Nvidia, based in Santa Clara, California, had a successful year so far in 2024, with its executives and directors selling approximately 770,000 shares of the company. This does not include its 10 for 1 stock split that took effect on June 10. The company’s shares have seen a significant increase of about 176% this year compared to previous periods. In the first six months of 2023, insiders sold around 848,000 shares. The sales of 770,000 shares mark the highest number sold in a half since then.
Despite Nvidia’s strong performance, some strategists warn of a potential AI bubble that could impact the company in the future. In May, Nvidia surpassed Wall Street’s expectations by reporting record first-quarter revenue of $26 billion for fiscal 2025, reflecting a 262% increase year-over-year. This positive news pushed Nvidia’s stock price to over $1,000 following the earnings report.
Nvidia’s success can be attributed to its Hopper chips, used for training and deploying powerful AI models. The company became the first chipmaker to reach a market capitalization of $2 trillion in February, which then surpassed $3 trillion earlier this month. The demand for Nvidia chips in the AI industry has solidified its position as the world’s third most valuable company, trailing only Microsoft and Apple.
In March, Nvidia introduced its next-generation chip, Blackwell, which is scheduled to start shipping in the second quarter of the year and reach customers by the fourth quarter. CEO Jensen Huang announced that revenue from the Blackwell AI platform is expected this year. Additionally, Huang unveiled plans for upcoming chips, including Blackwell Ultra in 2025 and the Rubin AI chip platform in 2026. Nvidia intends to continue unveiling new chips at a rapid pace, with announcements scheduled annually.
The company’s success in the AI market has driven its growth and market value, positioning Nvidia as a key player in the industry. As Nvidia continues to innovate and release new products, it is set to maintain its momentum and solidify its position in the competitive tech landscape.
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https://qz.com/nvidia-executives-directors-sold-700-million-shares-1851546312
