Nvidia Approaches $3 Trillion After CEO’s $700M Share Sale

Nvidia, a global leader in graphics processing and artificial intelligence (AI) technologies, has experienced a resurgence in its stock value following the completion of a significant share sale by its CEO and co-founder, Jensen Huang. According to a regulatory filing released on Tuesday, Huang sold millions of shares in the company, raising over $700 million in the process. The announcement prompted an immediate uptick in Nvidia’s stock performance, with shares rising 4% by late afternoon. This increase brought Nvidia’s market capitalization to approximately $2.97 trillion, nearing the $3 trillion mark that it briefly surpassed in late August.

In a previous filing with the Securities and Exchange Commission (SEC), Huang, 61, had outlined plans to sell up to 6 million Nvidia shares by March 31, 2025. However, Huang completed the sale well ahead of schedule, reaching the threshold by September 12, nearly six months early. Between June 14 and September 12, Huang sold approximately $713 million worth of shares, with prices ranging from a low of $91.72 to a high of $140.24 per share. Despite this large sale, Huang remains Nvidia’s largest individual shareholder, holding 75.4 million shares directly and controlling an additional 786 million shares through trusts and partnerships. His stake in Nvidia, around 3.8%, underscores his continuing influence over the company’s direction.

The timing of Huang’s share sale coincides with a period of heightened volatility in the tech sector, particularly within industries connected to artificial intelligence and semiconductors. Nvidia, being a key player in these markets, has benefited significantly from the growing demand for its cutting-edge technology solutions. The company’s graphics processing units (GPUs) have become essential to advancements in AI, gaming, data centers, and even cryptocurrency mining. AI-related applications, in particular, have positioned Nvidia at the center of the tech world’s focus, driving its value and growth to unprecedented levels.

Nvidia’s stock surge on Tuesday pushed its market cap back to around $2.97 trillion, close to the $3 trillion valuation it achieved in late August. This marks a recovery from early September when the company’s stock dropped by 6%, leading to a temporary loss of $280 billion in market value. Nvidia’s quick rebound reflects a renewed sense of investor optimism, buoyed by broader market dynamics and favorable macroeconomic conditions, including a 0.5 percentage point interest rate cut by the Federal Reserve. These factors helped stabilize the tech sector after a larger selloff earlier in the month.

Jensen Huang’s leadership has been integral to Nvidia’s success. Since co-founding the company in 1993, Huang has guided Nvidia from its early days as a niche graphics card producer to its current status as a leader in AI, autonomous vehicles, and high-performance computing. His personal fortune has soared alongside Nvidia’s stock price. With an estimated net worth of $106 billion, Huang is now the 13th-richest person in the world. On Tuesday alone, his wealth grew by $4.2 billion as a result of Nvidia’s stock rally. This is a remarkable increase from 2019 when Huang was ranked 546th among the world’s wealthiest individuals. His net worth has skyrocketed by $102 billion since then, with $85 billion of that growth occurring in the past year alone.

Nvidia’s rise to prominence in the AI space has been a key driver of its valuation. Earlier this year, the company briefly overtook tech giants like Apple and Microsoft to become the world’s most valuable company, with a market cap of $3.33 trillion. This surge was fueled by the booming demand for AI-related technologies, where Nvidia’s GPUs play a critical role. Despite a temporary setback caused by the broader tech selloff, Nvidia has managed to regain much of its lost value, proving its resilience in a highly competitive market.

Looking ahead, Nvidia continues to be a favorite among investors, particularly those with an interest in AI, semiconductors, and innovative technologies. The company’s ability to maintain its leadership position in these rapidly evolving fields will be crucial to its future growth and potential to surpass the $3 trillion valuation once again. For Jensen Huang, the completion of his $700 million share sale is another milestone in his already storied career. Even after selling a large portion of his shares, Huang remains deeply involved in Nvidia’s future as both its CEO and largest shareholder. As the company nears another valuation milestone, investors will be closely watching Nvidia’s next steps in the rapidly expanding world of AI and technological innovation.