NVIDIA CEO Jensen Huang sold over 230 billion KRW worth of shares last month, according to Bloomberg on the 3rd (local time). The Bloomberg Billionaires Index estimates Huang’s net worth at $113 billion, making him the 13th richest person globally.
According to data submitted to the U.S. Securities and Exchange Commission (SEC), Huang sold 1.3 million NVIDIA shares in June, amounting to $169 million (approximately 234.4 billion KRW). This stock sale occurred when NVIDIA’s market capitalization first surpassed $3 trillion on the New York Stock Exchange.
NVIDIA’s stock has been on a remarkable rise over the past two years, driven by the AI boom. The company’s market cap exceeded $1 trillion in June last year, $2 trillion by February this year, and reached $3 trillion for the first time on June 5. As of the closing price that day, NVIDIA’s market cap was $3.155 trillion. The average sale price of Huang’s shares was around $130. NVIDIA’s stock closed at $128.28, up 4.57% from the previous day.
The reason for Huang’s stock sale is unknown. Bloomberg reported that the sale was part of a 10b5-1 trading plan adopted in March. This plan allows corporate insiders to sell a predetermined amount of stock at a predetermined time, based on a contract with a brokerage firm. Huang reportedly planned to sell 600,000 shares of NVIDIA (before a 10-for-1 stock split) under this plan by March next year.
Since early 2020, Huang has been selling stock, including stock options. He has consistently sold shares as the stock price has risen, with the total amount sold reaching approximately $1.1 billion, including last month’s sale, according to Bloomberg.
Huang currently owns about 3.5% of NVIDIA’s outstanding shares. Bloomberg also reported that other NVIDIA executives have sold significant amounts of stock in the first half of this year, totaling over $700 million, the highest on record.
Market opinions on the future of NVIDIA’s stock price are mixed. The prevailing view is that the stock will continue to rise. As the semiconductor industry, critical to the AI sector, transitions from the H100 to the H200, NVIDIA is expected to sustain its high growth.
However, some believe the company’s stock is overvalued and may not see further significant gains. NVIDIA’s current price-to-earnings ratio (PER) stands at 76, posing a valuation burden.