Nvidia insiders sell over $1 billion in shares amid AI boom

Nvidia insiders sell over $1 billion in shares amid AI boom

The logo of Nvidia as seen at its corporate headquarters in Santa Clara, California, in May of 2022. Photograph: (Courtesy Nvidia Handout via Reuters)

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Nvidia CEO Jensen Huang and many senior executives cash in as the chipmaker's stock hits record high. Nvidia’s market capitalisation has skyrocketed to $3.8 trillion, quadrupling in just a few years.

Insiders at Nvidia have sold more than $1 billion worth of shares over the past 12 months, with over $500 million worth of stock sales taking place in June alone, according to a report by the Financial Times. The surge in insider trading comes as Nvidia’s stock price soared to record highs, driven by global enthusiasm for artificial intelligence (AI) technologies and the massive demand for high-performance chips. The California-based chipmaking company briefly became the world’s most valuable company last week, buoyed by optimism over AI infrastructure spending by governments and private companies. Nvidia’s market capitalisation has skyrocketed to $3.8 trillion, quadrupling in just a few years.

Nvidia CEO Jensen Huang began selling shares this week for the first time since September, the FT reported, citing filings with the US Securities and Exchange Commission (SEC). The sales are part of a pre-arranged trading plan filed in March that only became active following a 90-day mandatory cooling-off period.

According to VerityData, which tracks insider transactions, the surge in Nvidia’s share price above $150 triggered Huang’s sales. Under the current trading plan, he can sell up to six million shares by the end of 2025, potentially earning over $900 million at current market prices. Despite these sales, Huang still retains the vast majority of his Nvidia holdings. His estimated net worth now stands at $138 billion, according to Forbes.

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Board members and executives also cash in

Several senior figures at Nvidia have also taken advantage of the stock’s dramatic rise. Mark Stevens, a long-time board member and early investor through Sequoia Capital, has announced plans to sell up to four million shares, worth approximately $550 million, and has already sold $288 million.

Jay Puri, Nvidia’s executive VP of worldwide field operations and a key envoy for China relations, sold about $25 million in shares this week. Other board members, including Tench Coxe and Brooke Seawell, have also moved to liquidate portions of their holdings, with Coxe selling around $143 million and Seawell about $48 million.

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The share sales follow a steep rebound in Nvidia’s stock price, which has jumped more than 60 per cent from their closing low on April 4. The stock had dipped earlier this year amid concerns about new US export restrictions on AI chips and competitive threats from Chinese firms like DeepSeek.

Analysts say the stock’s rally is driven by renewed optimism that the AI “gold rush” is far from over. As investors continue to pile into the AI trade, Nvidia’s insiders appear to be cashing in, strategically and legally, on their long-held stakes.

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