Nvidia CEO Jensen Huang cashes out $1 billion as AI chip demand fuels massive stock rally
Nvidia Corp Chief Executive Jensen Huang has completed a previously planned massive stock sale, selling more than $1 billion worth of stock in the chip maker since June.
This massive stock liquidation, reportedly completed on Friday with the final sale of 25,000 shares, fulfilled a plan Huang adopted in March to sell up to six million shares by the end of this year.
The stock Huang sold was initially worth $865 million when the sales began in late June. But due to “unquenchable demand” for AI processors, the stock has since risen over 40%, pushing its final sales value to well over $1 billion. Bloomberg reported.
CEO cashes in on AI boom
The California-based company became the first company to reach a $5 trillion market cap on Wednesday after announcing new partnerships, just four months after the company surpassed the $4 trillion mark. This year alone, three new billionaires have emerged, including board member Brooke Seawell, who joined the ranks as shares soared in recent days.
Huang, 62, currently ranks ninth on the Bloomberg Billionaires Index with a fortune of $175.7 billion, having earned $61.3 billion this year alone.
The CEO retains a 3.5% stake in Nvidia, having sold more than $2.9 billion of company shares since 2001, according to Bloomberg calculations. In addition to the sales, this year he donated shares worth more than $300 million to his own foundation and a donor-advised fund.
Insider selling wave
Huang isn’t the only insider cashing in on the AI wave. Arista Networks Inc. CEO Jayshree Ullal surpassed Huang’s record by selling $861 million in stock, surpassing only Amazon.com Inc. as a top insider seller. He stood behind Chairman Jeff Bezos.
Nvidia resellers, including Huang, offloaded about $1.5 billion in inventory in the third quarter, according to Washington Service data. Nvidia insiders have sales of more than $2 billion in 2024, up from $462 million in 2023.
While many companies have benefited from the AI gold rush, Nvidia has stood out in the wealth-creation trend with the emergence of seven billionaires, including Huang.
Nvidia board member Tench Coxe recently joined the list of the world’s 500 richest people with a fortune of $7.5 billion. Fellow director Mark Stevens is ranked 247th with a fortune of $12.5 billion, consisting of Nvidia shares and partial ownership of the Golden State Warriors. Bloomberg reported.
