NVIDIA Corp (NASDAQ:NVDA) President and CEO Jen-Hsun Huang has recently sold a significant amount of company stock, totaling over $25 million. The transactions, which took place on September 4th and 5th, 2024, were executed within a price range of $104.6212 to $109.3024 per share.
The sales were conducted under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which was adopted by Huang on March 14, 2024. Such plans allow company insiders to sell shares at predetermined times to avoid accusations of trading on non-public information.
On September 4th, Huang sold shares in multiple transactions at varying prices. The prices ranged from a low of $104.6212 to a high of $108.5248, with individual sales amounts varying accordingly. These transactions continued into the following day, with shares being sold at prices from $104.88 to $109.3024.
Despite the large volume of shares sold, the transactions only slightly reduced Huang's holdings in NVIDIA. Post-transaction, Huang still holds a significant number of shares directly, and even more indirectly through trusts and partnerships. The direct holdings following the sales were reported to be 76,135,836 shares.
Investors often watch insider transactions as they can provide insights into executives' confidence in their company's future performance. However, the use of a 10b5-1 plan indicates that these sales were planned in advance and not necessarily indicative of the executive's current market outlook.
NVIDIA, headquartered in Santa Clara, California, is a leading technology company known for its graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SOCs) for the mobile computing and automotive market.
The company has not released any official statement regarding the CEO's stock sales at the time of this report.
In other recent news, Broadcom (NASDAQ:AVGO) Inc. experienced a significant drop in its shares following a disappointing revenue forecast. Despite an increased forecast for AI chip sales, the company's revenue from its broadband and non-AI networking divisions fell short of expectations. In parallel, Broadcom's shares were downgraded by J.P. Morgan analysts from "overweight" to "neutral."
OpenAI, the artificial intelligence research lab, is contemplating higher-priced subscriptions for its advanced language models. The potential pricing strategy emerges amidst reports that tech giants Apple (NASDAQ:AAPL) and Nvidia are exploring investment opportunities with OpenAI. The company's ChatGPT application has recently announced a significant milestone, with weekly active users reaching over 200 million.
Renowned activist short seller, Andrew Left, is scheduled to stand trial in September 2025 over fraud allegations involving claims of market manipulation and defrauding investors through misleading statements regarding his trading positions in various stocks, including technology companies Nvidia and Tesla (NASDAQ:TSLA). Left has entered a plea of not guilty to the charges.
These developments highlight recent occurrences in the business and investment world, providing a snapshot of the dynamic landscape.
InvestingPro Insights
NVIDIA Corp's (NASDAQ:NVDA) CEO Jen-Hsun Huang's recent stock sale comes at a time when the company displays a strong financial performance. According to InvestingPro data, NVIDIA boasts a remarkable gross profit margin of 75.98% over the last twelve months as of Q2 2025, highlighting the company's efficiency in managing its cost of goods sold relative to its revenue which stood at $96.31 billion, representing a staggering 194.69% growth. This robust growth and profitability are echoed in the InvestingPro Tips, which note that analysts anticipate sales growth in the current year and have revised their earnings upwards for the upcoming period, with 31 analysts signaling positive adjustments.
Despite the recent stock price volatility, with a 10.19% decline over the last week, NVIDIA remains a powerhouse in the Semiconductors & Semiconductor Equipment industry. The company's strong market position is further supported by a perfect Piotroski Score of 9, indicating top-tier financial health. Additionally, NVIDIA has maintained dividend payments for 13 consecutive years, with a recent dividend growth rate of 150.0%, underscoring its commitment to returning value to shareholders.
For investors considering the company's valuation metrics, NVIDIA is currently trading at a high earnings multiple with a P/E ratio of 47.95. This valuation suggests that investors are willing to pay a premium for the company's earnings potential and market leadership. For a deeper dive into NVIDIA's financial health and future outlook, investors can explore additional InvestingPro Tips, with a total of 22 listed on the platform, offering a comprehensive analysis of NVIDIA's market position and investment potential.
To access these insights and more, visit the dedicated NVIDIA page on InvestingPro: https://www.investing.com/pro/NVDA.
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