Why CEO Huang offloaded NVIDIA shares worth almost $15M
What's the story
Jensen Huang, the CEO of NVIDIA Corporation, has sold 100,000 stocks of the company. The sale was valued at around $15 million, and is part of a larger strategy that permits him to offload shares of up to $865 million worth by the end of this year. The step comes as part of a new 10b5-1 plan adopted this March and disclosed last month in NVIDIA's quarterly report.
Financial profile
Pre-arranged trading plans
Huang, who is the world's 12th richest person with a fortune of $126 billion, has most of his wealth tied to NVIDIA shares. He has sold over $1.9 billion worth of NVIDIA stock in the past. The pre-arranged trading plan he follows is common among billionaires and executives looking to cash in some stock without alarming investors.
Sales strategy
Huang's plan allows him to sell 6M shares
Huang's trading plan gives him the option to sell as many as six million shares by year-end. At Monday's closing price of $144.17, that would be worth $865 million. Another filing yesterday showed Huang wants to sell another 50,000 shares shortly.
Market outlook
NVIDIA's stock has jumped 800% since December 2022
NVIDIA's stock has skyrocketed over 800% since December 2022, largely due to the public launch of OpenAI's ChatGPT. The demand for NVIDIA's graphics processing units (GPUs) has been on the rise as they are required to develop and power AI services. Despite facing export control problems that could limit foreign markets for its AI chips, NVIDIA continues to grow with a 9% increase in its stock this year.