Nvidia’s CEO Has Sold a Million Shares. He Has Millions More to Sell.

Jensen Huang’s trading plan has sold 975,000 Nvidia shares for $152 million since June. (THIBAUD MORITZ/AFP via Getty Images)

Nvidia stock continues to rise, setting a record of $165.69 in Friday morning trading. The founder and CEO of the first $4 trillion publicly traded company, Jensen Huang, continues to sell shares of the chip firm through a trading plan.

Through a so-called Rule 10b5-1 plan he adopted on March 20, Huang has sold 975,000 shares of the chip firm for a total of $152 million, an overall average price of $155.91 each. Insiders use such plans to remove the appearance of bias from the knowledge of nonpublic information. HIs plan began selling June 18, and the average sales price of the transactions has risen to $161.91 this week from $144.04 in June.

In response to a request for comment, Nvidia provided the statement, “All of Jensen’s sales noted are based on 10b5-1 plans, in which the price, amount and dates of the sales are established in advance.”

Huang’s plan provides for the sale of six million, so it still has a little more than five million shares left to sell through the end of 2025. On an average day, more than 200 million Nvidia shares trade, and Huang’s plan has been selling batches of about 200,000 shares over three-day periods, so transactions are hardly causing a ripple. Trading plans automatically execute trades when preset conditions, such as volume, price, and timing, are met.

Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Corrections and Amplifications

Nvidia recently became the first publicly traded company to reach a $4 trillion market valuation. An earlier version of this article incorrectly stated it was the first to reach $4 billion.

Write to Ed Lin at ed.lin@barrons.com