Nvidia CEO Jensen Huang cashes out $1 billion as AI chip demand fuels massive stock rally

Core Insights - Nvidia's CEO Jensen Huang has completed a significant pre-planned stock sale, offloading over $1 billion worth of shares since June, fulfilling a plan to sell up to six million shares by year-end [1][2] - The stock sold by Huang was initially valued at $865 million, but due to a 40% increase driven by demand for AI processors, the final sale value exceeded $1 billion [2] - Nvidia reached a $5 trillion market value, becoming the first company to do so, and has created three new billionaires this year, including board member Brooke Seawell [3] Company Performance - Huang's net worth has increased to $175.7 billion, gaining $61.3 billion this year, while he retains a 3.5% stake in Nvidia after selling over $2.9 billion of stock since 2001 [4] - Nvidia insiders, including Huang, sold nearly $1.5 billion of stock through Q3, with total insider sales in 2024 exceeding $2 billion, a significant increase from $462 million in 2023 [6] Industry Trends - The AI boom has led to a wave of insider selling, with Arista Networks CEO Jayshree Ullal selling $861 million of stock, ranking just behind Amazon's Jeff Bezos in insider sales [5] - Nvidia has been a standout in wealth creation during the AI surge, with seven billionaires emerging from the company, including Huang [6] - Nvidia board member Tench Coxe and director Mark Stevens have also joined the ranks of the world's wealthiest, with net worths of $7.5 billion and $12.5 billion, respectively [7]