Nvidia's Market Capitalization Drop and Executives' Share Reduction

TapTechNews June 23rd news, only sitting on the throne of the global number one stock for one day, Nvidia fell from the altar.

This Friday, Nvidia fell by 5%一度 after the US stock market opened. By the close, Nvidia fell by 3.22% to $126.57 per share, with a market capitalization of $3.11 trillion. Compared to the market capitalization peak of $3.34 trillion on June 18 local time, after the two-day decline on June 20 and June 21, Nvidia's market capitalization has evaporated by about $220 billion (TapTechNews note: currently about 1.6 trillion yuan).

Nvidia was only the number one stock in the US stock market for one day on June 18 (the US stock market was closed on June 19), and at the close of Friday, Microsoft was the number one in the US stock market in terms of market capitalization, with a total market capitalization of $3.34 trillion.

Some shareholders ridiculed Nvidia CEO Jensen Huang for having to take the blame for this because he affected the market sentiment. According to the documents disclosed by the US Securities and Exchange Commission (SEC), Jensen Huang reduced his holdings of 120,000 shares of the company's stock every day on June 18, June 17, June 14, and June 13, and the total market capitalization corresponding to the reduced shares on these four days is about $63.08 million. Jensen Huang also plans to reduce his holdings of 120,000 shares of the company's stock on June 20, corresponding to a market capitalization of $16.3049 million.

However, these shares account for a relatively small proportion of Jensen Huang's total holdings. As of March 25 this year, Jensen Huang cumulatively held over 90 million shares of Nvidia. Moreover, Jensen Huang's reduction plan was actually announced earlier and not a sudden reduction. According to the 10-Q file released by Nvidia at the end of May, Jensen Huang set up a so-called 10b5-1 share sale plan on March 14 this year to sell up to 600,000 shares before March 31, 2025. It is worth noting that when this share sale plan was set up, Nvidia had not split its shares. This month, Nvidia completed a 1-for-10 share split.

At the same time, Nvidia's executives are also reducing their holdings and cashing out. According to the data compiled by WashingtonService, excluding the impact of the 1-for-10 share split on June 10, Nvidia executives and directors have so far sold about 770,000 shares of Nvidia, cashing out more than $700 million (about 5 billion yuan). Since the announcement of Nvidia's first fiscal quarter results on May 22, more than a third of the insiders have reduced their holdings.