To The Moon

$NVIDIA(NVDA)$

In the world of high-performance computing, no company has captured the AI zeitgeist like Nvidia. Over the past 18 months, the chipmaker has redefined not only its own market valuation but the direction of the global technology sector. Yet just as Nvidia reaches new all-time highs, a development is stirring investor debate:

CEO Jensen Huang is selling stock—lots of it.

On the surface, that might raise a red flag. After all, Huang is not just Nvidia’s founder; he’s the driving force behind the company’s meteoric rise. He is to Nvidia what Elon Musk is to Tesla, or what Steve Jobs was to Apple. When an executive of that stature sells millions in company stock, investors rightfully ask: What does he know that we don’t?

Is it time to worry? Is this a signal to sell or simply a personal financial move?

Let’s unpack what’s happening, dig into the filings, consider the broader context of insider selling, and evaluate Nvidia’s long-term outlook. As a fellow shareholder who has studied Nvidia closely, I’ll also share why I’m not selling—and why I believe this moment reflects less of a warning and more of a natural evolution in the life cycle of a generational company.

The Insider Sales: What the Data Shows

According to recent SEC Form 4 filings, Jensen Huang sold multiple batches of Nvidia shares between June 18 and June 23, 2025. These transactions were executed at prices ranging between $142 and $144, right around the company's recent record highs after a stellar run-up in 2025.

The sales were not from a single account. They were made through a variety of vehicles, including personal holdings, family trusts, irrevocable trusts, and other entities commonly used for wealth management and estate planning.

This is important: the total number of shares sold, while substantial in dollar value, is relatively minor compared to Huang’s overall stake. Even after the recent transactions, Huang still owns roughly 75 million shares of Nvidia, worth over $10 billion. The man remains deeply tied—financially and symbolically—to Nvidia’s long-term success.

Why Insider Selling Triggers Concern

When a CEO starts selling stock, the market pays attention—and rightly so. CEOs are the most informed participants in a company’s ecosystem. They’re in meetings with customers, regulators, supply chain partners, and product teams. They see what’s coming well before the public does.

This is especially relevant for Nvidia. The company generates about 50% of its revenue from a handful of hyperscaler clients, including Microsoft, Amazon Web Services, Meta, and Google Cloud. If those companies begin signaling weaker demand for Nvidia's GPUs, delayed shipments, or tighter procurement cycles, Jensen Huang would know before you or I see it in an earnings report.

Additionally, Nvidia operates on the bleeding edge of innovation. If its next-gen GPU or data center platform is facing design delays, yield issues, or lower-than-expected performance, that could negatively affect future quarters. And if Huang were aware of this and began selling stock, it could imply deteriorating internal confidence.

In the past, insider selling has preceded major price corrections. During the meme stock boom of 2021, AMC CEO Adam Aron sold aggressively near the top, raising eyebrows. It later became evident that the company’s fundamentals were completely disconnected from its soaring stock price. The insiders knew it—and acted accordingly.

It’s no wonder investors get uneasy when insiders sell.

The Bigger Picture: Not All Insider Selling Is Bearish

But insider selling is not inherently a red flag. In fact, context is everything.

Executives often sell for personal reasons: estate planning, charitable giving, portfolio diversification, or even to cover taxes. It’s only when insider selling is paired with other warning signs—declining fundamentals, reduced guidance, weakening margins—that it becomes a real concern.

Let’s apply that to Nvidia:

• Jensen Huang remains Nvidia’s largest individual shareholder, with tens of billions in stock remaining.

• There’s no sign of weakening product demand; in fact, the company continues to report record-breaking results.

• Nvidia’s forward guidance remains aggressive, with new product launches scheduled and major hyperscaler contracts continuing.

Moreover, executive compensation structures often include pre-scheduled sales through 10b5-1 plans, where shares are sold automatically based on pre-set criteria. It’s possible—though not confirmed—that these recent sales were part of such a plan.

Diversification and Executive Psychology: Why Selling Makes Sense

There’s another dimension to consider: the psychological burden of concentration risk.

Imagine having $10+ billion of your personal net worth tied to a single asset—even if that asset is your own company. Any fluctuation in the stock price impacts not just your personal wealth, but your family's financial future for generations. That creates immense pressure.

