Nvidia (NVDA) is in focus this morning following news that Jensen Huang, its chief executive, has sold more than $14 million worth of the company’s shares in recent sessions.
According to Huang’s recent filing, he’s trimmed his stake in NVDA from 75.8 million shares to 75.7 million shares. The chief executive also owns more than 783 million NVDA shares through trusts, partnerships, and LLCs.
Huang’s move comes on the heels of a massive surge in Nvidia stock, which is now trading more than 70% above its year-to-date low set in the first week of April.
Why Huang’s Share Sale Isn’t a Negative for Nvidia Stock
Note that Jensen Huang could sell another roughly $850 million worth of Nvidia stock by the end of 2025.
However, his share sales (including the one revealed today) will be executed under a Rule 10b5-1 prearranged trading plan – adopted and publicly disclosed in March – designed to avoid the perception of insider trading.
Such plans are common among executives to diversify personal wealth without signalling a lack of confidence. Huang still holds more than 900 million NVDA shares, underscoring his long-term commitment to the artificial intelligence behemoth.
The sale represents less than 1.0% of his holdings and aligns with prudent financial planning – not pessimism. In short, given the company’s leadership in AI and Huang’s strategic vision, his filing shouldn’t be interpreted as a bearish signal for Nvidia stock.
NVDA Shares May Be Headed to Print a New High
While NVDA has already been lucrative for its investors in recent months, Kevin Simpson – the founder and chief executive of Capital Wealth Planning – recommends sticking to it for the longer term.
Simpson said Nvidia stock will likely print a new all-time high in the coming weeks as he appeared on CNBC last week.
According to him, Nvidia shares remain worth owning as “they’re not [just] chips anymore.” In fact, the multinational is stretching its wings in software (CUDA) and networking as well.
Wall Street Shares Simpson’s Optimism on Nvidia
Wall Street analysts agree with Simpson’s bullish view on Nvidia stock as well.
The consensus rating on NVDA currently sits at “Strong Buy” with the mean target of about $175 indicating potential upside of more than 20% from current levels.
