Transcription
Nvidia CEO Jensen Hong is selling huge chunks of shares of Nvidia stock. Should you be concerned as an Nvidia shareholder? Should you sell your shares? Also, I'll talk about those concerns in this video here.
As an Nvidia shareholder myself, I'll share with you my opinions and my thoughts on how I feel about Nvidia CEO selling shares of Nvidia stock. I want to thank the Mly for sponsoring this video. Visit full.com/parkkev for the 10 best stocks to buy now.
Right. So, here I have the form for SEC statement of changes in beneficial ownership, which you can retrieve at um Nvidia's website, or if you use a data aggregator like myself, I like to use fiscal.ai. They get a lot of information relatively quickly. There's a link in the description. So Nvidia CEO here reporting changes in beneficial ownership. You can see the file here. John Sanen Hang, president and CEO of Nvidia Corporation. And here you have the stated sales of Nvidia common stock, which range between June 18th and June 23rd. And the amounts range from 40,000 shares down to 3,500 shares. And the price of sale range from $144 down to $142. So all around uh the recent highs of Nvidia stock. Also, Nvidia CEO Jansen Wong selling shares from its uh from his family trust uh by partnerships and irrevocable trusts. And so Nvidia CEO Jensen Hong holds Nvidia shares in various types of accounts, including personal accounts, family accounts, trust accounts, etc. But the gist of it is that Nvidia CEO Jensen Wong is selling shares of Nvidia stock. And so should you be concerned?
Uh I am an Nvidia shareholder myself. Uh thankfully I bought Nvidia stock at around uh $90 a share, and I reported that to you, those purchases to you uh about two months ago, a little over two months ago when I made those purchases. I've also rated Nvidia stock as one of the best nine stocks to buy right now. And I've updated that recommendation to investors following my channel. And I last made that update on June 6, 2025, reiterating the fact that I believe that this was one of the best nine stocks to buy right now. And I've had it rated as one of the best nine stocks all year long in 2025. So, I've had this stock and I've been bullish on this stock. And how do I feel about these recent share of sales? Well, there's a couple of ways to think about this situation. And let me share with you each of those perspectives.
On the one hand, there is nobody that knows more about the company than the CEO. And Jensen Huang is the CEO of Nvidia, has been the CEO of Nvidia for decades. So, nobody knows more about the company and its prospects than the CEO. So, if you have someone that knows so much about the company, right, is having conversations with their biggest customers, right? Nvidia has a high concentration of sales. Two relative relatively few like Alphabet, Microsoft, Meta Platforms, and Amazon make up roughly 50% of Nvidia's uh total revenue. And so Nvidia and CEO Jensen Wong is undoubtedly in constant communication with those companies, talking about future prospects, talking about future deals, negotiating sales, negotiating deliveries, negotiating terms. And so these are things that investors don't know about yet. They don't know about these conversations and the negotiations and how the CEO feels about the company's prospects, right? So, if he's seeing that the largest customers are maybe pulling back orders, maybe asking for discounts, maybe telling the CEO uh about plans to cut back on purchases, and so if the CEO is seeing that kind of conversation and that kind of uh feedback from its largest customers and then okay, knowing that information, then going out and saying, "Okay, I want to sell some of my stock because I see that demand for my products and services are not as strong as I previously hoped." Right? So that's the concern from investors. That's what investors who don't have all that information start to worry about when the CEO is selling stock. They worry that the feedback that the CEO is getting in those conversations about the company's future prospects are not looking good.
Furthermore, the CEO has line of sight into the product pipeline. So talking with his team about the new products that are coming out, how are they looking? Is it looking like those products are going to be incredible that they're going to lead to further growth in the company's revenue and profits? Right? So talking to all of those various stakeholders, the CEO has all that information. And so when the CEO is selling the stock, it sends a signal to everyone else that maybe the prospects are not that strong. So that's the downside, right? I just provided you the downside scenario on why investors get concerned when the CEO is selling shares. Those are all reasonable concerns to have. Right? So now let's look at the other side, the other side of the scenario, and that is the fact that even after selling all of these shares the Nvidia CEO will own roughly 75 million shares of Nvidia stock. 75 million shares at the market price of uh around $140 or whatever the share price is uh as of the date of the most recent sale of Nvidia stock.
