Nvidia Executives Sell Significant Shares Amidst Stock Price Surge

Nvidia CEO Jensen Huang Sold $169 Million in Stock During the First Half of 2024. Time to Worry?

The stock leading the markets up this year, and really for the past two years, has been Nvidia (NASDAQ: NVDA), which briefly became the most valuable company in the world in June before falling back to its close third-place position. As the stock made new highs, Nvidia CEO Jensen Huang, along with other Nvidia insiders, sold a substantial amount of stock in June -- and have continued selling this month. So, how should current Nvidia shareholders take these sales, and should they be worried? $169 million for Huang, $700 million for other insiders In June, Huang sold 1.3 million shares of Nvidia, bringing in $169 million worth to his personal wealth. The June sales were Huang's first sales of the year. In addition, other insiders sold $700 million worth of stock. Not only that, but since the calendar flipped to July, Huang has sold another 480,000 shares worth a little over $60 million, bringing his total 2024 sales to roughly 1.78 million shares worth $230 million. That's a lot of money. But is it reason for Nvidia investors to be worried? Why Nvidia shareholders shouldn't be worried over stock sales The sales in and of themselves shouldn't be much of a worry for shareholders. After all, Huang still owned over 934 million shares (split-adjusted) at the beginning of June. That means his June and July sales have only equaled 0.2% of his total holdings! So while the sales amount to a lot in dollar terms, they're not much to be worried about in terms of Huang's total net worth. In fact, given Nvidia's meteoric rise over the past 18 months, one would have probably expected Huang to cash out even more. Furthermore, Huang's sales have come as a result of a 10b5-1 trading program. This is a type of program that executives often make with brokerage houses to sell shares of their company's stock, up to a certain amount and at a pre-determined level. Often, there is a delay between when an executive announces the program and when the brokerage house starts trading shares. In this case, Huang actually adopted the 10b5-1 program on March 14, exactly three months before the first sales on June 13. The plan is scheduled to run through March 2025 and may have an upper limit of 6 million shares. So even after all of June and July's sales to date, there is still a majority of the plan's sales remaining. Even if the entire plan is sold through March 2025, that would still amount to less than 0.65% of Huang's ownership stake. Image source: Nvidia. But there are other valid concerns around Nvidia stock right now While Jensen Huang's share sales are definitely not a reason to panic and sell Nvidia shares, there are a few risks to which shareholders should be paying attention. The first is the possibility AI investment doesn't keep up its torrid pace. In recent days, there have been reports suggesting the pace of AI spending could come to halt. In late June, Goldman Sachs' head of equity research Jim Covello put out a note saying the AI spending boom has many similarities with the dot-com bubble. Specifically, Covello doesn't believe the use cases for AI will result in revenues or cost savings that justify the current level of investment. He believes investors are pressuring companies to invest in or experiment with AI with "completely unclear" uses for the current AI technology. Similarly, around the same time, a partner at the famed venture capital firm Sequoia penned a blog post stating that he also doesn't believe cloud and software giants will generate enough incremental AI revenue to justify this level of investment. Aside from AI use cases, there are also competitive worries, especially since Nvidia is currently generating astronomically high margins. Not only are rivals Advanced Micro Devices (NASDAQ: AMD) and Intel (NASDAQ: INTC) coming out with new AI chips and open-sourced software in an attempt to break through Nvidia's CUDA software moat, but every cloud giant out there is also now making its own low-cost, in-house AI accelerators. But Nvidia could very well still defy skeptics It should be noted other economists aren't as pessimistic on AI. In fact, even another Goldman analyst, senior economist Joseph Briggs, disagreed with Covello, and believes AI-related cost-savings and revenue will be higher than Covello's forecast as the technology improves. Furthermore, Nvidia does have a powerful first-mover advantage that should still give it a large market share of AI computing, which should lead to growth even as more competitors come on to the scene. That is, of course, provided AI investment delivers returns for companies downstream. All in all, Huang's stock sales are not a reason to worry about Nvidia stock. But the uncertain proliferation of AI use cases and incoming competition are. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $791,929!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Billy Duberstein and/or his clients have positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Goldman Sachs Group, and Nvidia. 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Nvidia CEO Jensen Huang Sold $169 Million in Stock During the First Half of 2024. Time to Worry? | The Motley Fool

