NVIDIA founder Huang Renxun revealed on Thursday plans to sell 600,000 shares of NVIDIA stock, estimated to cash out $7.35 billion based on NVIDIA’s closing price on the 5th. This has led to speculation in the community that Huang Renxun is “cutting leeks.” But is it really the case?
Artificial intelligence (AI) chip giant NVIDIA’s stock price has been on an astonishing rise, soaring nearly 150% so far this year. On Wednesday, it hit a historic high of $1240, becoming the third company in US stock market history to surpass a market value of 3 trillion USD, briefly surpassing Apple to become the world’s second-largest company by market capitalization.
However, after the news that NVIDIA’s founder Huang Renxun plans to sell 600,000 shares of personal NVIDIA stock and the announcement of an antitrust investigation against NVIDIA by the US, NVIDIA’s stock price plummeted nearly 6% on Thursday, closing down 1.14%. It also fell slightly on Friday by 0.09% to $1208.88, bringing the market value back down to 2.97 trillion USD.
According to the latest regulatory filings submitted by NVIDIA to the SEC, Huang Renxun submitted a 10b5-1 trading plan on March 14 to sell up to 600,000 shares of NVIDIA stock by March 31, 2025, calculated at NVIDIA’s 5-day closing price of $1224.40, estimated to cash out $7.35 billion.
The 10b5-1 plan automatically executes trades when preset conditions are met, such as a stock price or trading volume reaching a certain level, to prevent insiders from having an advantage due to significant non-public information.
After the news came out, there were many negative doubts online about Huang Renxun cashing out 600,000 shares at the peak, “Realizing profits! A bunch of leeks,” “Eating leeks,” “Raising and killing the trap”…
In response to these negative doubts, the Facebook page IEObserve International Economic Observation posted yesterday:
According to data compiled by finviz, it can be found that Huang Renxun has been selling personal shares irregularly since 2008. The most recent one was on September 14 last year when he acquired 29,684 shares of stock through stock options at a price of $4 per share. He cashed out $13.5 million at an average price of $455.75 per share. Since his last sale, NVIDIA’s stock price has more than doubled in less than 9 months.
There were also comments from netizens on the post: Most of Huang Renxun’s income is speculated to be in stock dividends. It is normal to cash out stocks for living expenses and taxes. “Real men, wholeheartedly dedicated to their careers,” “Cashing out is normal, that’s what people earn,” “The only source of income, so you have to manage your business seriously,” “Please shorts, put pressure on the net worth”…
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