Nvidia Insiders Unload Shares Worth Billions Amid AI Spending Concerns
In a move that’s sparking unease among investors, top executives and directors at Nvidia Corp. have sold off a staggering $1.8 billion worth of shares so far this year. The massive sell-off, which represents a tiny fraction of the company’s 24.5 billion outstanding shares, comes at a time when investors are growing increasingly anxious about the delayed release of Nvidia’s Blackwell chips and the sustainability of artificial intelligence-related spending.
According to data compiled by the Washington Service, nearly 11 million shares have changed hands, with Chief Executive Officer Jensen Huang leading the charge. Huang’s pre-arranged trading plan, adopted in March, has seen him offload around $713 million worth of shares between June and September, a period marked by a 5% decline in Nvidia’s stock price.
Other top sellers include director Mark Stevens, who has filed to sell an additional 3 million shares on top of the 1.6 million he sold earlier this year, and fellow director Tench Coxe, who has parted with shares worth around $525 million. The flurry of insider selling has raised eyebrows, with some analysts cautioning that it may deter new investors from buying into the company.
However, experts are quick to point out that pre-planned sales, like Huang’s 10b5-1 plan, are not necessarily a sign of bearishness. “CEOs selling shares doesn’t necessarily mean they’re pessimistic about the company’s prospects,” notes Ken Mahoney, CEO of Mahoney Asset Management. “In fact, it’s often the opposite – they’re confident in the company’s growth potential.”
Despite the insider selling, Nvidia’s stock has shown remarkable resilience, bouncing back from two drawdowns of over 20% since June. The company’s market capitalization briefly surpassed that of Microsoft Corp. and Apple Inc. earlier this year, and its shares remain just 10% shy of their June peak.
As the tech giant prepares to release its Blackwell chips, investors will be watching closely to see if the company can deliver on its promise of several billion dollars in sales in the fourth quarter. One thing is certain – with more insider selling on the horizon, all eyes will be on Nvidia’s performance in the coming months.
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