From a behavioral perspective, this can impair judgment. You may become overly cautious or too aggressive, both of which are dangerous in a high-stakes leadership position. Trimming that exposure—diversifying just a small part of your wealth—can alleviate pressure and enable clearer decision-making.

As a former professional poker player, I can relate to this. When you’re at the table with your entire bankroll on the line, fear clouds your thinking. The best players mitigate this by staking, partnering, or diversifying their exposure—freeing up their minds to think in probabilities rather than outcomes. CEOs are no different when managing tens of billions in corporate value.

Jensen Huang is not walking away from Nvidia. He’s simply managing the massive wealth he’s built in a prudent, responsible way. And that’s not something investors should fear.

Nvidia’s Fundamentals Remain Exceptionally Strong

Let’s return to the core: Nvidia’s business is still humming on all cylinders.

• Revenue growth: The company recently posted year-over-year revenue growth above 200%, driven by booming AI demand.

• Gross margins: Margins are expanding due to pricing power in the high-end data center GPU market.

• Balance sheet: Nvidia carries very little debt, high cash reserves, and capital allocation flexibility.

• Ecosystem moat: Nvidia’s CUDA software stack, dominance in training workloads, and expanding reach into inference, networking, and AI infrastructure give it a competitive edge that is extremely difficult to displace.

Furthermore, the upcoming Blackwell architecture, which will power the next wave of AI supercomputers, is expected to continue Nvidia’s hardware lead. Early customer interest is strong, and Nvidia's supply chain capacity is scaling accordingly.

Add to this the explosive demand for AI training, sovereign AI infrastructure buildouts by nations, and cloud capex rebounds—and you have a business with multi-year visibility and pricing power.

In short: There is no sign that Nvidia’s operational trajectory has been impaired. Insider selling alone doesn’t change that thesis.

Valuation: High, But Not Irrational

One might argue: isn’t Nvidia’s stock already priced for perfection?

It’s true that Nvidia trades at a premium multiple—north of 35x forward earnings and over 20x sales. Those numbers are hard to ignore.

But you must consider the growth rate, margins, and total addressable market (TAM). Few companies in history have achieved Nvidia’s scale while still doubling revenue and expanding operating margins. When a company is simultaneously the fastest grower and the most profitable in its sector, traditional valuation metrics start to bend.

Valuation remains a risk, especially if AI spending plateaus or if interest rates rise significantly. But as of now, Nvidia continues to earn its premium. It is the “arms dealer” of the AI revolution, and there is no comparable alternative.

Investor Takeaway: Don’t Panic—Context Is Key

To sum it up:

• Yes, Jensen Huang is selling Nvidia shares.

• No, that does not automatically signal trouble.

• Yes, you should always stay alert when insiders sell, especially in large amounts.

• But no, I don’t believe this is a reason to panic, exit, or abandon the long-term Nvidia thesis.

Unless new information surfaces—like a sharp drop in guidance, executive departures, or major customer cancellations—this looks like a routine financial decision by a very wealthy, highly concentrated individual.

As a long-term investor in Nvidia, I continue to hold my position. I purchased shares at around $90 earlier this year and named Nvidia one of my Top 9 Stocks for 2025, a rating I reaffirmed as recently as June 6.

This is not a meme stock. This is not a speculative gamble. Nvidia is one of the most important companies in the world right now. And it remains, in my view, a core position for any investor betting on the future of AI, cloud computing, and next-gen infrastructure.

What to Watch Next

Here’s what I’ll be watching to validate or challenge this thesis:

• Next quarter’s earnings: Watch for signs of decelerating growth or margin compression.

• Customer commentary: Especially from Microsoft, Meta, and Amazon—any signs of pullback in GPU orders?

• Product execution: Are Blackwell chips on time? Are yields high? Is demand robust?

• Further insider selling: One-off sales are normal. A sustained liquidation trend across execs is not.

If those signals remain healthy, I’ll continue to hold. Possibly even add on dips.

Disclaimer: I want to make it clear that I am not a financial advisor, and nothing I say is intended to be a recommendation to buy or sell any financial instrument. Additionally, it's important to remember that there are no guarantees or certainties in trading or investing, and you should never invest money that you can't afford to lose.

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