Nvidia insiders have sold over $1 billion worth of company stock in the past year. More than $500 million of the share sales took place this month as the California-based chip designer’s share price climbed to an all-time high. Jensen Huang, Nvidia’s chief executive, started selling shares this week for the first time since September, according to an SEC filing.
Huang has sold 100,000 shares of the company’s stock, totaling nearly $15 million over Friday and Monday. These sales mark the beginning of Huang’s plan, adopted in March, to sell as many as 6 million shares of Nvidia by the end of the year. Despite these sales, Huang remains a significant shareholder, still owning over 800 million Nvidia shares.
With a net worth estimated at about $126 billion, Huang ranks 12th on the Bloomberg Billionaires Index. Nvidia’s stock hit a record on Wednesday, and the chipmaker reclaimed the crown as one of the world’s most valuable companies after an analyst said the chipmaker was set to ride a “Golden Wave” of artificial intelligence. Its latest gains reflect the U.S. stock market’s renewed interest in the “AI trade,” which fueled massive gains in chip stocks and related technology companies in recent years.
Nvidia insiders sell over $1 billion
Nvidia’s shares have rebounded over 60% from their closing low on April 4, when Wall Street was reeling from President Donald Trump’s global tariff announcements. U.S. stocks, including Nvidia, have since recovered on expectations that the White House will reach trade deals to soften the tariffs.
The value of Nvidia stock has surged by more than 800% since December 2022, fueled by the public’s adoption of ChatGPT, which relies on Nvidia’s graphics processing units (GPUs). These GPUs are pivotal in developing and powering artificial intelligence services. Nvidia’s growth continues, with the company’s stock up 9% this year, despite potential regulatory challenges that could impact its foreign markets.
In May, the company reported a revenue increase of 69% over the previous year, reaching $44 billion for the quarter. While large insider sales can occasionally raise alarms among investors, they can also be a part of routine portfolio diversification strategies. Nvidia has not released a statement regarding the insider transactions.
Investors will closely watch Nvidia’s upcoming financial disclosures and market announcements to gauge the potential impact of these stock sales on the company’s performance and market perception.