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Nvidia鈥檚 rise as the world鈥檚 AI chip powerhouse has created enormous wealth for its insiders, who have now sold more than $1 billion worth of company stock over the past year, while insiders also offloaded over $500 million just last month alone, as Nvidia鈥檚 share price hit new record highs, as per a Financial Times report.Nvidia Market Value Soars to $3.8 TrillionThe California-based chipmaker鈥檚 shares have soared, pushing its market value to $3.8 trillion, a quadrupling in just a few years, as companies and governments worldwide invest heavily in AI technology, according to the report. However, this surge in value hasn鈥檛 just benefited investors, even top Nvidia executives and board members have been cashing out too, as per the report.CEO Jensen Huang Begins Selling SharesNvidia CEO Jensen Huang, whose net worth Forbes estimates at $138 billion, recently began selling shares for the first time since September, as reported by Financial Times. These sales are part of a pre-arranged trading plan agreed upon earlier this year that specifies when and at what price his shares can be sold, according to the report. Huang鈥檚 first sale came soon after the mandatory 90-day cooling-off period ended, coinciding with the stock climbing past $150, as per the Financial Times report.ALSO READ: Amazon CEO reveals which jobs are next to go after 27,000 layoffs 鈥 is yours on the list?Ben Silverman, vice president of research at VerityData, which tracks insider sales, praised Huang鈥檚 timing, saying, 鈥淲hen the stock [dropped] in the first quarter, he did not sell, [which was] was really smart,鈥 adding, 鈥淸Huang] waited for the stock to return to levels that he felt more comfortable selling at,鈥 as quoted in the report.Live EventsUnder Huang鈥檚 trading plan, he can sell up to 6 million shares by year-end, potentially earning over $900 million at current share prices, as per the report. Other Top Executives Also Cashing InOther key Nvidia figures have also taken advantage of the recent rally, according to the Financial Times. Long-time board member Mark Stevens, an early investor and former Sequoia Capital partner, has sold $288 million worth of shares this month, part of a plan to offload up to 4 million shares, as reported by the Financial Times. Executive Vice President Jay Puri, a two-decade veteran of the company who has deputised for Huang on trips to China to meet officials, sold shares worth about $25 million recently, as per the report.ALSO READ: US Dollar has worst start since 1973 – key reasons behind the stunning slideBoard Members Also Join the Sell-OffBoard members Tench Coxe and Brooke Seawell have also cashed in tens of millions of dollars, with Coxe selling roughly $143 million and Seawell $48 million in June alone, according to the Financial Times. FAQsWhy are Nvidia insiders selling so much stock right now?Many insiders are cashing in after years of huge stock gains. These sales are mostly planned ahead to avoid surprises and follow legal rules.How much could CEO Jensen Huang earn from his planned sales?If he sells all 6 million shares allowed under his plan, Huang could earn over $900 million.(You can now subscribe to our Economic Times WhatsApp channel)
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onNvidia stock salesAI chip market growthJensen Huang insider tradingNvidia executives selling sharesNvidia market capitalizationNvidia insider trading plansNvidia share price recordAI technology investmentsNvidia market valueNvidia executives cashing out(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates….moreless