$NVDA CEO Jensen Huang has sold nearly $100 million worth of Nvidia stock so far this month. In this week alone, he sold $40,226,189 worth of Nvidia stock. While the bulls and people on the sidelines think that this is no big deal because he has over $10 billion or $50 billion or whatever amount of Nvidia stock left in his holdings, I think that those people are missing the forest for the trees.

Source: TrendSpider

The amount of stock that someone has left to sell is important, but for a very large company, I think it's less relevant. Many of the big companies that we see collapse, like SVB or First Republic, have executives still holding onto most of their shares and only cashing out fewer portions of stock before the crash. Since those "fewer portions" are significant in amount (an amount that's perfect to retire on), people will say, "of course we knew that [SVB] would collapse because we saw executives selling their shares ahead of time."

The CEO of SVB only cashed out $3.6 million worth of SVB shares less than two weeks before the bank collapsed. The value of the rest of his SVB shares were valued at more than $20 million before the crash. He left so much money on the table and allowed it to evaporate in the crash. At least he has $3.6 million. $GPRO founder Nicholas Woodman sold $122 million worth of GoPro stock four months after his company went public through an IPO. Sure, he had a lot more stock to sell at the time but the stock collapsed. Even as GoPro stagnates and hovers above $5 and below $10 for a long time, Nicholas Woodman continues to sell 200,000 shares of GoPro consistently. Sure, the proceeds are $1 million instead of $100 million but at least he secured his $100 million and any extra million he receives these days wouldn't mean much to him.

If you were Jensen Huang, and in this month alone, you deposited $100 million into your bankrupt, you would be able to sleep well at night. All the flashing bearish signals that you see in the stock's technicals wouldn't bother you because you've secured $100 million for yourself. You know that usage for AI applications is decreasing and that means less demand for Nvidia chips and that adds bearish pressure to Nvidia's stock. Nvidia investors won't expect any stock pumping antics from Jensen Huang because he already has a lot of money and I doubt he will be craving for more money. If Nvidia crashes tomorrow, people will focus on the $100 million he cashed out and not on the billions of dollars worth of stock that he left on the table. Intrinsically, Jensen Huang has no other reason to keep pumping Nvidia's stock higher because he already has enough money to live a comfortable life for the next 100 years.

"Selling $100,000 worth of stock isn't concerning. Selling a hundred million dollars worth of stock is something." - Anonymous

"There will always be money left on the table before the music stops." - Anonymous