NVIDIA Stock Surges Amid AI Boom and CEO Stock Sales

Nvidia Stock Is Ripping Higher Tuesday: What's Going On? - NVIDIA (NASDAQ:NVDA)

Huang reportedly sold shares at prices ranging from $91.72 to $140.24, grossing approximately $713 million from the sales. NVIDIA Corp NVDA shares are shooting higher Tuesday. The stock appears to be moving on reports that CEO Jensen Huang has finished selling company stock under a trading plan. What To Know: Huang adopted a Rule 10b5-1 trading plan earlier this year. According to a Barron's report, the Nvidia CEO has completed selling the maximum number of shares under the plan several months early. The trading plan was slated to be effective through March 2025, but the report indicates that Huang sold all six million shares six months before the planned expiration. Huang reportedly sold shares from June 14 through Sept. 13 at prices ranging from $91.72 to $140.24, grossing approximately $713 million from the sales. The stock sales came from a personal account that still has about 75.4 million Nvidia shares remaining. The Nvidia CEO also reportedly owns 786 million shares through trusts and partnerships. Huang is Nvidia's largest shareholder with a 3.8% stake in the company as of March. See Also: ANSYS, Taiwan Semiconductor, Microsoft Team Up To Supercharge Next-Gen Chip Simulations The stock sales come with Nvidia shares up more than 140% year-to-date after more than tripling last year, driven by the company's positioning in the artificial intelligence (AI) space. Nvidia reported revenue growth of 122% year-over-year in its most recent quarter and guided for continued growth on the back of strong demand for AI. "NVIDIA achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI," Huang said. "Generative AI will revolutionize every industry." NVDA Price Action: Nvidia shares opened Tuesday higher before moving lower in early trading. The stock reversed course shortly after the Barron's article came out and is now up 4.14% for the day, trading around $121.07 at the time of publication, per Benzinga Pro. Photo: Shutterstock. Market News and Data brought to you by Benzinga APIs

Here's How Much Nvidia Stock CEO Jensen Huang Has Sold Lately

The chipmaker's shares surged nearly 4% Tuesday and have more than doubled in value since the start of the year amid booming demand for artificial intelligence infrastructure. Nvidia (NVDA) CEO Jensen Huang concluded a planned sale of more than $700 million worth of company stock, regulatory filings Tuesday showed. Huang had previously announced his intention to sell as many as 6 million shares of Nvidia by the first quarter of 2025 under the Securities and Exchange Commission's (SEC's) 10b5-1 rule, which allows insiders to set up a trading plan for selling stocks. He reached that limit months ahead of the plan's expiration, with the sale of 120,000 shares worth nearly $14.3 million, according to an SEC filing. The CEO still holds 75.4 million Nvidia shares directly and another 786 million through various trusts and a partnership, according to another filing. Shares of Nvidia closed nearly 4% higher at $120.87 Tuesday. They've more than doubled in value since the start of the year amid booming demand for the company's chips to support artificial intelligence (AI).

Why Nvidia Stock Rallied on Tuesday | The Motley Fool

The catalyst that sent the chipmaker and artificial intelligence (AI) specialist higher were reports that the company's chief executive was done selling stock for now. CEO Jensen Huang has sold a large block of Nvidia stock in recent months, a move that caught the attention of investors. In all, he sold roughly 6 million shares worth roughly $713 million as part of a prearranged stock trading plan put in place earlier this year. The sales were made pursuant to a 10b5-1 plan, which allows insiders to sell stock in the future according to a predetermined schedule without running afoul of insider trading rules. In more than four dozen transactions over the past three months, Huang divested 6 million shares, reaching the limit set up in the prearranged plan, suggesting the chief executive was done selling Nvidia stock -- at least for now. Some investors tend to get nervous when insiders sell stock, particularly in large quantities. Rumors that "they know something we don't" or "the stock has peaked" tend to make the rounds. However, there are plenty of reasons to sell stock, especially if it makes up a large part of an executive's compensation package. That's certainly the case with Huang, as 96% of his total pay is stock options tied to Nvidia's overall stock performance. As a result, and in order to reap the rewards of successfully navigating the stock to new heights, Huang and other executives must sell stock, so there's nothing concerning or nefarious about these sales. Furthermore, Huang is still the largest individual holder of Nvidia stock. According to the company's most recent proxy statement, Huang controlled more than 93 million shares, or more than 3.75% of the outstanding stock. This alone suggests that Huang is still confident in Nvidia's future prospects.