Nvidia's $3.7T Market Cap Boosts CEO Huang's Wealth to $135B as he Offloads 200K Shares at Peak Price

Nvidia (NASDAQ:NVDA) chief executive officer Jensen Huang's net worth soared to £98.25 billion ($135 billion) after his 4% stake in the company surged in value as the stock price reached an all-time high of £112.82 ($155.02) on Thursday. Nvidia's market cap hit £2.73 trillion ($3.76 trillion) to become the most valuable company in the world, ahead of Microsoft (NASDAQ:MSFT).

According to the latest regulatory filing with the US Securities and Exchange Commission, Huang sold 200,000 Nvidia shares at the height of the latest stock rally, which would be worth about £22.56 million ($31 million) at current trading levels.

The filing revealed that the CEO holds over 800 million shares of the AI giant via trusts, partnerships, and limited liability companies. The latest stock sale is part of a March 10b5-1 trading plan disclosed in the company's quarterly Form 10-Q, which indicates that Huang intends to offload 6 million Nvidia shares worth over £663.73 million ($912 million) by the end of 2025.

The remarkable recovery in Nvidia's stock price from the tariff-induced crash in April can be attributed to the surge in demand for AI products and services, as reflected in the company's Q1 year-over-year revenue jump of 69%, with adjusted earnings per share rising 33% to £0.59 ($0.81), on the back of the rapid growth in the data centre segment. 'Excluding the $4.5 billion charge and related tax impact, first quarter non-GAAP diluted earnings per share would have been $0.96,' the company had said in the earnings release.

While share prices declined after Huang said 'the $50 billion China market is effectively closed to US industry,' it may not impact the company as much as expected, as US President Donald Trump said yesterday he signed a deal with China to formalise a trade truce. 'We just signed with China yesterday,' Trump said during an event at the White House, without disclosing details of the pact. Meanwhile, China said 'both sides have confirmed further details on the framework.'

Huang sold nearly £509.44 million ($700 million) worth of Nvidia shares in 2024 under a 10b5-1 trading plan. These prearranged stock sales are often adopted by corporate insiders, including board members and top executives, to offload shares at predetermined intervals or prices, enabling them to diversify their holdings or optimise liquidity.

This way, they are able to avoid allegations of insider trading as the plan is established when they don't possess material non-public information.

Wedbush Securities managing director Dan Ives said he sees Nvidia reaching a £3.63 trillion ($5 trillion) market cap. Elsewhere, Loop Capital had an even more ambitious forecast, predicting that the AI giant could reach a £4.36 trillion ($6 trillion) market cap, citing its dominant position in the industry.

The majority of analysts have a buy rating on NVDA stock, with an average 12-month stock price target of £127.57 ($175.28), according to TipRanks. Loop Capital reiterated its buy rating on the stock and set the highest stock price target of £181.95 ($250) per share, implying a 61% upside from current trading levels.

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