NVIDIA CEO Jensen Huang Sells $580 Million in Stock Amid AI Market Uncertainty

Jensen Huang, CEO of NVIDIA, has sold $580 million in company stock since June, capitalizing on the AI boom. The sales come as NVIDIA's stock faces increased scrutiny, reflecting broader concerns in the tech sector.

CEO Jensen Huang's $579M Stock Sales Since June Reflect Growing Investor Caution on AI

Since June, when NVIDIA's stock reached its zenith and momentarily became the most valuable company in the world, Jensen Huang, the company's CEO, has been actively selling shares. As per Huang's most recent SEC filing, submitted on August 30, he has sold $14.2 million in stock. The executive has sold $579 million in shares since the second week of June, allowing him to leverage his status as one of the world's wealthiest individuals.

NVIDIA's stock has declined since June as Wall Street has become increasingly cautious about artificial intelligence. Consequently, investors have shifted their attention to cost control and monetization, expecting the euphoria that has prevailed since last year to be restored.

According to the most recent SEC filing (via Wccftech), Huang has sold NVIDIA stock 40 times this year. In mid-June, the NVIDIA CEO sold 12,000 shares for $15.5 million, marking his initial transaction. Ever since, Charles Schwab, the banking behemoth, has served as his primary broker, and all of his sales have been comprised of share blocks of 12,000 shares.

Executive stock sales are preplanned events designed to prevent executives from profiting from any privileged knowledge they may have about their company's operations. Under the SEC's Rule 10b5-1, these transactions are conducted by a third party over whom the executive has no control.

Although Huang has been the primary high-level executive at NVIDIA regarding stock transactions, he is not the only one. NVIDIA's quarterly filing for the first quarter of fiscal 2025 disclosed that its executive vice presidents of operations and worldwide field operations, CEO Huang and CFO Colette Kress, had also planned stock sales, as required by regulations.

NVIDIA Executives Sell $677M in Stock Amid Huang's Daily $14.49M Share Sales Since June

As of August 30, 2024, the NVIDIA CEO had sold shares 40 times, including the initial transaction in June. Each transaction involved a block of 120,000 shares, resulting in an average profit of $14.49 million per transfer. He had earned $579.7 million from his 2024 stock transactions.

Ajay Puri, the EVP of worldwide field operations, and Debora Shoquist, the EVP of operations, have also held stock this year, in addition to Huang's over $500 million in stock sales. In mid-June, Kress sold 300,000 shares to generate $39.2 million in revenue. During the second quarter, Puri, the EVP of field operations, filed a 10b5-1 to sell one million NVIDIA shares.

Puri sold 100,110 shares in July, and NVIDIA disclosed this arrangement in its SEC filing for the first quarter of fiscal 2025. After this sale, NVIDIA's Q2 SEC filing disclosed that Puri had opted to abandon this strategy following the unique July sale, which generated $13 million.

Another 10b5-1 plan in the Q1 filing was for EVP Shoquist, which permitted her to sell 41 million shares until June 2025. Shoquist has also sold stock only once this year, similar to Kress. This transaction occurred in early July and resulted in $45.1 million in revenue for her.

This year, the four NVIDIA executives sold $677 million in stock. Since June, Huang has been selling stock in blocks of 120,000 shares nearly daily, accounting for most transactions.