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Nvidia president and CEO sells over $25 million in company stock

Published 11/09/2024, 08:56 am
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NVDA
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In a recent series of transactions, Jen-Hsun Huang, the President and CEO of Nvidia Corp (NASDAQ:NVDA), sold shares of the company's stock valued at over $25 million. The sales occurred on September 6 and September 9, according to the latest filings with the Securities and Exchange Commission.


Huang sold a total of 159,774 shares in multiple transactions at prices ranging from $100.99 to $108.00. Following these sales, Huang's direct ownership in Nvidia stands at 75,895,836 shares.


The transactions were executed under a pre-arranged 10b5-1 trading plan, which allows company insiders to sell stocks at predetermined times to avoid accusations of insider trading. This plan was adopted by Huang on March 14, 2024.


Nvidia, a leading technology company known for its graphics processing units, has not made any official statement regarding these transactions. The sales are part of routine trading activities by corporate executives, which can be influenced by a variety of personal financial considerations.


Investors often monitor insider sales for insights into executive confidence in the company's future performance, although such sales do not necessarily indicate a change in company prospects.


Jen-Hsun Huang's role as a significant insider and leader within Nvidia makes his trading activities of particular interest to investors and market watchers. Despite the recent stock sales, Huang maintains a substantial stake in the company through direct and indirect holdings.


The details of the transactions are publicly available and provide transparency into the trading activities of Nvidia's top executive. The SEC filing also includes footnotes indicating the specific price ranges for the shares sold, which can be made available upon request by the SEC, Nvidia, or any of its security holders.


In other recent news, data center operator Switch (NYSE:SWCH) is exploring the possibility of an initial public offering (IPO) that could value the company at around $40 billion. This development comes amid a surge in demand for data infrastructure due to the growing interest in artificial intelligence. Switch, which counts industry leaders such as Nvidia and Dell Technologies (NYSE:DELL) among its customers, was taken private in 2022 in a deal valued at $11 billion.


In analyst news, Citi has reaffirmed its Buy rating on Nvidia, noting an increase in the company's GPU revenue share in gaming. However, Nvidia's data center GPU revenue share witnessed a decrease. Notably, the company's shares fell recently as part of a broader sell-off in the technology sector.


On Wall Street, the U.S. stock market experienced a significant downturn following the release of recent jobs data, which indicated a slowdown in labor market momentum. This has led to speculation regarding the Federal Reserve's next moves, with some analysts suggesting a more aggressive 50 basis point cut later this month.


In other company news, Broadcom (NASDAQ:AVGO)'s shares fell after projecting fourth-quarter revenue below estimates due to reduced spending in its broadband segment. Additionally, Super Micro Computer (NASDAQ:SMCI)'s shares declined following a downgrade by J.P. Morgan analysts from "overweight" to "neutral." These are the recent developments in the market.


InvestingPro Insights


As Nvidia's CEO Jen-Hsun Huang adjusts his stake in the company, investors are keenly observing the financial health and future prospects of Nvidia Corp (NASDAQ:NVDA). According to the latest data from InvestingPro, Nvidia exhibits robust financial metrics that could be of interest to shareholders and potential investors.


InvestingPro data highlights Nvidia's impressive revenue growth over the last twelve months as of Q2 2025, with a staggering increase of 194.69%. This significant expansion in revenue is coupled with a high gross profit margin of 75.98%, reflecting the company's efficiency in managing its cost of goods sold and asserting its pricing power in the market. Moreover, the company's operating income margin stood at a healthy 61.87%, indicating strong operational performance.


Among the InvestingPro Tips, two key insights stand out: Nvidia has a perfect Piotroski Score of 9, suggesting the company is in top financial health, and analysts have revised their earnings estimates upwards for the upcoming period, signifying positive sentiment regarding Nvidia's future earnings potential. Additionally, there are over 20 additional InvestingPro Tips available, which provide a comprehensive analysis of Nvidia's financial and market position.


The company's stock price movements have been quite volatile, which is a common characteristic of the technology sector and reflects market sensitivity to both industry trends and company-specific developments. Despite this volatility, Nvidia maintains a strong market capitalization of $2650.0 billion USD, underscoring its significant presence in the industry.


For those interested in a deeper dive into Nvidia's financials and market performance, more InvestingPro Tips can be found at: https://www.investing.com/pro/NVDA. These insights may prove invaluable for understanding the broader context of Jen-Hsun Huang's recent stock sales and Nvidia's investment potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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