Internal sources at NVIDIA cashed out over $1.8 billion in stock this year, with more divestments on the way

Since the beginning of this year, along with the significant increase in NVIDIA's stock price compared to last year, internal personnel in the company have cashed out a total of over $1.8 billion in the stock market, with more cash-out operations expected in the future.

Data shows that NVIDIA executives and directors have collectively sold nearly 11 million shares of NVIDIA stock this year, making it the largest scale of selling since at least 2020 after taking into account the impact of stock splits:

• In September, CEO Jensen Huang executed the sale of NVIDIA stock in this round through a 10b5-1 trading plan. He sold stocks from June 14th to September 13th at an average price of $118.83 per share, selling a total of 6 million shares for $713 million. Huang's NVIDIA stock sale plan is valid until March 2025, but he completed all planned sales six months before the expiration date.
• NVIDIA director Mark Stevens has already sold 1.6 million shares of stock this year and disclosed a plan to sell another 3 million shares.

However, it should be noted that the overall cash-out scale as a percentage of NVIDIA's outstanding shares is still very small. Jensen Huang still holds NVIDIA stock worth over $100 billion.

Analysts believe that the cash-out by internal personnel may raise concerns for investors considering whether to buy NVIDIA stock now. In addition, the sustainability of large tech companies' high investment in artificial intelligence also worries the market. However, some analysts point out that in the long run, the CEO's buying and selling of stocks do not have a close correlation with stock performance.

This week, Jensen Huang stated that NVIDIA's Blackwell architecture chips have been fully put into production, with a crazy demand for Blackwell. This led NVIDIA to outperform the overall US stock market on Thursday, closing up more than 3.3%