Nvidia CEO Jensen Huang sold stock again before the crash, cashing out $500 million in two months

Bloomberg reported that Nvidia's CEO, Jensen Huang, sold $323 million of his own stock in July before the share price decline, setting a personal record for the highest monthly cash-out, accumulating nearly $500 million in stock sales over the past two months.

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Understanding AI and Trading? Huang Renxun Sold $323 Million Nvidia Shares in July

Reports indicate that Huang Renxun sold $322.7 million worth of Nvidia shares in July, following a significant sell-off in June, totaling nearly $500 million in sales over the two months.

As part of Huang Renxun's 10b5-1 stock selling plan set in March this year, it is reported that he is expected to sell up to 600,000 shares of Nvidia stock by the end of March 2025.

It is worth mentioning that the timing of these stock sales coincided with concerns of a potential global economic downturn, leading to a general decline in tech stocks. Nvidia's stock fell 14% over the past three trading days, dropping more than 23% from recent highs.

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On Monday, global stock markets faced a massacre due to weak economic data, disappointing Q2 earnings from tech companies, and the unwinding of yen carry trades, leading to heavy investor panic and selling pressure across capital markets from Asia and the U.S. to Europe.

Nvidia Executives Have Sold Over $1 Billion in Shares Since the Beginning of the Year

In addition to Huang Renxun, Nvidia board member and the company's second-largest shareholder Mark Stevens, as well as global operations executive vice president Jay Puri, sold $125 million and $10 million worth of shares, respectively, in July.

Since the beginning of this year, Nvidia insiders have cashed out over $1 billion in shares, with Huang Renxun having sold around $1.4 billion in shares since 2020 and planning to continue reducing his Nvidia holdings in August as per the original plan.

Last year, there were discussions on whether insider trading exists in U.S. corporate stock sales. However, the U.S. Securities and Exchange Commission (SEC) has strict regulations for company insiders selling shares, with plans to sell shares needing to be established or modified three months in advance and submitted to the SEC.

Huang Renxun's Net Worth Evaporates $5.9 Billion in Recent Weeks

In mid-June, Nvidia's market value surpassed $333.5 billion, overtaking Microsoft and claiming the global market value crown.

However, due to the sluggish U.S. July employment data and international geopolitical turmoil leading to a significant global stock market downturn, Huang Renxun's net worth shrank by $5.9 billion in recent weeks as Nvidia's stock price fell, dropping him to 16th place with assets totaling $88.4 billion.

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On the other hand, one of Nvidia's competitors, AMD, released impressive Q2 earnings at this time, challenging Nvidia's dominance with advancements in flagship products and aggressive acquisitions of startups.

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