Why Jensen Huang sold shares worth $50M last week
What's the story
NVIDIA CEO Jensen Huang sold 300,000 shares of his company for almost $50 million last week, CNBC reported. The step comes as the chipmaking giant continues to lead the AI race and prepares to restart chip shipments to China. On Friday, Huang sold 75,000 shares worth around $12.94 million as part of a pre-arranged trading plan he adopted in March.
Financial strategy
Planned sales part of strategy to sell 6M shares
Earlier this week, Huang sold 225,000 stocks for around $37 million. The planned sales are part of a strategy under which he can sell up to six million stocks of the tech powerhouse. The move comes as NVIDIA continues to see an explosive demand for its graphics processing units (GPUs), which are the hardware backbone of large language models and AI platforms.
Market impact
Huang's wealth surges
The AI-fueled rally has pushed NVIDIA's market capitalization to surge significantly, making it one of the most valuable publicly traded companies. This development has also significantly increased Huang's personal wealth. At a conference in Beijing on Wednesday, Huang reiterated his commitment to the Chinese market and expressed hopes of selling even more advanced chips than the H20 model in future.
Sales resumption
NVIDIA to resume sales of AI chips to China
Alongside these developments, NVIDIA has confirmed its plans to resume sales of its H20 AI chips to China. This comes after recent signals from the current US administration that it would approve export licenses. The H20 chips were custom-built to comply with US export controls but were previously held up due to regulatory restrictions aimed at limiting China's access to advanced semiconductors.