Precise Exit Nvidia CEO Jensen Huang Sells Shares Worth 500 Million Before Dramatic Drop
Bloomberg reported that Huang Renxun, CEO of chip manufacturing giant Nvidia, sold $323 million of his own shares before the stock price dropped in July, setting a personal record for highest monthly cash-out and accumulating nearly $500 million in stock sales over the past two months.
Nvidia’s new AI chip has been delayed, with asset management companies pointing out that the company is in a bubble phase and AI is being overhyped.
Huang Renxun sold $322.7 million of Nvidia shares in July and also conducted significant sales in June, totaling close to $500 million in stock sales over the two months.
As part of Huang Renxun’s 10b5-1 stock selling plan established 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.
It is worth noting that the timing of these stock sales coincides with concerns of a potential global economic recession and a general decline in tech stocks before Nvidia’s stock fell 14% in the past three trading days, dropping over 23% from recent highs.
On Monday, global stock markets faced a bloodbath due to soft economic data, disappointing Q2 earnings from tech companies, and the unwinding of yen carry trades, leading to heavy investor panic and selling pressure across Asian, American, and European capital markets.
In addition to Huang Renxun, Nvidia board member and second-largest shareholder Mark Stevens, as well as Vice President of Global Operations Jay Puri, sold $125 million and $10 million worth of shares respectively in July.
Since the beginning of this year, insiders at Nvidia have collectively cashed out over $1 billion in stock, while Huang Renxun has sold about $1.4 billion in stock since 2020 and plans to continue reducing his Nvidia holdings in August.
Last year, ChainNews discussed whether insider trading exists in U.S. companies selling stock, but the Securities and Exchange Commission (SEC) has strict rules for company insiders selling stock, with sale plans required to be established or modified three months in advance and submitted to the SEC.
In mid-June, Nvidia’s market value surpassed $3.335 trillion, officially overtaking Microsoft to become the global market value leader.
However, due to weak U.S. employment data in July and volatile international geopolitical situations causing a sharp global stock market decline, Huang Renxun’s net worth has shrunk by $5.9 billion in recent weeks, dropping him to 16th place with assets of $88.4 billion.
Meanwhile, one of Nvidia’s competitors, AMD semiconductor company, released impressive Q2 earnings at this time, challenging Nvidia’s leadership position with advancements in core products and aggressive acquisitions of startups.
