Jensen Huang to offload $800 million in Nvidia stock — is the AI king sensing a storm ahead?
Jensen Huang, Nvidia's CEO, plans to sell six million shares. This move worries investors despite Nvidia's growth. Huang holds a large stake, and the sale is part of a pre-arranged plan. This plan helps avoid insider trading concerns. Huang remains optimistic about Nvidia's future in AI. The company sees rising demand and expects growth in AI inference.
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Is Jensen Huang Sensing Trouble or Just Playing It Smart?
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Nvidia CEO Jensen Huang , who is also the founder of the company launched in 1993, recently revealed a shocking plan that has raised investor concerns, as per a report.Huang, who has led the AI chipmaker to its top position and will continue to guide it in the next phase of AI boom, recently shared that he will sell 6 million Nvidia shares, which at the current price will be around $810 million, as per The Motley Fool.While, Nvidia's stock has risen 1,400% in the past five years, which makes it a winner for investors who held on for the long term, as per The Motley Fool. But Huang's plan has made investors worried that this is a sign of trouble ahead and that share performance may dip, according to the report.ALSO READ: Italy's Mount Etna volcano erupts, triggering aviation alert as tourists flee for their lives — 10 key points However, the CEO has played an important role in the firm's success over the long term, and has shown optimism even during the latest earnings call, as he said Nvidia is "off to the races," which is a sign that the chipmaker is in the early stages of its AI growth story, reported The Motley Fool.Nvidia has also been posting several quarters of double- and triple-digit revenue growth, and it has continued in the first quarter of this fiscal year, as per the report. The AI chipmaker also continues to see rising demand for its new Blackwell architecture and expects that the area of AI inference will be a huge growth driver, reported The Motley Fool.According to The Motley Fool, all this leads to an important question, "why would Huang sell shares?"To understand that, it's essential to know that as of the close of the recent fiscal year, Huang held over 922 million Nvidia shares, which is just over 3.7% of the company, as per Nvidia's fiscal 2025 annual report, reported The Motley Fool. So that means that the six million shares he has planned to sell is actually not a big portion of his entire holding, as per the report.Another important fact is that the CEO's sale is not something which was recently decided for any specific reason, rather, it is part of a regular plan that allows Nvidia insiders to periodically sell shares, reported The Motley Fool. The selling is done under a Rule 10b5-1 plan , where the sales are predetermined so that buying or selling activity would not be considered insider trading, according to the report. "The idea is insiders can buy or sell at a particular time, prepared ahead and when they don't have access to material non-public information," wrote The Motley Fool. The agreement was adopted in March and will expire on December 31, 2025, as per the report.This is not the first time that Huang or the other Nvidia executives have sold shares under these plans as it is a process to lock in some profits from time to time because maybe they want to "pay bills or want to reallocate cash into other investments," according to The Motley Fool.No. In fact, he's publicly said Nvidia is "off to the races," signaling strong optimism about the company's AI growth.It's a legal plan that lets executives sell shares on a set schedule, helping avoid insider trading concerns, as per the report.
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