Amid the continuous decline in Nvidia's stock price, CEO Huang Renxun has been gradually selling the company's stocks, further intensifying investor concerns. As of the Friday market close, the company plummeted by over 4%, at $102.83 per share.
The total shareholding is approximately $0.633 billion USD.
On Thursday, Nvidia submitted a filing to the U.S. Securities and Exchange Commission, indicating that Huang Renxun is selling Nvidia's stocks at a rate of 0.12 million shares per trading day.
In 44 transactions from June 13th to September 5th, Huang Renxun sold a total of 5.28 million shares, with a cumulative shareholding of approximately $0.633 billion USD.
This is part of Huang Renxun's 10b5-1 shareholding plan initiated in March this year, where he plans to sell no more than 6 million shares by March 31, 2025 through this program.
The 10b5-1 trading plan allows insiders of a publicly traded company to buy and sell stocks based on pre-set prices, trading volumes, and sale dates, providing a lawful mechanism for company insiders to avoid insider trading accusations.
According to FactSet data, Huang Renxun is Nvidia's largest individual shareholder, holding approximately 3.5% of the company's outstanding shares as of August 9th.
Some market analysts believe that Huang Renxun may be motivated by personal financial planning. By selling stocks, he can achieve financial freedom or reduce dependence on the company's performance.
However, from a market perspective, executive shareholding reductions are generally seen as bearish news. As Huang Renxun began to reduce his holdings at a time when Nvidia's stock price reached its peak, this is also seen as a 'topping out' behavior.
There is continuous bearish news.
Recently, Nvidia has frequently encountered bearish news.
On September 3rd, it was reported that the US Department of Justice launched an investigation into Nvidia. The investigation primarily focuses on two aspects: one is the acquisition of Israeli ai startup Run:ai by Nvidia, and the other is assessing whether Nvidia has abused its market dominance in the ai chip field to prevent customers from using competitor products.
This news caused market panic and resulted in Nvidia's market cap evaporating nearly 2 trillion RMB at one point, setting the record for the highest single-day market value loss in US stock market history.
On the other hand, Nvidia's latest performance guidance released on the 28th of the month is 'not optimistic enough'.
The report shows that in the second quarter of the 2025 fiscal year, the company's total revenue reached $30.04 billion, a 15% increase compared to the previous quarter and a 122% increase compared to the same period last year, far exceeding the expected $28.7 billion. The adjusted earnings per share were $0.67, a 152% increase compared to the same period last year.
Nvidia expects its revenue for the third quarter of fiscal year 2025 to reach approximately $32.5 billion, which is higher than the average analyst expectation but lower than the most optimistic expectation of $37.9 billion.
Due to its revenue guidance for the next quarter failing to meet market expectations, Nvidia's stock price plummeted more than 8% after hours.
Previously, there was news that the mass production time of Nvidia's new AI chip, Blackwell B200, was delayed. The chip was originally planned to begin mass production in October of this year, but due to design flaws, the release and delivery may be delayed by three months or more, until the first quarter of 2025. This may directly impact Nvidia's quarterly earnings.
In addition to increased global economic uncertainty, the emergence of competitors, and the longer investment return cycle of artificial intelligence, investors are becoming increasingly concerned about Nvidia's future development prospects. The company's stock price has fallen more than 13% since September.
Editor/Emily