Huang Renxun reduced his shareholding in the company by nearly $169 million in June, which was his largest monthly reduction. Since the beginning of 2020, including the sales in June, Huang Renxun has cashed out nearly $1.1 billion in stocks according to data.
According to reports, Jensen Huang, the CEO of NVIDIA, sold nearly $169 million worth of the company's stock in June, the most he has sold in a single month. The huge demand for chips used to drive artificial intelligence (AI) has pushed NVIDIA's stock price to new highs. As for the product structure, the operating income of products worth 10-30 billion yuan is 401/1,288/60 million yuan respectively.
According to documents filed with the US Securities and Exchange Commission (SEC), this is Huang Renxun's first month of selling 1.3 million shares during this year. It is estimated that these shares have a total value of nearly $169 million, setting a new record for his personal month-end stock sales. The documents show that this series of transactions was executed under the "10b5-1 Rule Trading Plan" adopted in March.
It was precisely during this month that NVIDIA's stock price skyrocketed, with a market value stable above 3 trillion US dollars, surpassing Apple, Microsoft and other companies to become the world's number one. NVIDIA's dominant position in the high-end accelerator market has made it one of the biggest beneficiaries of the AI boom. As of Wednesday's close in the US stock market, their stock rose by 4.57% to $128.28. Its rise this year has reached 166.31%.
At the same time, Huang Renxun's net worth has more than doubled in the past six months ($63.7 billion), and he now ranks 13th on Bloomberg's Billionaires Index with a wealth of $107.7 billion.
Data shows that since the beginning of 2020, including the June sell-off, Huang Renxun has liquidated nearly $1.1 billion in stocks. Other documents show that he plans to continue selling in July. In addition, other NVIDIA executives, including Executive Vice President Deborah Shoquist and CFO Colette Kress, have also sold their shares and cashed out.
According to data from Washington Service, excluding the impact of the 1-for-10 stock split on June 10th, NVIDIA's executives and directors have sold approximately 770,000 shares of stock, cashing out for more than $700 million. Since NVIDIA announced its Q1 performance on May 22nd, more than one-third of insiders have chosen to sell their shares, setting a new record for years.
In fact, Huang Renxun announced his sell-off plan at the end of March this year. At the time, NVIDIA mentioned in its earnings report that Huang Renxun would sell up to 600,000 shares of stock through the 10b5-1 stock sale plan before the end of March 2025.
This "10b5-1 Plan" is a rule enacted by the SEC under the Securities Exchange Act of 1934 in October 2000.
The plan allows insiders to set up a trading plan in advance and make advance plans for the sale and purchase of stocks, strictly implementing the trading plan to prove that they have not used insider information in the transactions. In the event of insider trading allegations, traders can use this rule to argue actively.
Analysts claim that the stocks sold are part of Huang Renxun's executive compensation, which includes restricted stock units (RSUs) and performance stock units (PSUs), which is a common practice for CEOs of companies that comply with regulations.