NVIDIA CEO Jensen Huang has sold company shares worth $1B
What's the story
NVIDIA's Chief Executive Officer Jensen Huang has sold over $1 billion worth of the company's shares since June. The final sale was of 25,000 shares and completed a pre-planned stock sale strategy that Huang had set in motion in March. He had planned to sell up to six million shares by the end of this year.
Market impact
Huang's initial share sales in late June
When Huang began selling shares in late June, they were worth about $865 million. However, due to the high demand for AI processors, the stock has since risen by over 40%. This comes as NVIDIA had recently announced several new partnerships, contributing to a significant increase in its market value.
Philanthropy
Huang's extensive history of selling shares
Huang, who is the ninth richest person on the Bloomberg Billionaires Index with a fortune of $175.7 billion, has sold over $2.9 billion worth of NVIDIA stock since 2001. He also owns a 3.5% stake in the company and has donated shares worth over $300 million this year to his foundation and a donor-advised fund.
Insider gains
Other company insiders cashing in on AI boom
Not just Huang, other company insiders have also benefited from the AI boom. Arista Networks Inc. CEO Jayshree Ullal sold $861 million worth of stock in Q3, making her one of the top company insider sellers after Amazon.com Chairman Jeff Bezos. Meanwhile, NVIDIA insiders including Huang sold nearly $1.5 billion worth of stock through Q3, according to Washington Service data tracking such sales.
Wealth generation
Rise of NVIDIA stock creating wealth for insiders
NVIDIA has created an unprecedented amount of wealth with seven billionaires, including Huang, in its ranks. Recently, CFO Colette Kress and Jay Puri, the Executive Vice President of Worldwide Field Operations at NVIDIA, became billionaires with net worths of about $1.2 billion each. Board member Tench Coxe recently entered the world's 500 richest people club with a net worth of $7.5 billion, while fellow director Mark Stevens has a fortune of $12.5 billion.