Investors in AI chip maker Nvidia are paying close attention to the timing of stock sales. In June, Nvidia’s CEO Jensen Huang sold 1.3 million shares, earning $169 million—his highest monthly gain ever. According to Bloomberg, this brings Huang’s total gains from stock sales to nearly $1.1 billion since January 2020. Filings with the U.S. Securities and Exchange Commission reveal that Huang plans to continue selling shares this month.
As of June, Huang holds a 3.8% stake in Nvidia, amounting to over 934 million shares, making him the largest individual shareholder of the company. Since the beginning of this year, Nvidia executives and directors have collectively sold shares worth over $700 million.
Nvidia’s stock has surged by 3,000% over the past five years, significantly benefiting many long-term employees. The company’s market cap briefly exceeded $3 trillion in mid-June, making it the most valuable company in the world at that time. Despite a recent 16% drop in shares and a $500 billion loss in market cap, Nvidia’s valuation remains over $3 trillion, behind only Microsoft and Apple.
“The big question people have on this stock right now is just sustainability,” commented Stacy Rasgon, a senior analyst at Bernstein Research. “The numbers have gotten so big, so quickly, that you’ve got to wonder if they can continue.”
