Amidst the continuous decline of Nvidia's stock price, CEO Huang Renxun has been gradually selling the company's stocks, which further exacerbates investors' concerns. As of Friday's closing, the company's stock fell more than 4%, to $102.83.
A total of approximately $633 million has been cashed in.
On Thursday, the documents submitted by Nvidia to the U.S. Securities and Exchange Commission showed that Huang Renxun is selling Nvidia's stocks at a rate of 1.2 million shares per trading day.
From June 13 to September 5, in a total of 44 trades, Huang Renxun sold a total of 5.28 million shares, cashing in approximately $633 million.
This is part of Huang Renxun's 10b5-1 trading plan initiated in March this year, in which he plans to sell no more than 6 million shares by March 31, 2025.
The 10b5-1 trading plan allows insiders of listed companies to buy and sell stocks based on pre-set prices, trading quantities, and sale dates. Its significance lies in providing a legitimate mechanism for company insiders to avoid being accused of insider trading.
According to FactSet's data, Huang Renxun is the largest individual shareholder of Nvidia. As of August 9th, he holds approximately 3.5% of the company's outstanding shares.
Some market analysts believe that Huang Renxun may be making this move for personal financial planning reasons. By selling stocks, he can achieve financial freedom or reduce reliance on the company's performance.
However, from a market perspective, executive shareholding reductions are generally seen as bearish news. Since Huang Renxun began selling stocks at the peak of Nvidia's stock price, it is also seen as a "selling at the top" behavior.
There is continuous bearish news.
Recently, Nvidia has been frequently hit by bearish news.
On September 3rd, it was reported that the US Department of Justice launched an investigation into Nvidia. This investigation mainly focuses on two aspects: the acquisition of Israeli AI startup Run:ai by Nvidia, and the evaluation of whether Nvidia has abused its market dominance in the AI chip field to prevent customers from using competitor products.
This news caused panic in the market, leading to a market cap loss of nearly 2 trillion RMB for Nvidia, setting a record for the highest single-day market cap loss in US stock market history.
On the other hand, Nvidia's latest earnings guidance released on the 28th is also "not very optimistic."
The report shows that in the second quarter of the 2025 fiscal year, the company's total revenue reached $30.04 billion, an increase of 15% compared to the previous quarter and a 122% increase compared to the same period last year, far exceeding the expected $28.7 billion. Adjusted earnings per share were $0.67, a year-on-year increase of 152%.
Nvidia expects its revenue for the third quarter of the 2025 fiscal year to reach approximately $32.5 billion, which is higher than the average analyst's expectations but lower than the most optimistic expectation of $37.9 billion.
Due to its revenue guidance for the next quarter failing to meet market expectations, Nvidia's stock price plummeted more than 8% after hours.
Previously, there was news that the mass production time of Nvidia's new AI chip, Blackwell B200, had been delayed. The chip was originally planned to begin mass production in October this year, but due to design flaws, the release and delivery may be delayed for three months or longer, until the first quarter of 2025. This may have a direct impact on Nvidia's quarterly earnings.
In addition to increased global economic uncertainty, the emergence of competitors, and the long investment return cycle of artificial intelligence, investors are becoming increasingly concerned about Nvidia's future prospects. The company's stock price has already fallen more than 13% since September.
Editor/Emily