Nvidia CEO Jensen Huang Sells $1 Billion Shares Amid AI Chip Demand Surge
Jensen Huang, the CEO of Nvidia Corp, recently executed a significant stock sale, liquidating over $1 billion in shares. This transaction is part of a pre-arranged plan initiated in March, allowing Huang to offload up to six million shares by year-end.
Details of the Stock Sale
The stock sales began in late June, with an initial valuation of $865 million. Due to a surge in demand for AI processors, Nvidia’s stock increased by more than 40%, bringing the final sale value to over $1 billion. Huang completed his last sale of 25,000 shares on a Friday.
Nvidia’s Market Value Milestone
- Nvidia recently became the first company to achieve a market value of $5 trillion.
- This milestone occurred just four months after surpassing the $4 trillion mark.
- In 2023, three new billionaires emerged from Nvidia, including board member Brooke Seawell.
Huang, aged 62, ranks ninth on the Bloomberg Billionaires Index with a fortune of $175.7 billion. He has gained $61.3 billion this year alone and retains a 3.5% stake in Nvidia.
Philanthropic Contributions
In addition to the stock sales, Huang has donated shares worth over $300 million this year to his foundation and other charitable initiatives. Since 2001, he has sold over $2.9 billion worth of Nvidia stock.
Trends in Insider Selling
Huang is not the only Nvidia insider capitalizing on the AI surge. Arista Networks CEO Jayshree Ullal sold $861 million in stock, making her one of the top company insiders cashing out.
- Nvidia insiders sold nearly $1.5 billion worth of stock through the third quarter.
- In 2024, they have already sold more than $2 billion, up from $462 million in 2023.
While many companies have benefited from the AI boom, Nvidia stands out, having produced a unique trend of seven billionaires from within its ranks. Board member Tench Coxe has joined the list of the world’s 500 richest people with a net worth of $7.5 billion, while fellow director Mark Stevens holds a fortune of $12.5 billion, bolstered by both Nvidia stock and partial ownership of the Golden State Warriors.
