Nvidia CEO and founder Jensen Huang has revealed a plan that has raised investor concerns. According to a Motley Fool report, Huang will be selling six million Nvidia shares, which at the current price, will be around $810 million. While Nvidia’s stock has risen by 1,400% in the last five years, making it a win for long-time investors, this latest decision has been seen as a sign of trouble, as it indicates that share performance might dip.
However, Huang seems to be optimistic about Nvidia’s success. He has shown optimism even during the latest earnings call, as he said Nvidia is “off to the races,” which indicated the company is in its early stages of AI growth.
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Nvidia has also been posting several quarters of double- and triple-digit revenue growth, and it has continued in the first quarter of this fiscal year, as per the report. The AI chipmaker also continues to see rising demand for its new Blackwell architecture and expects that the area of AI inference will be a huge growth driver.
According to The Motley Fool report, the six million shares Huang is trying to sell is not a big part of his entire holding. By the end of the last fiscal year, Huang held over 922 million Nvidia shares, which is just over 3.7% of the company, as per Nvidia’s fiscal 2025 annual report. These share sales are also part of a regular plan that allows Nvidia insiders to periodically sell shares, rather than a decision taken due to a specific reason. The selling is done under a Rule 10b5-1 plan, where the sales are predetermined so that buying or selling activity would not be considered insider trading.
“The idea is insiders can buy or sell at a particular time, prepared ahead and when they don’t have access to material non-public information,” wrote The Motley Fool. This agreement was written in March, and would expire by December 31.
This is not the first time Huang, or other Nvidia executives used these plans to buy stock. The report calls it a process to lock in some profits from time to time because maybe they want to “pay bills or want to reallocate cash into other investments.”
Nvidia recently reported better-than-expected earnings and revenue with the company’s booming data center business recording year-over-year growth of 73%. Huang also told investors in an earnings call that the $50 billion market in China for AI chips is “effectively closed to U.S. industry.”
“The H20 export ban ended our Hopper data center business in China,” Huang said, referring to a data center GPU based on the Hopper architecture, developed specifically for the Chinese market to comply with U.S. export restrictions. The company also said its guidance would have been about $8 billion higher except for lost sales from a recent export restriction on its China-bound H20 chips.
Nvidia also recently decided to partner with French AI startup Mistral to build AI data centers in France using Nvidia chip, in a move that has been dubbed a “game changer” by French president Emmanuel Macron.