NVIDIA insiders cash out over $1B as stock hits record-high
What's the story
NVIDIA insiders have sold over $1 billion worth of company stock in the last year, with a spike in recent weeks, according to the Financial Times. The move comes as executives look to cash in on record share prices driven by investor enthusiasm for artificial intelligence (AI). Over $500 million of these sales were made this month alone, as the California-based chipmaker's stock hit a record high.
Market dominance
Reclaiming the title of most valuable company
NVIDIA has reclaimed its position as one of the world's most valuable companies by market capitalization, with its shares hitting an all-time high. The company's market cap has ballooned to around $3.76 trillion, reflecting significant growth due to the surge in corporate and government spending on AI infrastructure. This massive growth underscores NVIDIA's influence in the tech industry and its significant role in driving AI advancements.
Strategic selling
CEO starts selling stock for 1st time since September
NVIDIA's CEO, Jensen Huang, has started selling stock this week for the first time since September. The company said all of Huang's trades were executed under a pre-arranged 10b5-1 trading plan established in March, which specifies the timing and pricing of sales in advance. Under this plan, he can sell up to six million shares by year-end, potentially realizing over $900 million at current valuations.
Executive sales
Other executives and directors also selling shares
Other senior executives and directors at NVIDIA have also sold shares amid the stock price surge. Mark Stevens, a longtime board member, has disclosed plans to sell up to four million shares. Since June 2, he has sold about $288 million worth of his allotment valued at around $550 million. Jay Puri, executive VP of worldwide field operations, sold some $25 million worth of stock on Wednesday.
Stock recovery
Stock rebounds sharply after dip earlier this year
NVIDIA's stock has rebounded sharply after a dip earlier this year, despite facing pressure from tighter US export controls on AI chips to China and rising competition from Chinese firms. The stock has rebounded over 60% from its closing low on April 4, as investor demand for NVIDIA's AI chips remains strong. This resilience highlights the company's position in the global tech landscape.