Nvidia Insiders Sell $1 Billion In Shares

There was a great deal of comment when Nvidia (NASDAQ: NVDA)  CEO Jensen Huang filed to sell as many as $900 million in shares in a preapproved plan in an SEC disclosure. However, taken together, senior management and board members will sell well over $1 billion in shares according to data from the same federal data as analyzed by the FT.

Insiders have picked what is probably the best time in Nvidia’s history for the transactions. The company is the most valuable in the world with a market cap of $3.84 trillion. The stock is up over 1,600% in the last five years.

Additionally, Nvidia revenue growth has been about 60% quarter over the same quarter last year. Based on its own short term revenue forecast, it will keep up that pace.

Nvidia is also the only game in town when it comes to the world’s most powerful AI chips. By some estimates its market share is 92%. The one place it is locked out of for the time being is China. That could cost $50 billion. Huang told CNBC, “China is a very large market. It’s probably going to be a $50 billion market in the next couple or three years. It’ll be a tremendous loss not to address it as an American company.” The comment caused the stock to sell off until Huang said Nvidia’s revenue would not be greatly affected because the global market for AI chips is growing so quickly.

The FT analysis shows former board member Mark Stevens has disclosed he will sell as many as $550 million in shares. Nvidia’s executive vice-president of worldwide field operations, Jay Puri, has sold $25 million worth. Sales by other board members and officers could total another $200 million.

The sell offs are not unusual. Companies which have produced results that make shares surge in price allows people who are long time contributors to success get a reward by taking some of their gains off the table

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