Following Nvidia's sustained stock surge, some of the chipmaker's shareholders have decided to cash in on their investments. Last week, Nvidia directors sold 99,000 shares valued at approximately $80 million, as per the company's Form 4 filings with the US Securities and Exchange Commission. These share disposals occurred in the days subsequent to Nvidia's earnings beat in the fourth quarter, propelling the stock to reach its all-time high.
The insider stock sale by Nvidia directors last week marked the most significant transaction in a month since September, when 237,500 shares were sold, according to data from Washington Service, an insider trading information service cited by Bloomberg. Despite a 1.3% decline in Nvidia's shares, closing at $776.63 on Wednesday, the stock has surged by nearly 60% since the beginning of the year.
Over the past 12 months, Nvidia's shares have soared by over 200%, driven by the increasing demand for its artificial intelligence (AI) chips amidst a technology boom. The high demand for Nvidia's chips has been so substantial that the company's cofounder and CEO, Jensen Huang, had to reassure analysts during the latest earnings call that the chip allocation process is being conducted fairly.
Notably, Nvidia's stock surge has also significantly boosted Huang's wealth, making him one of the wealthiest individuals globally. As of Wednesday, Huang's net worth stood at $69.3 billion, ranking him as the 20th-richest person in the world, according to the Bloomberg Billionaires Index.
