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Recently, the U.S. Securities and Exchange Commission (SEC) documents showed that Nvidia CEO Huang Renxun spent between June 13 and August 1.A total of 372,000 shares of Nvidia were sold, with a total cash out of more than US$470 million (approximately RMB 3.4 billion).

According to the Securities Times,Among them, the cash-out transaction of US$323 million in July broke the personal monthly cash-out record set by selling nearly US$170 million in June.

Nvidia CEO Huang Renxun sells shares. Image source: Visual China (image and text are unrelated)

Since 2024, Nvidia's stock price has continued to rise, and its market value has once exceeded 3 trillion US dollars, even surpassing Microsoft and Apple to become the world's most valuable company.

It is worth noting that since 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 intraday high in late June, its stock price has retreated 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."

Nvidia's stock price has fallen by more than 14% in three trading days

Well-known hedge fund: Nvidia is in a "bubble"

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 advantage that insiders might have as a result of knowing material, nonpublic information.The sale was 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 the requirements.

According to disclosures, Huang Renxun began to implement the relevant share reduction plan in June.

Among them, there were 11 share reductions in June, 120,000 shares each time, a total of 1.32 million shares were reduced, and about US$170 million was cashed out.

In July, the company sold its holdings 22 times, 120,000 shares each time, for a total of 2.64 million shares, cashing out approximately US$322.7 million.

Since entering August, Huang Renxun has not stopped reducing his holdings, having sold a total of 240,000 shares in two consecutive trading days.

The analysis pointed out thatThe shares Huang sold were part of his executive compensation package, which belong to restricted stock units (RSU) and performance stock units (PSU), and company CEOs often sell such stocks when they are allowed. At the same time, data shows that Huang Renxun still holds a large number of Nvidia shares. As of March 25 this year, Huang Renxun has accumulated nearly 93.5 million shares of Nvidia, accounting for almost 3.8% of the company's total outstanding shares.

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 thatHuang Renxun, 61, had a net worth that briefly topped $100 billion in July.，It has now fallen to $88.8 billion.In the first two trading days of August, Nvidia's stock price fell 8.3%, causing its net assets to shrink by US$8.5 billion (approximately RMB 60.7 billion). On August 5, it shrank again by US$4.8 billion (approximately RMB 34.3 billion).

Huang wasn't the only Nvidia executive to sell shares in July.The relevant documents show thatNvidia board member Mark Stevens also sold about $125 million worth of stock, and Jay Puri, executive vice president of global business operations, sold about $10 million worth of stock.

The selling by Huang and other executives has raised concerns among investors and prompted many to potentially reassess their holdings.

Well-known hedge fund Elliott Management told investors last week that Nvidia is in a "bubble" and that the artificial intelligence technology that has driven the chip giant's rise is also "over-hyped."

The logo of the US chip giant Nvidia. Image source: Daily Economic News file photo

Nvidia's 'most advanced' chips to be shipped later this year

In fact, in addition to being affected by the recent adjustment of the U.S. stock market, Nvidia's current round of decline also reflects investors' concerns about the company's future fundamentals.

According to China Securities Journal, five people with direct knowledge of the matter revealed that lawyers from the Department of Justice are investigating the acquisition of artificial intelligence startup Run:Ai by semiconductor company Nvidia on antitrust grounds. The two companies announced the deal in late April but did not disclose the price. On the other hand, American progressive groups and Democratic Senator Warren urged the Department of Justice to investigate Nvidia, believing that the company is dominant in promoting the AI ​​chip market and opposes Nvidia's practice of bundling software and hardware together.

U.S. Justice Department officials have reached out to Nvidia’s competitors, including Advanced Micro Devices, with a particular focus on business practices surrounding sales of AI chips. The Justice Department is investigating whether Nvidia pressured cloud service providers to buy a variety of products.

Nvidia issued a statement saying the company "wins on strength", complies with all laws, and will provide any information regulators request.

According to the American technology website The Information, due to design flaws,The shipment time of Nvidia's next-generation Blackwell architecture series AI flagship chip GB200 will be delayed by at least three months.

According to China Fund News,An unnamed Microsoft employee said Nvidia has informed Microsoft thatIts most advanced Blackwell series AI chip models will be delayed in shipment.

Nvidia released the Blackwell series in March this year, and CEO Jensen Huang confidently stated in May that the company plans to start mass shipping Blackwell series chips later this year.

The GB200 chip contains two connected Blackwell GPUs and a Grace central processing unit. However, in recent weeks, when TSMC engineers were preparing for mass production, they discovered a design defect in the die connecting the two Blackwell GPUs. This defect will lead to a reduction in chip yield or production, and the usual practice is to stop mass production.

Therefore, Nvidia had to adjust its chip design and cooperate with TSMC to conduct new trial production before starting mass production.

Chip shipment delays are not unheard of;However, it is very rare for major design flaws to be discovered just before mass production.

According to China Securities Journal, the market demand for B200 is very strong, and customers have switched from B100 to B200 (the demand has exceeded 450,000). The Meta model training party also said that they also need to add B200 orders, at least 150,000 B200s are needed, and it was originally expected to add orders next month. In addition, NVIDIA will mainly launch H200 in the third quarter, and the performance of this quarter is expected to be more than 33 billion US dollars. In October and November, some H200s will be added to customers for emergency response, and everything will be normal by December at the latest.

TSMC originally planned to start mass production of the Blackwell series chips in the third quarter and to start mass shipments to Nvidia customers in the fourth quarter. However, due to the discovery of design defects, mass production had to be postponed to the fourth quarter, and mass shipments are expected to be postponed to the first quarter of next year. TSMC has reserved production capacity for mass production of GB200, but has to idle the production line until the problem is resolved.

Microsoft's order size has also increased by 20% in recent weeks. They originally planned to provide OpenAI with servers based on the Blackwell series of chips before January next year, but now it may be postponed until at least March next year.

Daily Economic News Comprehensive Securities Times, China Securities Journal, China Fund News, Daily Economic News

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