In the past June, Nvidia CEO Huang Renxun sold his Nvidia shares to cash out nearly $170 million (approximately RMB 1.241 billion).
According to the disclosure data submitted to regulatory authorities, Huang Renxun sold a total of 1.3 million shares of NVIDIA in June, with an estimated total value of nearly $169 million, setting a personal record for the highest monthly cash out through stock selling.
Huang Renxun's stock sale plan was announced as early as March this year. At that time, Nvidia mentioned in its quarterly financial report that Huang Renxun would sell up to 600000 shares through the 10b5-1 stock sale plan by the end of March 2025.
Market analysts point out that the stocks sold by Huang Renxun this time are part of his executive compensation plan, including restricted stock units (RSUs) and performance stock units (PSUs), which are common practices for CEOs in compliance with regulations.
Although the number of shares sold in June only accounted for a small proportion of Huang Renxun's personal shareholding, Nvidia's stock price, which serves as a benchmark for AI concepts, continued to soar in June. The month's selling and cashing out allowed him to make more profits. Based on closing prices, Nvidia rose nearly 13% in June and approximately 150% this year.
On June 5th, Nvidia's market value broke through $3 trillion for the first time, and it remained above this threshold for several days. At the close of June 18th, it reached $3.34 trillion, surpassing Microsoft and becoming the world's highest listed company by market value. However, on the second day, its market value was surpassed by Microsoft.
On Wednesday of this week, Nvidia's stock price rebounded, closing up nearly 4.6%, and its market value surged overnight by $138 billion (approximately RMB 1007.4 billion). At the close of the day, its market value was approximately $3.16 trillion, ranking third only to Microsoft and Apple.
The sharp rise in company stocks has made many Nvidia employees extremely wealthy. Most employees who joined the company five years ago or earlier have now become millionaires.
According to Levels.fyi, a US technology company's compensation and benefits data collection website, Nvidia's product managers (IC3 level) have an average annual basic salary of $260000 and can also receive $104000 in equity rewards.
According to statistics compiled by Washington Service, a major provider of internal trading data in the US market, Nvidia executives and board members have sold approximately 770000 Nvidia shares worth over $700 million so far this year, excluding the impact of the company's 1 to 10 split on June 10th.
The Daily Economic News reporter also noted that Nvidia has always lacked internal buyer power. According to statistics compiled by Washington Service, apart from exercising significant options, Nvidia has not had any insiders increase their holdings since its CFO Colette Kress bought a large amount of stocks in December 2020.
Recently, Business Insider also reported that at the end of last year, Nvidia CEO Huang Renxun and executives held a series of meetings to discuss an increasingly worrying issue, namely whether Nvidia's largest customer will always maintain demand for Nvidia chips. Huang Renxun does not want the company to one day decline like former hardware giants like Cisco. He is pushing the company into the software and cloud services sector.