Nvidia CEO Jensen Huang Unloads Stock Worth $865M Amid Billions in Profits
Nvidia CEO Jensen Huang Starts Selling Chipmaker’s Stock Under Pre-Arranged Plan
Nvidia Corp. (NVDA) Chief Executive Officer Jensen Huang has begun selling the chipmaker’s stock, marking his first transactions under a plan that allows him to offload up to $865 million worth by year’s end. This move comes as part of a new 10b5-1 plan adopted in March and disclosed last month in Nvidia’s quarterly report.
According to a filing with the Securities and Exchange Commission on Monday, Huang disposed of 100,000 shares over a two-day period from June 20 to June 23 for $14.4 million. This sale is part of his pre-arranged trading plan, which gives him the option to sell 6 million shares by the end of the year.
As per calculations by the Bloomberg Billionaires Index, Huang’s sales are valued at more than $1.9 billion in Nvidia stock. The CEO has a net worth of $126 billion, with almost his entire fortune being made up of Nvidia shares. This sale is not surprising given Huang’s wealth and the fact that he has been selling stocks to diversify his portfolio.
Huang’s pre-arranged trading plan allows him to sell 6 million shares by year-end, which would be valued at $865 million at Monday’s closing price of $144.17. Another filing on Monday shows that Huang plans to sell another 50,000 shares imminently. This sale is part of his effort to reduce his exposure to Nvidia stock and diversify his wealth.
It’s worth noting that billionaire Nvidia board director Mark Stevens has also been selling stock. He disposed of more than 600,000 shares for about $88 million on June 18, according to a separate filing on Monday. Earlier in June, the investor filed a proposal to dispose of up to 4 million shares of the chipmaker’s stock and has so far offloaded more than 2 million.
Stevens has a net worth of $9.8 billion, according to Bloomberg’s wealth index. Unlike Huang and other board directors, Stevens doesn’t sell under a 10b5-1 plan. This distinction is significant as it highlights the different approaches that billionaires take when selling their stocks.
The sale of Nvidia stock by Huang and Stevens is not surprising given the company’s strong performance in recent years. Nvidia has been a major beneficiary of the growing demand for artificial intelligence (AI) and graphics processing units (GPUs). The company’s revenue has surged in recent quarters, driven by strong sales of its AI chips.
Nvidia’s success has made it one of the most valuable companies in the world. The company’s market capitalization has surpassed $1 trillion, making it a darling among investors. However, the sale of stock by Huang and Stevens is a reminder that even billionaires can diversify their wealth and reduce their exposure to specific stocks.
In conclusion, the sale of Nvidia stock by Jensen Huang and Mark Stevens is part of their effort to diversify their wealth and reduce their exposure to specific stocks. While the sale of stock is not surprising given the company’s strong performance, it highlights the different approaches that billionaires take when selling their shares.
