Jensen Huang Leads as Nvidia Executives Cash In Over $500 Million Amid Record Highs This Month

TradingKey - According to the Financial Times, Nvidia's top executives have cashed out more than $1bn in company stock over the past year, with over half of those transactions taking place this month.

Nvidia's filing with the SEC on June 26 revealed that since June 20, CEO Jensen Huang has sold a total of 300,000 Nvidia shares, valued at nearly $44.9 million. This marks his first sale since September last year.

Under 10b5-1 prearranged trading plan, Huang plans to sell a total of 6 million Nvidia shares this year, valued at over $900 million based on last Friday's closing price of $157.75 per share.

Huang Leads the Charge, Selling Above $150

Nvidia stated that all of Huang’s stock sales were conducted according to a prearranged trading plan established in March, which determined the price and dates for triggering sales.

VerityData reported that the trigger for Huang’s sale seemed to be Nvidia’s stock surpassing $150. Ben Silverman, Vice President at VerityData, noted that Huang did not sell during the first quarter’s price dip but waited for a suitable price, demonstrating strategic wisdom.

Other Nvidia executives have mirrored this strategy. Board member Mark Stevens has sold shares worth $288 million. Executive Vice President of Worldwide Field Operations, Jay Puri, sold about $25 million worth of stock on June 19. Former Managing Director at Sutter Hill Ventures, Coxe, cashed out approximately $143 million on June 9, while Seawell, a partner at venture capital firm New Enterprise Associates since 1997, sold shares worth around $48 million this month.

Three Consecutive Record Highs: Analysts See Further Upside

On Friday, June 27, Nvidia shares closed up 1.76% at $157.75, marking the third consecutive day of record closing prices, with a market cap reaching $3.85 trillion.

Last week, Nvidia shares surged following Huang's optimistic remarks at the annual shareholder meeting about AI and robotics technologies presenting “trillion-dollar opportunities,” positioning Nvidia at the start of a decade-long AI infrastructure build-out, reclaiming its status as the market leader in terms of market capitalization.

Barclays analysts raised Nvidia's target price to $200, predicting the market cap could reach $4.9 trillion. The research team at Bernstein noted that increased capital expenditure by tech companies on AI and the development of sovereign AI will benefit large chip stocks like Nvidia.

Loop Capital analyst Ananda Baruah anticipates that expenditure on chips supporting generative AI systems will grow faster than investors expect, hence raising Nvidia’s target price from $175 to $250, suggesting Nvidia’s market cap could reach $6 trillion.

According to the Bloomberg Billionaires Index, Jensen Huang is currently the 11th richest person globally, with a net worth of $138 billion. Should Nvidia's stock rise as expected, Huang could break into the top ten of the global wealth rankings through further stock sales.

[Source: Bloomberg Billionaires Index, Bloomberg]