Jensen Huang continues to reduce his stake in NVIDIA: cashing out over $500 million in the past 2 months
Jensen Huang continues to reduce his stake in NVIDIA by over $500 million, while company executives and directors have sold over $700 million worth of shares. Analysts believe that there is a significant bubble in artificial intelligence
Since 2024, NVIDIA's stock price has been continuously rising, with a market value exceeding 3 trillion US dollars at one point, even surpassing Microsoft and Apple to become the company with the highest market value globally.
During the continuous increase in NVIDIA's market value, NVIDIA's founder and CEO Jensen Huang has been continuously selling company shares.
Documents show that Jensen Huang sold 120,000 shares on each trading day of June 13, 14, 17, 18, 20, 21, 24, 25, 26, 27, 28, July 1, 2, 3, 5, 8, 9, 10, 11, 12, 15, 16, 17, 18, 19, 22, 23, 24, 25, 26, 29, 30, 31 in 2024.
Since August 2024, Jensen Huang has not stopped selling shares.
Jensen Huang continued to sell NVIDIA shares on August 1, 2, 5, 6, 7, 8, 9, selling 120,000 shares each day, cashing out between 11.98 million to 13.56 million US dollars each day.
Jensen Huang has sold shares for 42 trading days, totaling 5.04 million shares. Calculated conservatively at cashing out 12 million US dollars per day, Jensen Huang has cashed out over 500 million US dollars in 2 months.
Jensen Huang is not the only insider selling stocks.
In the first half of 2024, company executives and directors sold stocks worth over 700 million US dollars, exceeding any other period in the company's history.
There is a huge bubble in artificial intelligence
Currently, including giants like Microsoft and Meta, many are making large purchases of NVIDIA chips.
Reports show that over 40% of NVIDIA's revenue comes from some familiar names in the "Big Seven" stocks - Microsoft, Meta, Alphabet, and Amazon.
Meta has placed orders worth at least 100 billion US dollars, and Microsoft has increased its order size by 20% in recent weeks. Microsoft plans to prepare 55,000-65,000 GB200 chips for OpenAI by Q1 2025.
However, NVIDIA recently revealed that the AI chip it is about to launch will be delayed by three months or longer due to design flaws, and Blackwell's large-scale production may be delayed until the first quarter of next year This may affect customers such as Meta Platforms, Google, and Microsoft, who have collectively ordered chips worth billions of dollars.
Blackwell can be described as the "moonlight" in the hearts of tech companies, carrying the high hopes of giants. If the upcoming AI chips like B100, B200, GB200 are delayed for three months or even longer, NVIDIA's customers will really have to worry.
What's more worrying for investors is that giants have made huge investments in the field of artificial intelligence, but the returns are still a long way off. A fund manager said, "Wall Street doesn't have much patience. They see you spending billions of dollars and they expect to see an increase in revenue. If these companies' performance does not meet expectations or does not far exceed expectations, they will be hit."
Some investors also say that many assumed uses of artificial intelligence "will never be cost-effective, will never play a real role, will only consume too much energy, or will be proven unreliable."
Author: Lei Jianping, Source: Lei Di, Original Title: "Jensen Huang Continues to Reduce NVIDIA Equity: Cashing Out Over $500 Million in 2 Months"