Nvidia (NASDAQ: NVDA | NVDA Price Prediction) CEO Jensen Huang has sold stock several times this year as part of a program he established beforehand. It is part of a plan that allows him to sell 6 million shares this year. This week, he sold 75,000 shares worth $12.94 million.
Huang is cashing in after a very long time as CEO. He co-founded the company in 1993. The stock traded between $10 and $20 for most of the period from mid-2020 to early 2023.
Once it was clear that the medium-sized tech company had become the leader in AI chips, the stock made a massive breakout. Today, it trades at $176, making Nvidia the world’s most valuable company with a market capitalization of just over $4 trillion. That is nearly twice the level of Alphabet (NASDAQ: GOOG), a market darling for decades.
The run-up in Nvidia shares has also made Huang the ninth richest person in the world, with a net worth of $150 billion.
Nvidia’s stock has not had a direct path upward. It dropped sharply earlier in the year. In early April, shares traded at $92. They stumbled after Huang said, “the $50 billion China market is effectively closed to U.S. industry.” His reference was to artificial intelligence (AI) chips, a business that Nvidia dominates. CNBC notes that this challenge will not harm the company as badly as initially expected. Nvidia expert Loop Capital said its market cap is headed toward $6 trillion because of its dominant position in the sector.
Another reason Nvidia faltered was the concern that AI adoption had slowed. Earnings reports from tech giants like Microsoft (NASDAQ: MSFT) raised that issue. However, Nvidia’s largest customers continue to put hundreds of billions of dollars into AI data centers, which are at the heart of the industry. Nvidia’s market share of add-in-board GPUs was 92% in the first quarter.
A primary reason for the rally is Nvidia’s earnings. In its report, it offered a rosy picture of its near-term future. In the most recent quarter, revenue increased 69% year-over-year to $44.1 billion. Per-share earnings rose 27% to $0.76. The company added, “Excluding the $4.5 billion charge and related tax impact, first quarter non-GAAP diluted earnings per share would have been $0.96.”
In the current quarter, the company expects revenue of $45 billion, plus or minus 2%. Its extraordinary revenue growth continues. According to Yahoo, the analysts’ forecast is slightly higher than that.
The AI revolution has not slowed, and Nvidia’s market capitalization is a testament to that. And Huang’s net worth has gone along for the ride.
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