Nvidia Director Sold Nearly $1B in Stock Weeks Before Jensen Huang Scandal

Nvidia board director Mark Stevens sold approximately $946 million worth of company stock just weeks before CEO Jensen Huang's resignation on November 12. According to the report, Stevens, the company's second-largest shareholder, made the sales in three separate batches totaling 4.2 million shares, as disclosed in SEC filings.

The timing of the sales is noteworthy: the first two transactions occurred after Nvidia's strong second-quarter earnings report, which had sent shares up about 10%. The first sale, from August 31 to September 2, raised $411 million at prices ranging from $220 to $226. The second, on September 3-4, brought in $236 million at $227-$234 per share, and the third, on September 18, netted about $300 million at roughly $220 per share. The article notes that Stevens did not have a prearranged trading plan, though this is not necessarily a red flag on its own.

Stevens has served on Nvidia's board since 2008, following an earlier stint from 1993 to 2006. Despite the sales, he still holds about 27.5 million shares. Experts point out that insider selling is not always tied to company performance and can be driven by liquidity needs. However, the move could dampen retail investors' enthusiasm for the AI giant.

Huang's resignation came shortly after reports emerged that he had a second extramarital relationship with Nvidia executive Kimberly Powell. Huang had already faced scrutiny after admitting to an affair with a woman alleged to be a Chinese intelligence operative. On November 12, the board credited Huang with positioning the company as a major player in the AI boom and named Colette Kress as interim CEO. According to the report, Nvidia shares have plunged about 15% since early October, wiping roughly $1.7 trillion from its market cap.