Are the sales a sign of overvaluation? Or just business as usual? The stock leading the markets up this year, and really for the past two years, has been Nvidia (NVDA 1.44%), which briefly became the most valuable company in the world in June before falling back to its close third-place position. As the stock made new highs, Nvidia CEO Jensen Huang, along with other Nvidia insiders, sold a substantial amount of stock in June -- and have continued selling this month. So, how should current Nvidia shareholders take these sales, and should they be worried? In June, Huang sold 1.3 million shares of Nvidia, bringing in $169 million worth to his personal wealth. The June sales were Huang's first sales of the year. In addition, other insiders sold $700 million worth of stock. Not only that, but since the calendar flipped to July, Huang has sold another 480,000 shares worth a little over $60 million, bringing his total 2024 sales to roughly 1.78 million shares worth $230 million. That's a lot of money. But is it reason for Nvidia investors to be worried? The sales in and of themselves shouldn't be much of a worry for shareholders. After all, Huang still owned over 934 million shares (split-adjusted) at the beginning of June. That means his June and July sales have only equaled 0.2% of his total holdings! So while the sales amount to a lot in dollar terms, they're not much to be worried about in terms of Huang's total net worth. In fact, given Nvidia's meteoric rise over the past 18 months, one would have probably expected Huang to cash out even more. Furthermore, Huang's sales have come as a result of a 10b5-1 trading program. This is a type of program that executives often make with brokerage houses to sell shares of their company's stock, up to a certain amount and at a pre-determined level. Often, there is a delay between when an executive announces the program and when the brokerage house starts trading shares. In this case, Huang actually adopted the 10b5-1 program on March 14, exactly three months before the first sales on June 13. The plan is scheduled to run through March 2025 and may have an upper limit of 6 million shares. So even after all of June and July's sales to date, there is still a majority of the plan's sales remaining. Even if the entire plan is sold through March 2025, that would still amount to less than 0.65% of Huang's ownership stake. While Jensen Huang's share sales are definitely not a reason to panic and sell Nvidia shares, there are a few risks to which shareholders should be paying attention. The first is the possibility AI investment doesn't keep up its torrid pace. In recent days, there have been reports suggesting the pace of AI spending could come to halt. In late June, Goldman Sachs' head of equity research Jim Covello put out a note saying the AI spending boom has many similarities with the dot-com bubble. Specifically, Covello doesn't believe the use cases for AI will result in revenues or cost savings that justify the current level of investment. He believes investors are pressuring companies to invest in or experiment with AI with "completely unclear" uses for the current AI technology. Similarly, around the same time, a partner at the famed venture capital firm Sequoia penned a blog post stating that he also doesn't believe cloud and software giants will generate enough incremental AI revenue to justify this level of investment. Aside from AI use cases, there are also competitive worries, especially since Nvidia is currently generating astronomically high margins. Not only are rivals Advanced Micro Devices (AMD -0.18%) and Intel (INTC 2.96%) coming out with new AI chips and open-sourced software in an attempt to break through Nvidia's CUDA software moat, but every cloud giant out there is also now making its own low-cost, in-house AI accelerators. It should be noted other economists aren't as pessimistic on AI. In fact, even another Goldman analyst, senior economist Joseph Briggs, disagreed with Covello, and believes AI-related cost-savings and revenue will be higher than Covello's forecast as the technology improves. Furthermore, Nvidia does have a powerful first-mover advantage that should still give it a large market share of AI computing, which should lead to growth even as more competitors come on to the scene. That is, of course, provided AI investment delivers returns for companies downstream. All in all, Huang's stock sales are not a reason to worry about Nvidia stock. But the uncertain proliferation of AI use cases and incoming competition are.

