Blue Whale News, June 25th (Reporter Zhu Junxi) NVIDIA has not sat for too long in the world's top market value position. Since June 20th, Nvidia's stock price has been declining for three consecutive trading days, falling more than 15.6% from its recent high.
On June 24th local time, Nvidia closed at $118.11 per share, down 6.68%, the second largest daily decline this year. Nvidia's latest market value reached $2.91 trillion, a decrease of nearly $430 billion from its peak market value. Microsoft ranked first with a market value of $3.33 trillion, followed by Apple with a market value of $3.19 trillion.
Nvidia's poor performance has also led to a decline in the stock prices of other chip companies. UK chip company Arm closed down 5.76%, while semiconductor industry giants Qualcomm and Broadcom's stock prices fell 5.5% and 3.7% respectively. The stock price of ultramicro computers equipped with NVIDIA AI chips also plummeted by 8.65%.
These companies have all taken advantage of artificial intelligence and have been heavily bet by investors in recent years, with Nvidia being seen as the biggest beneficiary of this wave of AI. Although Nvidia's stock price has recently declined, its cumulative increase this year is still 139%.
Jane Edmondson, Theme Strategy Director at data firm TMX VettaFi, told the media, "Nvidia and its AI peers have reached the time for a pullback after a significant increase. Investors may take profits at the end of the quarter and readjust their investment portfolios, but Nvidia's fundamentals still exist."
Last week, while Nvidia continued to create a growth myth, its CEO, Huang Renxun, was also leading the way in high-level cashouts. According to documents disclosed by the US Securities and Exchange Commission, between June 13th and 21st, Huang Renxun cumulatively reduced his holdings of 720000 NVIDIA shares, with a cash out amount of $94.6 million and an average selling price of $131.44 per share.
In March of this year, Huang Renxun adopted the "10b5-1 Rule Trading Plan" and will sell no more than 600000 shares of Nvidia stock by March 31, 2025. With Nvidia implementing a 10-1 split, Huang Renxun's sales plan covers 6 million shares, and he will also sell an additional 5.28 million shares.
These stocks are part of Huang Renxun's compensation plan as the CEO of Nvidia, and executives often sell such stocks in compliance. The reduced shares only account for a small portion of Huang Renxun's total shareholding, and he still holds over 860 million NVIDIA shares directly or indirectly through trusts.
Other executives at Nvidia are also reducing their holdings and cashing out. Chief Financial Officer Colette Kress sold $12.7 million worth of stocks, and Executive Vice President Deborah Shoquist also sold over 41000 shares, cashing out over $45 million. According to data provider Washington Service, since Nvidia released its first quarter financial report on May 22, more than one-third of insiders have chosen to reduce their holdings of stocks, with the selling speed reaching a new high in many years.
The last time Huang Renxun sold NVIDIA stocks was in September 2023, when he reduced his holdings of 237500 shares and cashed out a total of $110 million. But since then, Nvidia's stock price and market value have continued to rise. On June 26th local time, Nvidia will hold its annual shareholder meeting, and the management's statement will be closely monitored by the market in the face of fluctuating stock prices.