Nobody can accuse Jensen Huang, co-founder and CEO of Nvidia, of playing small ball. Last year, he cashed in by selling more than $700 million of his company’s shares. Currently, Huang’s wealth is worth an estimated $138 billion, making him the 11th richest person according to the Bloomberg Billionaires Index. His planned stock liquidations move into high relief despite Nvidia’s remarkable success as a technology leader. It’s not an accident that the company recently retook its mantle as the world’s most valuable company — overtaking both Microsoft and Apple.
In March, Huang revealed in a prearranged share sale to investors. He has announced plans to unload as much as 6 million shares by New Year’s Day. Implementation of this plan has already resulted in his recent divestment of about $15 million in shares. These sales hardly seem like a coincidence, just as Nvidia’s stock price began its meteoric climb above $150, triggering even more sell-off. A detailed analysis from VerityData shows that this increase in share price came just amidst this broad market run up. As a result, against the backdrop of an increasingly unpredictable global economy, Nvidia further solidified its dominance.
In the intervening month, Nvidia has shamed a half billion in stock buybacks. This boom has driven a whopping 44% increase in its share price in just the past three months. The company’s stock has sky-rocketed over 17% this year. This remarkable increase underscores its tenacity amid continued headwinds that remain in the tech industry, such as fears of a new round of AI chip sale restrictions to foreign markets.
During the recent annual shareholder meeting, Huang emphasized robotics as a significant opportunity for Nvidia, second only to artificial intelligence. This focus on emerging technologies aligns with the company’s mission to lead in innovative sectors and respond to evolving market demands.
Unfortunately for Huang’s stock activities, they only work in a booming market. While geopolitical tensions continue to slide, investors are catching their confidence back. The five-day rally following Nvidia’s record stock prices indicates a robust appetite for the company’s shares, suggesting that investor sentiment remains strong despite regulatory uncertainties.