Nvidia shares saw a notable increase on Tuesday after CEO Jensen Huang concluded a planned sale of company stock worth more than $700 million.
This sale was part of a prearranged trading plan initiated under the SEC’s 10b5-1 rule, which allows company insiders to sell shares according to a preset schedule. Huang reached the limit set by this plan ahead of schedule, completing the sale months before its intended expiration in early 2025.
Huang initially laid out a plan in mid-March to sell up to six million Nvidia shares by the end of the first quarter of 2025. However, a flurry of sales between June and September allowed him to meet this target earlier than anticipated. Despite these sales, Huang retains a significant stake in the company, holding 75.4 million Nvidia shares directly, with an additional 786 million shares held through trusts and partnerships.
The announcement appeared to have a positive impact on Nvidia’s stock, which rose by more than 4% following the news. Nvidia, a major player in the artificial intelligence sector, has benefited greatly from the AI boom. The company’s stock has surged over 140% this year, briefly pushing its market capitalization to nearly $3 trillion earlier in 2023.
Nvidia’s dominance in the AI chip market has solidified its position as a leader in the tech industry, with major clients like Microsoft, Meta, and Alphabet. Despite requests for comment, Nvidia declined to provide additional information on Huang’s completed stock sales.
The surge in Nvidia’s stock comes amid broader market gains, driven by the company’s strong performance in AI and the technology sector’s growing influence on investor sentiment.
With input from CNBC, Benzinga, and Investopedia.