Nvidia CEO Jen-Hsun Huang sells over $31 million in company stock By Investing.com

In a recent move that caught the attention of investors, Jen-Hsun Huang, the President and CEO of Nvidia Corp (NASDAQ:NVDA), has sold a substantial amount of company stock, totaling over $31 million. The transactions, which took place on July 11 and 12, involved shares sold at prices ranging from $127.6962 to $136.00. The sales were conducted under a Rule 10b5-1 trading plan, which was adopted by Huang on March 14, 2024. This plan allows company insiders to set up a predetermined schedule for selling stocks at a time when they are not in possession of material non-public information, providing a defense against potential accusations of insider trading. The reported sales were executed in multiple transactions over the two days, with the prices per share reflecting a weighted average that varied for each batch of shares sold. The specific price ranges for the shares sold were as follows: from $127.07 to $127.98, $128.00 to $128.99, $129.00 to $129.98, $130.00 to $130.99, $131.00 to $131.97, $132.02 to $132.95, $133.04 to $133.99, $134.00 to $134.99, $135.00 to $135.90, and one set of shares sold at a flat rate of $136.00. Despite the large sale, Huang continues to maintain a significant ownership stake in Nvidia through direct and indirect holdings. According to the filing, Huang's direct ownership following the transactions includes over 79 million shares. Additionally, there are substantial indirect holdings through trusts and partnerships, such as the Jen-Hsun & Lori Huang Living Trust and J. and L. Huang Investments, L.P., among others. Investors often monitor insider transactions as they may provide insights into the executive's view of the company's future performance. However, sales under 10b5-1 plans are typically scheduled in advance and may not necessarily reflect any immediate concerns or expectations regarding the company's prospects. Nvidia, known for its graphics processing units (GPUs) for gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market, has been a significant player in the semiconductor industry. The company's strategic moves and financial performance remain areas of interest for investors and market analysts alike. In other recent news, Nvidia, a leading chipmaker, is under investigation by the French competition authority for potential anti-competitive practices. This probe aligns with a broader global scrutiny of big tech firms and their market practices. Meanwhile, Benchmark has raised its price target for Nvidia from $135.00 to $170.00, maintaining its Buy rating on the stock. The adjustment reflects Benchmark's confidence in Nvidia's ongoing dominance in the AI sector and its potential for revenue and earnings growth in the coming years. In parallel, Taiwan Semiconductor Manufacturing Co (TSMC), a major client of Nvidia, is expected to announce a substantial 30% surge in its second-quarter profit, driven by robust demand for AI chips. This anticipated profit increase is based on a LSEG SmartEstimate, aggregating predictions from 20 analysts. TSMC's significant rise in second-quarter revenue has already surpassed market expectations. These are among the recent developments surrounding Nvidia and related entities. As always, investors are advised to monitor these situations closely but refrain from speculation, focusing instead on verifiable facts and analyst prognostications. With Jen-Hsun Huang's recent stock sale of Nvidia Corp (NASDAQ:NVDA) making headlines, investors are keenly observing the company's financial metrics and market performance. Nvidia's robust position in the semiconductor industry is reflected in several key InvestingPro Data metrics. The company boasts a substantial market capitalization of $3150.0 billion USD, underlining its significant presence in the market. Nvidia's Price/Earnings (P/E) ratio currently stands at 74.16, which, while high, may be indicative of investor confidence in future growth prospects, particularly when considering the company's impressive revenue growth of 208.27% over the last twelve months as of Q1 2023. Adding to the financial picture, Nvidia's gross profit margin remains strong at 75.29%, suggesting efficient operations and a robust pricing strategy. These metrics, alongside the company's recent stock price movements, provide a comprehensive view of Nvidia's financial health and market valuation. Investors also look to InvestingPro Tips for deeper insights. Notably, Nvidia has a perfect Piotroski Score of 9, which suggests excellent financial health. Additionally, analysts predict sales growth in the current year, reinforcing the optimistic outlook for the company. For those seeking further analysis, there are 19 additional InvestingPro Tips available, which can be accessed with the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. These tips provide a more granular view of Nvidia's market position, including its valuation multiples and stock price volatility, which could be valuable for investors considering the company's long-term potential.

