Nvidia's Jensen Huang Surpasses Warren Buffett as AI Boom Propels Wealth to New Heights

In recent days, the spotlight in the American stock market has been firmly on Nvidia and its CEO, Jensen Huang. Nvidia's market capitalization soared past the historic $4 trillion threshold last Thursday, significantly boosting Huang’s personal wealth and surpassed the iconic investor Warren Buffett by Friday.

Huang has been systematically reducing his holdings in Nvidia, selling 225,000 shares between July 8 and 10, valued at approximately $36.4 million. This action is part of his 10b5-1 trading plan, designed to divest a total of 6 million shares by 2025, with the intent to ensure transparency and mitigate insider trading concerns.

As Nvidia’s stock continues to rise, driven by its leadership in the artificial intelligence sector, investors are increasingly optimistic about its future. This surge has catapulted Huang’s wealth to unprecedented heights. According to Forbes’ real-time billionaire tracker, Huang’s fortune is currently estimated at $1,436 billion, surpassing Buffett's wealth of $1,424 billion, and placing him seventh globally. Similarly, Bloomberg’s Billionaire Index notes Huang's net worth at $1,440 billion, slightly above Buffett’s $1,430 billion.

Detailed filings with the SEC indicate Huang sold 22.5 million shares as part of his systematic stock reduction plan. Despite these sales, he maintains a substantial stake in Nvidia, holding over 858 million shares, approximately 4% of the total company stock, suggesting the sales are a small fraction of his overall holdings.

This strategic divestment reflects Huang's long-term planning and adherence to regulatory frameworks aimed at maintaining market fairness. Notably, other insiders, including board members, have collectively cashed out shares worth over $1 billion in the past year.

Furthermore, Huang’s recent leap in wealth above Buffett is partly attributed to specific circumstances involving the latter. Earlier this year, Buffett announced his impending semi-retirement from his CEO role at Berkshire Hathaway, which has underperformed against the broader stock market by over 20 percentage points since then, contributing to a decrease in his net worth.

In addition, Buffett made a substantial philanthropic move by donating $60 billion in Berkshire Hathaway shares to several charitable foundations, leveraging his considerable wealth for social good, a tradition he has maintained since he began donating nearly two decades ago.