While Nvidia Corp. has set the stock market on fire with its rapid surge, briefly making it thelargest companyby market capitalization, its CEO and "Godfather of GPU" Jensen Huang has offloaded shares worth over $90 million in the last week.
What Happened: According to Nvidia's regulatory filings with the U.S. Securities and Exchange Commission (SEC,) Huang has been busy offloading shares.
In the last week alone, Huang sold shares worth over $94 million, according to Nvidia's Form 4 filings.
All in all, Huang has sold 720,000 shares of Nvidia between June 13 to June 21, netting him $94.64 million.
He still owns over 866 million shares of the company, either directly or indirectly through trusts.
This comes at a time when Nvidia's shares have been on a rapid surge, briefly helping the company become the world's largest in terms of market value, which peaked at $3.24 trillion on June 15.
Although Nvidia's shares have since scaled down slightly, the company is still the third-largest in the world by market value, trailing Microsoft Corp. and Apple Inc., respectively.
Why It Matters: Huang's vision has driven Nvidia's meteoric rise on the back of its focus on delivering chips tailored for artificial intelligence (AI) use cases.
It is also the frontrunner in the race to $4 trillion market capitalization, edging past Microsoft and Apple, its closest rivals in this regard.
However, Nvidia insiders have recently cashed in on the bull run, selling over $700 million in shares. Huang, too, has been amongst the sellers, offloading over $94 million worth of shares at a time when Nvidia's shares set a new record.
This also comes at a time when there are concerns among investors about Nvidia's ability to sustain the momentum, with an expert predicting a 30% pullback from current levels.
Veteran tech investor, Paul Wick of Seligman Investments, has also voiced concerns about Nvidia's growth prospects, drawing parallels to Cisco Systems Inc.'s rise during the dot-com bubble.
Whether Nvidia can overcome these hurdles or not remains to be seen.
NVDA Price Action: Nvidia's shares closed 3.22% lower on Friday at $126.57. The stock is up 33.30% in the last month, and 162.76% up year-to-date, according to Benzinga Pro.
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