Nvidia director Stevens sells over $20 million in company stock By Investing.com

Nvidia Corp (NASDAQ:NVDA) director Mark A. Stevens has sold a significant portion of his holdings in the company, according to the latest SEC filings. The transactions, which took place on July 12, involved the sale of 156,023 shares of common stock at prices ranging from $129.75 to $129.94, with a weighted average price of $129.8146 per share. The total value of the shares sold amounted to approximately $20,254,063. Stevens, who is also a trustee of The 3rd Millennium Trust and the Envy Trust, conducted the sales indirectly through these trusts. It is noted that Stevens and his wife are co-trustees of The 3rd Millennium Trust, while he is the trustee of the Envy Trust. The nature of these transactions suggests a strategic adjustment to Stevens' investment in Nvidia, although the specific reasons for the sales were not disclosed in the filings. Following the transaction, Stevens still holds a substantial number of shares in the company. The remaining shares owned by Stevens, as reported in the SEC filing, are held indirectly through the mentioned trusts. The 3rd Millennium Trust holds 8,585,217 shares, and the Envy Trust holds an additional 17,251,950 shares, demonstrating that Stevens maintains a significant interest in Nvidia's performance. Investors often monitor insider transactions as they can provide insights into the executives' confidence in the company's future prospects. However, such sales are not uncommon and can occur for various reasons, including diversification, tax planning, or personal financial management. Nvidia, headquartered in Santa Clara, California, is a leading manufacturer of graphics processing units (GPUs) and has a broad presence in the semiconductor industry. The company has consistently been at the forefront of technological innovation, especially in areas like gaming, professional visualization, data centers, and artificial intelligence. The sale was officially filed with the Securities and Exchange Commission on July 15, with the transactions detailed in the Form 4 document. Interested parties can request full information regarding the number of shares sold at each separate price from the SEC, Nvidia, or directly from the reporting person, Mark A. Stevens. In other recent news, Nvidia, a leading chipmaker, is currently under investigation by the French competition authority for suspected anti-competitive practices. This development follows earlier predictions that Nvidia might face charges from the French antitrust regulator. Concurrently, Nvidia's shares have seen a significant surge, posing potential risks for concentrated portfolios. According to data from Morningstar, 355 actively managed funds reported positions of 5% or more of their assets in Nvidia at the end of the first quarter. On a different note, Taiwan Semiconductor Manufacturing Co (TSMC), a key supplier to Nvidia, is set to announce a 30% jump in its second-quarter profit, driven by robust demand for AI chips. The anticipated net profit for the quarter ending June 30 is projected to be T$236.1 billion ($7.25 billion), a significant increase from T$181.8 billion in the same period last year. In the meantime, Benchmark has raised its price target for Nvidia to $170.00 from $135.00, while maintaining its Buy rating on the stock. This adjustment is based on Benchmark's confidence in Nvidia's continued dominance in the AI sector and its potential for revenue and earnings growth in the coming years. These are the latest developments in the tech industry. In light of the recent insider transactions by Nvidia Corp (NASDAQ:NVDA) director Mark A. Stevens, InvestingPro data provides a broader context on the company's financial health and market performance. Nvidia's current market capitalization stands at a robust $3.15 trillion, reflecting its significant presence in the semiconductor industry. Despite the insider sales, Nvidia's financial metrics remain strong, with a substantial revenue growth of 208.27% over the last twelve months as of Q1 2025, indicating a rapidly expanding business. Moreover, the company's high gross profit margin of 75.29% during the same period suggests efficient operations and a solid competitive edge in its market segment. InvestingPro Tips highlight Nvidia's perfect Piotroski Score of 9, which points to a very healthy financial condition, and analysts are anticipating sales growth in the current year, underscoring the company's potential for continued expansion. These insights are particularly relevant for investors considering the implications of insider selling and the overall investment attractiveness of Nvidia. With these metrics in mind, investors may find additional value in exploring more tips on Nvidia, available through InvestingPro, where there are 19 additional tips listed for the company. For investors looking to delve deeper into Nvidia's financials and gain access to exclusive market insights, using the promo code PRONEWS24 can provide up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription to InvestingPro. This offer could be an excellent opportunity for those seeking comprehensive analysis and data to inform their investment decisions.

