Nvidia CEO Jen-Hsun Huang Sells Stocks of Over $31 Million Amid Company Growth

Nvidia Corp (NASDAQ) recently reported that its President and CEO, Jen-Hsun Huang, sold a significant portion of his company stock, as per a new SEC filing. The transactions occurred between June 20 and June 21, 2024, and involved shares valued at over $31 million.

These stock sales were executed at varying prices, from $124.7483 to $140.2401 per share, as part of a prearranged trading plan under Rule 10b5-1. Huang’s sales started on June 20, with shares sold at prices ranging from $129.72 to $139.99, and continued the next day with prices between $124.38 and $140.70. Details on the exact number of shares sold at each price point can be requested from the SEC, Nvidia, or its security holders.

These transactions significantly reduced Huang’s direct ownership in Nvidia, although he continues to hold millions of shares indirectly through various trusts and partnerships. Additionally, Huang reported a gift transaction, transferring 445,000 shares to trusts where he serves as a trustee. Despite these sales, Huang retains a substantial stake in Nvidia through his indirect holdings.

Nvidia has not issued any statements about these transactions, but it is maintaining its usual operations. The company continues to experience significant growth due to its dominance in AI chip provision, with revenues projected to double to $120 billion this fiscal year and reach $160 billion the following year. However, some analysts, including Gil Luria from D.A. Davidson, have expressed caution about Nvidia’s future growth.

Recently, Nvidia’s share prices dropped, causing it to lose its position as the most valued company to Microsoft (NASDAQ), ending the Nasdaq’s seven-day streak of record highs. Concurrently, U.S. investors have been withdrawing from equity funds for the second consecutive week, with net outflows reaching $8.37 billion. Despite this, the S&P 500 and the NASDAQ achieved record highs, driven by strong performances from companies like Nvidia. Meanwhile, U.S. stock index futures experienced a slight decline, influenced by a pullback in large-cap technology shares, including Nvidia.

These events highlight recent trends in the tech sector and the financial market. Investors and analysts are closely monitoring the situation to inform their investment strategies.

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