Over $1 Billion Sold in a Year, Jensen Huang's Scheduled Divestment Plan in Progress
Executives at NVIDIA, the artificial intelligence chip giant, have collectively sold over $1 billion in company stock over the past year, drawing close attention from investors. According to insiders, NVIDIA insiders have cashed in about $500 million over the past month amid market highs and easing geopolitical tensions.
Documents show that NVIDIA's founder and CEO Jensen Huang has recently sold approximately $15 million in stock. This sale is part of a sales plan announced in March this year, under which Jensen Huang will sell up to 6 million shares worth over $900 million within the year. Jensen Huang is currently worth about $138 billion and ranks 11th globally on the Bloomberg Billionaires Index.
Stock Price Soars, Market Value Reclaims Global Top Spot
Despite potential risks from U.S. restrictions on NVIDIA's overseas sales of high-performance AI chips, NVIDIA's stock price has risen over 17% this year, with a 44% surge in the past three months alone. Last week, NVIDIA's stock price reached a record high, increasing for five consecutive days following the announcement of the annual shareholders' meeting and executive sales.
At the shareholders' meeting, Jensen Huang stated that following artificial intelligence, robotics will become NVIDIA's next significant growth engine, signaling a continued strategic focus on AI ecosystems and hardware technology. This statement boosted market confidence, helping NVIDIA's market value surpass Microsoft and Apple, reclaiming the title of the world's most valuable company.
Insiders' Sales Prompt Market Talk
The Financial Times, citing a VerityData report, reported that NVIDIA's stock price breaking the $150 key level triggered a new wave of insider stock sales. It is reported that Jensen Huang had already sold over $700 million worth of company stock last year according to a predetermined sales plan, and with continued sales this year, total cash-ins over the past 12 months have exceeded $1 billion.
Despite strong stock performance, consecutive insider sales have prompted market discussions about the stability of the high stock price. Some analysts believe large-scale insider sales are often seen as a signal that company executives see the current stock price as peaking. It's crucial to observe the effect on subsequent market sentiment. However, some argue that the sales by Jensen Huang and other executives are in line with a predetermined plan and have no direct negative connection to the company's fundamentals.
NVIDIA Responds Cautiously, Market Focuses on AI's Continued Potential
In response to reports of continued sales, an NVIDIA spokesperson declined to comment, maintaining a typically low-profile stance. Currently, NVIDIA is in a period of high global demand for AI chips, with its H100 and B200 series chips serving as key drivers of growth in the large model and generative AI industry, with ongoing strong order demand.
Many investment banking institutions remain optimistic about NVIDIA's future profitability, believing its leading position in AI accelerated computing and robotics fields will continue to support the company's mid- to long-term value. However, as the scale of insider sales continues to expand, investors must keep an eye on whether the company will face potential volatility due to changes in supply chains, regulations, and the global trade environment.
