Nvidia Insiders Sell $1 Billion In Shares

By Douglas A. McIntyre Published Jun 29, 11:40AM EDT

Nvidia Insiders Sell $1 Billion In Shares — © Public Domain / Wikimedia Commons

There was a great deal of comment when Nvidia (NASDAQ: NVDA | NVDA Price Prediction) CEO Jensen Huang filed to sell as many as $900 million in shares in a preapproved plan in an SEC disclosure. However, taken together, senior management and board members will sell well over $1 billion in shares according to data from the same federal data as analyzed by the FT.

Insiders have picked what is probably the best time in Nvidia’s history for the transactions. The company is the most valuable in the world with a market cap of $3.84 trillion. The stock is up over 1,600% in the last five years.

Additionally, Nvidia revenue growth has been about 60% quarter over the same quarter last year. Based on its own short term revenue forecast, it will keep up that pace.

Nvidia is also the only game in town when it comes to the world’s most powerful AI chips. By some estimates its market share is 92%. The one place it is locked out of for the time being is China. That could cost $50 billion. Huang told CNBC, “China is a very large market. It’s probably going to be a $50 billion market in the next couple or three years. It’ll be a tremendous loss not to address it as an American company.” The comment caused the stock to sell off until Huang said Nvidia’s revenue would not be greatly affected because the global market for AI chips is growing so quickly.

The FT analysis shows former board member Mark Stevens has disclosed he will sell as many as $550 million in shares. Nvidia’s executive vice-president of worldwide field operations, Jay Puri, has sold $25 million worth. Sales by other board members and officers could total another $200 million.

The sell offs are not unusual. Companies which have produced results that make shares surge in price allows people who are long time contributors to success get a reward by taking some of their gains off the table

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.