In a significant development for the tech industry, billionaire entrepreneur Jensen Huang, CEO of NVIDIA, has sold over 5 million shares of the company’s stock in recent months, cashing out approximately $630 million. This move coincides with the company’s stock price peaking in June, a record high that has since faced challenges.
Documents filed with the U.S. Securities and Exchange Commission (SEC) revealed that Huang sold nearly 530,000 shares of NVIDIA stock between June 13 and September 4, with each transaction consisting of 12,000 shares. Earlier this year, Huang had initiated a 10b5-1 trading plan, which allows company insiders to schedule sales of a predetermined amount of stock over a set period to avoid allegations of insider trading.
As of August 9, Huang remained NVIDIA’s largest individual shareholder, owning about 3.5% of the company’s shares. Currently, his personal wealth is estimated at around $94.2 billion, a substantial increase of $50 billion since the start of the year, positioning him as the 18th richest person globally, according to the Bloomberg Billionaires Index.
The past year has seen a significant surge in NVIDIA’s stock, driven by heightened investor interest in artificial intelligence (AI), with shares rising over 120% year-to-date. However, recent performance has been lackluster, with the stock experiencing a decline of approximately 11% in the last three months. On a particularly rough day for the tech giant, NVIDIA’s stock dropped 9.53%, translating to a staggering market value loss of about $279 billion, marking a record drop for U.S. stocks in a single day.
NVIDIA’s recent downturn can be attributed to several factors, including earnings that fell short of Wall Street’s highest expectations, delivery issues related to the much-anticipated Blackwell chip, ongoing antitrust scrutiny from the U.S. government, and growing investor caution regarding AI investments.
Analysts suggest that Huang’s continuous stock sales may signal to investors that the AI bubble could be nearing its end, indicating that NVIDIA’s stock price may have reached unsustainable heights.