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Nvidia CEO Jensen Huang’s Stock Sales
Jensen Huang, CEO of Nvidia (NASDAQ: NVDA), revealed plans to sell up to 6 million shares of the company as part of a pre-published Rule 10b5-1 plan submitted in March. Despite selling hundreds of thousands of shares this month, Huang remains the top individual shareholder with approximately 858 million shares, or about 3.5% of Nvidia’s total outstanding shares. The company’s stock is currently trading at around 55 times its trailing earnings and has reached an all-time high, contributing to its valuation of $4.2 trillion, making it the most valuable company in the world.
While insider selling can raise concerns among investors, experts suggest that Huang’s sales are not indicative of expected trouble for the company. Demand for Nvidia’s AI chips remains strong, with projections estimating the AI chipset market to grow at a compound annual rate of 28.9% through the decade. Huang’s sales account for a small fraction of his holdings, and investors may still reap significant returns from holding Nvidia stock, albeit with an awareness of its elevated market valuation.
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