Nvidia CEO Activates 10b5-1 Trading Plan, Kicks Off Stock Sales

Nvidia CEO Jensen Huang has initiated a new 10b5-1 trading plan, aiming to sell up to 6 million shares by the end of the year. The timing follows a sharp rebound in Nvidia stock, which tumbled below $100 earlier this spring but has since surged 53% to around $144 as of Monday’s close.

Bloomberg cited a new Securities and Exchange Commission filing showing that Huang disposed of 100,000 shares between last Friday and Monday for $14.4 million. The sales are part of a new 10b5-1 trading plan the tech CEO adopted in March. 

Data pulled from Bloomberg via the Insider Transaction function on the Terminal shows Huang’s two 50,000-share sales following a massive multi-month rally in the stock, which is now nearing all-time highs.

Huang’s prearranged stock trading plan was established in March under SEC Rule 10b5-1, which allows corporate insiders to sell stock at predetermined times—even if they later possess material nonpublic information. These plans are designed to shield executives from accusations of insider trading.

The 10b5-1 gives Huang a 6 million share option by the end of the year. As of Monday’s close, at $144, that would be valued at $865 million. 

According to a separate SEC filing, billionaire Nvidia board director Mark Stevens has begun selling stock, disposing of more than 600,000 shares for roughly $88 million on June 18. Unlike Huang, Stevens does not use a 10b5-1 trading plan.