So there's still a large ownership of shares from the Nvidia CEO, and in fact it's a very large ownership, and it makes it challenging as an individual as an owner of a company to make decisions when so much of yours and your family's wealth depends on the company's performance. So it's high-stakes decision-making. It's something that, you know, I'm sure Nvidia CEO Jensen Hong is used to and knows how to perform well making these high-stakes decisions because he has so much experience doing that. But even still, it puts a little bit of a burden on the CEO, on the individual making these decisions when so much of your own personal wealth is on the line. And so it alleviates some pressure to have some of your wealth diversified away from Nvidia stock. So to sell some Nvidia stock and hold that investment in something else, hold that investment in cash and real estate, in government bonds, in something else so that you don't have so much pressure when making decisions about the future prospects of your company.
I'll give you some personal experience. Some of you might already know that prior to becoming a professional investor, professor, an author, an investor, I was a professional poker player. And professional poker uh requires a lot of high-stakes decision-making. Whether to make a big bet, to fold your hand, um those are high-stakes decisions that could cost you thousands and thousands of dollars. And so sometimes when the decision is so large, so high stakes, it's difficult to make an effective decision because your brain is thinking about the outcome on your personal wealth and your brain is not spent uh is not spending time calculating the probabilities and trying to make the most effective decision at the moment. So sometimes I would make deals with partners to alleviate some of that risk where I would say uh put up a certain amount of money and we share the outcome of the results of this poker tournament. And so if I win I keep 50% and you keep 50%. And by decreasing that burden of the outcome, it allowed me to make a little bit uh it allowed me to make decisions with a little bit lower pressure, right? And it did help in my decision-making to have some of that burden of risk alleviated to a partner. And so that's the positive side of this situation where as an investor and as a shareholder knowing that experience, that personal experience of my uh career as a poker player, I'm okay with the CEO selling the shares of stock right because I know it's going to alleviate some pressure from the CEO having some of his wealth somewhere else, not in Nvidia stock, so that he can continue to make decisions, high-stake decisions running the company without thinking about his personal wealth, his family's wealth, and you know, generations down the line. I'm sure Nvidia CEO has enough wealth to last him and his family generations, but they still want to secure more of their family, uh, more of their family's future and not have it so dependent on Nvidia stock.
So, as an Nvidia shareholder myself, I'm okay with the CEO selling the stock. I'm not at all concerned about the company's future prospects because of these share sales. So, I'm not concerned that the CEO is learning something about the company and wants to sell the stock as a result of thinking that the company has poor prospects. So, in this situation, I'm not thinking that's the case. In other situations, and this goes on a case-by-case basis, I I I would be concerned if there is other alarming situations where or other situations where I see that the stock is obviously overvalued and the CEO is looking to dump all of his personal and family's wealth that's connected to the company stock. And I uh reported on that a couple of years ago when I wasn't on YouTube yet and I was still a writer and I was talking about a situation with AMC when it became a meme stock and the share price rose to extraordinary levels and the CEO at the moment, Adam Aaron, was selling all of his and his family's shares of AMC stock, trying to sell as much as possible. In that situation, that was a signal to investors to sell their shares also. And that was yet another signal to investors at the time, which there were many, to sell your AMC stock because the CEO at the moment saw what was an incredibly overvalued stock and wanted to sell as much as possible because it was a great opportunity to sell shares, take profits, and put them into something that wasn't so overvalued. This is not one of those situations, this stock. I don't see it as being ridiculously overvalued the way AMC stock was back in 2021, and so I don't see this as an alarming situation.
Thank you for watching this video. I truly appreciate it. I know there's a lot you could be doing with your time and a lot of other videos you could be watching. So, I truly appreciate that you chose to watch this one. If you want to see more videos just like this, hit the subscribe or the like button. They'll both help me make more videos just like this one.