Strategic Exit NVIDIA CEO Jensen Huang Sells Shares Worth 500 Million Ahead of Market Decline
Bloomberg reports that Nvidia’s CEO Jensen Huang sold $323 million worth of his own shares before a stock price decline 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 chip delayed, asset management companies: the company is in a bubble phase, AI is being overly hyped)
Content Directory
Toggle
Understanding AI and market manipulation? Jensen Huang sold $323 million in Nvidia stock in July
Nvidia executives have sold over $1 billion in stock cash-outs since the beginning of the 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, having also 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 of this year, he is expected to 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 coincides with concerns about a potential global economic recession, which has led to a general decline in tech stocks; Nvidia’s stock has dropped 14% over the last three trading days and has fallen more than 23% from recent highs.
(The Dow plunges over 1,000 points, Federal Reserve officials assert: the economy is not in recession)
This Monday, the global stock market faced a massacre due to disappointing economic data, weak Q2 earnings from tech companies, and the unwinding of yen carry trades, resulting in heavy investor panic and selling pressure across capital markets from Asia to the U.S. and Europe.
On the other hand, aside from Huang, Nvidia 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 is set to continue reducing his stake in Nvidia in August as planned.
Last year, Chain News discussed whether there was insider trading concerning U.S. companies selling stock. However, in reality, the U.S. Securities and Exchange Commission (SEC) has strict regulations regarding stock sales by company executives. It is reported that related stock sale plans must be established or modified at least 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 sluggish U.S. employment data in July and turbulent international military situations, the resulting sharp declines in global stock markets have led to a $5.9 billion shrinkage in Huang’s net worth in recent weeks, dropping his ranking to 16th place with assets totaling $88.4 billion.
(The Dow plunges 1,000 points, Nasdaq falls 6%, global markets shaken: Will tomorrow still be a good day?)
Meanwhile, one of its competitors, AMD, has released impressive Q2 earnings at this time, challenging Nvidia’s market dominance through advancements in core products and aggressive acquisitions of startups.
(Ju Si-feng announces AMD’s earnings report: MI 300 chips strongly challenge Nvidia, AI layout)
NVIDIA
Stock Sale
Nvidia
Jensen Huang
Related Reading
Nvidia’s new AI chip delayed, asset management companies: 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
