NVIDIA CEO Jensen Huang Sells $39 Million in Shares Amid Company's Record Growth

NVIDIA CEO Jensen Huang sold 202,797 shares of the company's stock for $39.16 million, part of a pre-scheduled trading plan to sell up to 6 million shares. Despite the sales, Huang retains ownership of over 858 million Nvidia shares and remains the largest individual shareholder. The sales come as NVIDIA experiences significant growth and market dominance, surpassing Microsoft's valuation.

NVIDIA (NASDAQ: NVDA) CEO Jensen Huang sold 202,797 shares of the company's stock for $39.16 million, part of a pre-scheduled trading plan to sell up to 6 million shares. Despite the sales, Huang retains ownership of over 858 million Nvidia shares and remains the largest individual shareholder. The sales come as NVIDIA experiences significant growth and market dominance, surpassing Microsoft's valuation.

Huang's stock sales are part of a pre-announced Rule 10b5-1 plan, submitted in March, to sell up to 6 million shares [1]. This plan ensures that the sales are executed at preset times by a designated broker, preventing any influence from new insider information. Even after selling 6 million shares, Huang will still hold a substantial position in the company, owning around 3.5% of Nvidia's outstanding shares [2].

NVIDIA's stock has been rising, and the company is now the most valuable in the world, with a market cap of $4.2 trillion [2]. The strong demand for Nvidia's artificial intelligence (AI) chips is expected to continue, with the AI chipset market projected to grow at a compound annual rate of 28.9% through the end of the decade [1]. However, investors should consider the high valuation of Nvidia, currently trading at 55 times its trailing earnings, compared to the S&P 500 average of less than 25 [1].

Investors may want to consider mirroring Huang's recent stock sale and cash out some shares while still maintaining a position in the company. Nvidia is a market leader, and even if its stock does not double or triple in value in the short term, it still has the potential to deliver market-beating returns. A buy-and-hold position may still make sense for growth investors, but selling a fraction of your position and booking some profits could be a prudent strategy.

References:
[1] https://www.usatoday.com/story/money/investing/2025/07/29/investing-nvidia-ceo-sells-his-shares/85421081007/
[2] https://finance.yahoo.com/news/jensen-huang-unloading-nvidia-stock-132300892.html