Nvidia insiders sell over US$1b in stock as shares rocket: FT
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The news: Nvidia insiders have sold over USD1 billion ($1.53 billion) worth of shares in the past 12 months, with an uptick in recent trading as investor interest around artificial intelligence surges, the FT reports.
The numbers: Over USD500 million in share sales took place in June, as Nvidia’s share prices reached new record highs.
The context: Last week Nvidia overtook Microsoft to one again become the world’s most valuable company and is on track to reach a USD4 trillion market capitalisation, as demand for chips to power AI applications continues to surge. Nvidia took a hit as US-China trade tensions threatened demand for its products, but have now rebounded over 60% from their low on 4 April in the wake of Trump’s tariff announcements. The company also incurred a USD4.5 billion charge in the first-quarter due to new US export licensing requirements for H20 products to China.
An SEC filing shows that Jensen Huang, Nvidia's chief executive, started selling shares this week for the first time since September. The FT reports that a platform which tracks insider sales based on regulatory filings, VerityData, found that Nvidia’s share price increase over USD150 appears to have triggered Huang’s sales.
Nvidia told the FT that Huang’s sales were part of a pre-arranged trading plan agreed in March, with prices and dates set for sales to be triggered. Under the plan, Huang can sell as many as 6 million shares before the end of this year, allowing him to potentially earn over USD900 million.