Nvidia EVP Ajay K. Puri sells over $13 million in company stock By Investing.com

Nvidia Corp (NASDAQ:NVDA) Executive Vice President of Worldwide Field Operations, Ajay K. Puri, has sold a significant portion of his stock in the company, according to a recent SEC filing. On July 12, 2024, Puri completed multiple transactions selling a total of $13,023,949 worth of Nvidia shares. The sales occurred at prices ranging from $127.76 to $131.40 per share. The transactions were executed under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which Puri had adopted on April 12, 2024. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time to avoid accusations of trading on non-public, material information. The SEC filing reveals that Puri sold shares in several separate transactions at varying prices. The first batch of shares was sold at a weighted average price of $127.76, with individual sales prices between $127.33 and $127.99. Another set of shares was sold at an average of $128.49, with prices ranging from $128.01 to $128.99. Subsequent transactions saw shares sold at average prices of $129.54 and $130.49, with the respective sales ranging from $129.00 to $129.99 and from $130.00 to $130.99. The final batch of shares was sold at an average price of $131.40, with individual sales prices from $131.00 to $131.89. Following these sales, Puri's remaining ownership in Nvidia is largely indirect, held by trusts where he serves as a trustee. The shares sold were held by the Ajay K. Puri Revocable Trust, and Puri's direct ownership following the transactions has been adjusted to reflect a ten-for-one forward split of Nvidia's common stock that took effect after the market closed on June 7, 2024. The SEC form 4 filing also notes that Puri disclaims beneficial ownership of the shares held by The Puri 2019 Irrevocable Children's Trust, except to the extent of his pecuniary interest therein, if any. Investors often monitor insider sales for signals about executives' confidence in their company's prospects. However, sales under Rule 10b5-1 plans are typically viewed as less indicative of insider sentiment, given their pre-arranged nature. In other recent news, Nvidia, the major chipmaker, is currently under investigation by the French competition authority for potential anti-competitive practices. The probe aligns with a broader global scrutiny of big tech firms and their market practices. In another development, Nvidia's shares saw a boost as Benchmark raised its price target for the company while maintaining its Buy rating. The firm anticipates that Nvidia's growth trajectory will remain strong, unaffected by the increasing pace at which its customers are developing their own silicon solutions. Meanwhile, Taiwan Semiconductor Manufacturing Co (TSMC), a client of Nvidia, is set to announce a significant 30% jump in its second-quarter profit due to robust demand for AI chips. The anticipated net profit for the quarter ending June 30 is projected to be T$236.1 billion ($7.25 billion), a notable increase from T$181.8 billion in the same period last year. These are recent developments and it's important to note that they do not provide a comprehensive view of the companies' financial health. The information provided is based on recent news items and analyst notes. Investors are advised to conduct their own research or consult with a financial advisor before making any investment decisions. Nvidia's recent insider sales have sparked interest among investors looking to understand the implications for the company's stock performance. According to InvestingPro, Nvidia boasts a perfect Piotroski Score of 9, indicating a very healthy financial condition, which could reassure investors about the company's fundamental strength despite insider sales. Additionally, analysts are predicting sales growth in the current year, which suggests that the company's business prospects remain robust. On the financial front, Nvidia's market capitalization stands at an impressive $3150.0 billion USD. The company has experienced substantial revenue growth over the last twelve months as of Q1 2023, with an increase of 208.27%. Furthermore, the gross profit margin is notably high at 75.29%, underscoring the company's efficiency in managing its cost of goods sold. These metrics underscore Nvidia's strong market position and operational effectiveness, factors that are essential for investors to consider. For those looking to delve deeper into Nvidia's financials and performance metrics, InvestingPro offers additional insights. There are 19 more InvestingPro Tips available, which could provide valuable information for making informed investment decisions. To access these tips and benefit from the full range of features, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.