Nvidia's (NVDA, Financial) CEO Jensen Huang has completed the sale of 6 million shares, but other insiders are still selling. Board member Mark Stevens has sold 1.6 million shares this year and plans to sell an additional 3 million. The company's stock price has surged significantly from last year, prompting insiders to cash out over $1.8 billion. More sell-offs are expected in the future.
This year, Nvidia executives and directors have collectively reduced their holdings by nearly 11 million shares, marking the largest selling activity since 2020, even after considering the impact of stock splits. Despite these sales, the insider transactions represent a small portion of Nvidia's total outstanding shares. CEO Jensen Huang still holds shares worth over $100 billion.
Analysts suggest that insider sales might cause concern for investors considering buying Nvidia stock. Additionally, there are market worries about how long large tech companies can sustain high investments in AI. However, some analysts believe there isn't a strong correlation between the CEO's stock transactions and the company's stock performance over the long term.
This week, Jensen Huang announced that Nvidia's Blackwell architecture chips are in full production, with demand soaring. This news helped Nvidia's stock outperform the broader market, closing up over 3.3%.
