Nvidia Corp. (NASDAQ:NVDA) insiders have sold shares valued at more than $700 million this year, capitalizing on the stock’s surge amid strong demand for its chips. Executives and directors have sold approximately 770,000 Nvidia shares, marking the highest sales volume in a six-month period since the first half of 2023, according to data from Washington Service.
The monetary value of these sales is substantial due to the stock’s 168% gain in 2024. This surge has been driven by increased demand for AI accelerator chips, a market where Nvidia holds a dominant position.
Mark Lehmann, CEO of Citizens JMP Securities, noted that while the selling is significant, it doesn’t necessarily indicate a problem, given that some compensation is stock-based and demand for Nvidia’s products remains robust.
“Seeing this level of wealth creation and market cap, I monitor for any exodus of key personnel, which I haven’t observed,” Lehmann commented. “That would be more concerning.”
Nvidia is now the third most valuable company globally, with a market capitalization of about $3.25 trillion, following closely behind Microsoft Corp. (NASDAQ:MSFT) and Apple Inc. (NASDAQ:AAPL).
A significant portion of the insider sales occurred after Nvidia’s fiscal first-quarter earnings report on May 22, which included a better-than-expected revenue forecast and the announcement of a stock split, boosting share prices further. Major sellers included directors Mark Stevens and Tench Coxe. On Monday, CEO Jensen Huang reported the sale of around $31 million in shares under a pre-arranged trading plan. Nvidia representatives declined to comment.
Despite the numerous insider sales, insider purchases have been notably absent. Apart from the exercising of options, the last insider stock purchase was by CFO Colette Kress, who bought $107,390 in shares in December 2020, according to Washington Service data.
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