Nvidia executives and directors have sold almost 11 million shares this year, amounting to over $1.8 billion. According to Bloomberg, this is the largest stock sale by company leadership in recent history after adjusting for stock splits. This amount represents less than 0.045% of the company’s total astounding shares, but this news might put some downward pressure on Nvidia’s stock price, especially with the delays on the Blackwell B200 GPUs.
Reports say that Nvidia CEO Jensen Huang recently sold 6 million shares under a pre-arranged trading plan, meaning this move will happen regardless of what’s happening with the company and in the market. This sale netted Huang about $713 million, but he still holds more than $100 billion worth of Nvidia shares.
Another big Nvidia sale was executed by Nvidia Director Mark Stevens, who has sold 1.6 million shares worth about $390 million so far in 2024. However, he has also filed for an additional sale of 3 million shares, which could net him over $731 million. Another director, Tench Coxe, has also made $525 million after selling some of his shares earlier this year.
Nvidia made the news earlier this year when its stock price hit record highs because of the AI GPU rush. This made the company the world’s most valuable, jumping ahead of Apple, Microsoft, and Google in late June. Its market price has since corrected, with the stock price falling by about 10%. However, this still puts the company among the most valuable in market capitalization.
The company’s rosy outlook might not last long, though, as some say that its AI valuation is overhyped and in a bubble. Even Goldman Sachs is asking whether the massive investments made in hardware and AI training will ever pay off. It says that AI is currently too expensive and unreliable and that the industry needs to make at least $600 billion annually to break even.
These sales aren’t a sign that its leadership expects Nvidia’s stock price to tank, especially for Huang’s pre-planned sales. The actions of some of its executives and directors do not indicate the direction that its shares will head. Although this does not build confidence for investors looking to get into the stock, the sales performance of Nvidia’s upcoming Blackwell chips will better show what the market thinks of the company and AI in general.
