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Huang Renxun has started selling Nvidia stock again.

Jensen Huang, co-founder and CEO of chip leader Nvidia, sold a record-breaking $323 million worth of company stock in July, breaking his previous record of selling nearly $170 million in June. He continued to sell off shares in August. So far, Jensen Huang has cashed out nearly $500 million (about RMB 3.5 billion) for two consecutive months.

It is worth noting that since entering August, Nvidia's stock price has fallen by more than 14% in three trading days. If the timeline is extended, since Nvidia hit an all-time high in late June, the stock price has retreated by nearly 30%. Some analysts said that before Nvidia's August plunge, Huang Renxun's timing of cashing out was just right, which can be called "precise selling."

Accelerate the reduction of holdings as planned

Nvidia disclosed in a regulatory filing that Huang Renxun adopted a so-called 10b5-1 rule trading plan on March 14, 2024 to sell up to 600,000 shares of Nvidia stock by March 31, 2025. Such plans automatically execute stock trades when preset conditions such as price and quantity are met. These plans are designed to eliminate any advantages that insiders may gain from knowing material non-public information. The sale is part of its executive compensation package, which includes restricted stock units (RSUs) and performance stock units (PSUs), a common practice for corporate CEOs when they meet regulations.

According to the disclosure, Huang Renxun started to implement the relevant reduction plan in June. Among them, there were 11 reductions in June, 120,000 shares each time, a total of 1.32 million shares reduced, and cashed out about 170 million US dollars. In July, there were 22 reductions, 120,000 shares each time, a total of 2.64 million shares reduced, and the amount of cash was about 322.7 million US dollars. Entering August, Huang Renxun did not stop the pace of reduction, and has reduced a total of 240,000 shares for two consecutive trading days.

Nvidia's stock price hit a record closing high of $135.58 per share on June 18. On the next trading day, Nvidia's stock price hit a new intraday high of $140.76 per share, but the closing price fell by more than 3%. Subsequently, Nvidia's stock price began to fall first and then rise, closing at $135 on July 10 to set a second record high, and has been declining since then. On Monday, Nvidia's stock price fell again by 6.36%, and its current stock price has retreated 28.6% from its historical high. Analysts believe that Nvidia's recent plunge is mainly due to some external factors, including unexpectedly weak U.S. employment data, lower-than-expected performance of other companies, seasonal market headwinds, and the impact of the unwinding of yen carry trades.

Of course, Nvidia has some risks of its own, such as its expensive GPU products causing its tech giant customers to try to find alternatives.

Company executives collectively cash out

Nvidia's dominance in the high-end accelerator market has made it one of the biggest beneficiaries of the artificial intelligence boom. As the stock has risen sharply (over 150%) since the beginning of 2024, Huang Renxun's net worth has more than doubled in six months, increasing by about $63.7 billion.

The Bloomberg Billionaires Index shows that Huang Renxun, 61, has a net worth of $88.8 billion, which briefly exceeded $100 billion in July. In the first two trading days of August, Nvidia's stock price fell 8.3%, shrinking his net worth by $8.5 billion, and on Monday it shrank by another $4.8 billion.

Huang is not the only insider to sell Nvidia shares. In July, regulatory filings showed that board member Mark Stevens also sold about $125 million worth of shares, and executive vice president of global business operations Jay Puri sold about $10 million worth of shares.

Optimistic about the future of humanoid robots

On July 29th local time, at the 51st SIGGRAPH Graphics Conference held in Denver, the United States, Huang Renxun and Meta founder and CEO Mark Zuckerberg had a face-to-face public dialogue. The two shared the company's latest progress and their thoughts on the development trends in the field of artificial intelligence.

Following NVIDIA's release of its first humanoid robot model in March this year, Huang Renxun announced at the SIGGRAPH conference that NVIDIA will provide a complete set of services, models and software platforms for the world's leading robot manufacturers, AI model developers and software manufacturers to develop, train and build the next generation of humanoid robots. The complete set of products includes NVIDIA NIM microservices and frameworks for robot simulation and learning, and NVIDIA OSMO orchestration services for running multi-stage robot workloads.

Huang Renxun is optimistic about the future of humanoid robots, saying that AI will have a model of the physical world. "The next wave of AI will be robots. We are advancing the development of the entire NVIDIA robotics stack and opening it up to robotics developers and companies around the world, allowing them to use the platform, acceleration libraries, and AI models that best suit their needs."

As two of the few founders of technology companies still active in the front line, the interaction between Huang Renxun and Zuckerberg is talked about. Last year, a photo of the two exchanging coats after dinner sparked heated discussions on the Internet.

Editor: Wan Jianyi

Proofreading: Gao Yuan

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