Bloomberg reports that Nvidia’s CEO Jensen Huang sold $323 million worth of his company’s stock before a drop in share price in July, marking his highest monthly cash-out record. Over the past two months, he has accumulated nearly $500 million in stock sales.
(Nvidia’s new AI chips delayed, asset management firm: the company is in a bubble phase, AI is being overly hyped)
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Understanding AI and market maneuvers? Jensen Huang sold $323 million in Nvidia stock in July
Nvidia executives have sold over $1 billion in shares this year
Jensen Huang’s net worth has evaporated by $5.9 billion in recent weeks
Reports indicate that Huang sold $322.7 million worth of Nvidia stock in July and made significant sales in June, totaling nearly $500 million in stock sales over the two months.
As part of the 10b5-1 stock sale plan established by Huang in March this year, it is reported that he will sell up to 600,000 shares of Nvidia stock by the end of March 2025 at the latest.
It is worth noting that the timing of these stock sales coincided with concerns about a potential global economic recession, which caused technology stocks to decline generally. Nvidia’s shares have dropped 14% in the last three trading days and have fallen over 23% from recent highs.
(Dow plunges over 1,000 points; Fed officials assert: the economy is not in recession)
This Monday, due to weaker-than-expected economic data, disappointing Q2 financial reports from tech companies, and the unwinding of yen carry trades, global stock markets faced a massacre, with significant investor panic and selling pressure across capital markets from Asia to the U.S. and Europe.
On the other hand, apart from Huang, Nvidia’s board member and the company’s second-largest shareholder Mark Stevens, as well as Global Operations Executive Vice President Jay Puri, also sold $125 million and $10 million worth of stock, respectively, in July.
Since the beginning of this year, Nvidia insiders have collectively cashed out over $1 billion in stock, while Huang has sold approximately $1.4 billion in stock since 2020, and he plans to continue reducing his stake in Nvidia in August as per the original plan.
Last year, Chain News discussed whether there was insider trading involved in U.S. corporate stock sales. However, the reality is that the U.S. Securities and Exchange Commission (SEC) has strict regulations concerning stock sales by company executives. It is reported that relevant stock sale plans need to be devised or amended three months in advance and submitted to the SEC.
In mid-June, Nvidia’s market capitalization first surpassed $3.335 trillion, officially overtaking Microsoft to claim the title of the world’s market value champion.
However, due to the sluggish U.S. employment data in July and the turbulent international situation, the significant drop in global stock markets has led to a $5.9 billion decrease in Huang’s net worth in recent weeks, dropping his ranking to 16th place with a net worth of $88.4 billion.
(Dow index plummets over 1,000 points; Nasdaq drops 6%; global markets tremble: is tomorrow still a good day?)
On the other hand, one of its competitors, AMD, has released impressive Q2 financial results, challenging Nvidia’s dominance through advancements in core products and aggressive acquisitions of startups.
(Juan Su, AMD’s earnings report: MI 300 chip strongly challenges Nvidia, AI layout)
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Further Reading
Nvidia’s new AI chips delayed, asset management firm: the company is in a bubble phase, AI is being overly hyped
Siggraph Forum | Nvidia CEO Jensen Huang discusses the future of AI with Meta CEO Mark Zuckerberg