Over the past year, NVIDIA (NVDA, Financial) insiders, including CEO Jensen Huang, have sold more than $1 billion in company stock. In June alone, sales exceeded $500 million. This wave of selling coincides with NVIDIA's stock reaching record highs. The company's shares have rebounded over 60% from their April lows, driven by renewed investor interest in artificial intelligence and positive trade policy sentiment, briefly reclaiming the top spot among global publicly traded companies by market capitalization.
This week, Jensen Huang resumed selling shares for the first time since September last year. Under a pre-approved trading plan sanctioned by the U.S. Securities and Exchange Commission (SEC) in March, he can sell up to 6 million shares this year while retaining most of his holdings. Despite executives cashing in during this AI-driven rally, investors may interpret the insider selling as a sign of confidence in the current high valuations.
The ongoing insider trading activity, coupled with record-breaking stock prices, underscores NVIDIA's central role in the rapidly growing AI chip market.
