The shares of the chief chipmaker rose 4% as reports surface that its chief executive, Jensen Huang, has completed selling all shares allocated under his scheduled sale plan amounting to a staggering $713 million. These sales have been done on the basis of a 10b5-1 trading plan under which executives are allowed to sell their stock based on a predetermined schedule without violating the insider trading law. Such a boost in price shows that investors are confident now, as they think Huang has completed selling shares under this plan.
Huang remains the largest shareholder of Nvidia, holding more than 93 million shares, which amount to more than 3.75% of outstanding common stock. He stopped selling shares at this point since Nvidia continues to enjoy great times; for now, the company can continue the uptrend because of dominance in AI and semiconductor markets. Its market capitalization is rapidly approaching $3 trillion, making it one of the industry leaders. Investor optimism further gains momentum in the fact that Nvidia’s chips are very critical to major tech firms like Microsoft, Meta, Alphabet, and Amazon.
While the stock has had some sales going out, the huge outstanding stake by Huang reassures investors about the future prospects of Nvidia, particularly given the fact that this company has a great role to play in the AI revolution. This strategic halt on sales is probably what brought comfort to the shareholders, pushing the stock up. Nvidia’s stock has been growing more than 150% year-to-date; one can notice the resilience and upside potential.
