Nvidia (NASDAQ:NVDA) CEO Jensen Huang has sold a portion of his shares in the company, netting a total of $26.9 million over two days in September, according to filings with the Securities and Exchange Commission (SEC). This follows an earlier sale this month when Huang sold approximately $42 million worth of stock after exercising options. Despite these sales, Huang's total share ownership did not decrease since the shares were acquired through options granted as part of his executive compensation plan.
As of today, Nvidia's share price has dipped more than 3% since its Q2 earnings release, despite the company's strong performance and an outstanding second-quarter report that surpassed Wall Street expectations. The report revealed record-breaking sales and earnings beats for Nvidia. While analysts had predicted earnings per share of $2.09 on sales of $11.22 billion, Nvidia outperformed these estimates with per-share earnings of $2.70 on sales of $13.51 billion.
The company also projected revenue of around $16 billion for the current quarter, significantly higher than the average analyst estimate of $12.61 billion. However, Nvidia’s stock performance could be affected by various macroeconomic factors, including concerns about inflation and interest rates, the possibility of a looming recession, and rising bond yields. Additionally, ongoing tensions between the U.S. and China could also influence the company's share price.
Despite these recent sales, Huang remains the largest individual shareholder in Nvidia (NASDAQ:NVDA). As of April 3, Huang owned 86,878,193 shares of Nvidia stock, equating to a 3.5% ownership stake in the company. This places him ahead of investment firms Vanguard, BlackRock (NYSE:BLK), and Fidelity Investments which hold 8.3%, 7.3%, and 5.6% respectively.
While Huang's recent stock sales may raise eyebrows, they represent a minuscule portion of his total holdings in Nvidia. Despite these sales, Huang remains heavily invested in Nvidia, suggesting confidence in the company's future prospects.
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