Jensen Huang, CEO of NVIDIA./Courtesy of Reuters

Jensen Huang (62), the chief executive officer (CEO) leading Nvidia, a front-runner in artificial intelligence (AI) chips, has begun selling large amounts of company stock for the first time this year. Nvidia's stock has soared over 800% in the past two years as the AI boom took off, significantly increasing the wealth of its founder, CEO Huang. The total scale of Huang's stock sales is expected to reach approximately 1.2 trillion won by the end of this year.

According to the U.S. Securities and Exchange Commission (SEC) on the 25th, CEO Huang sold 100,000 shares of Nvidia between the dates of the 20th and 23rd (local time), securing about $14.4 million (approximately 196 billion won). This transaction marks the first deal under Huang's pre-trading plan, which he registered with the SEC in March to sell up to 6 million shares by the end of this year. The SEC has a system that requires corporate executives and board members to notify the trading volume and timing in advance to avoid insider trading suspicions.

CEO Huang still holds over 860 million shares of Nvidia. His equity stake is at 3.5%, with the value of his holdings based on the previous day's closing price amounting to approximately $125.5 billion (about 171 trillion won). Even if CEO Huang sells all 6 million shares of Nvidia as planned, his ownership percentage will only decrease by 0.25%.

According to the Bloomberg Billionaires Index, CEO Huang's net worth is $126 billion (approximately 172 trillion won), ranking him 12th among the world's wealthiest. Most of his assets are in Nvidia stock, meaning his wealth is virtually tied to the company's stock price.

The market does not interpret CEO Huang's stock sales as a pessimistic sign for Nvidia's future business. The Nvidia stock price also increased by 1.7% since the 20th, showing no negative movements. Last year, CEO Huang sold 6 million shares (totaling $700 million, approximately 95 billion won) according to a pre-announced plan, and it had little impact on the stock price.

Nvidia's stock price skyrocketed by over 800% by the end of 2022 as the launch of ChatGPT sparked interest in the AI market and the demand for high-performance GPUs (graphic processing units) essential for AI model training and operation soared. Nvidia, which dominates 80% of the AI chip market, became the top company by market capitalization in June of last year. Currently, it ranks third after Microsoft and Apple but has undoubtedly become a giant in the 'trillion-dollar club.'

CEO Huang continues to aspire to grow Nvidia into a comprehensive AI corporation. He aims to position the company not just as a chip manufacturer but as a comprehensive AI solutions provider encompassing hardware, software, and platforms. In the first quarter of this year, Nvidia recorded a revenue of $44 billion (approximately 60 trillion won), a 69% increase from the same period last year, with a gross profit margin of 72%. The latest AI chip, 'Blackwell,' has seen demand explode, with production already fully booked for this year.

The atmosphere on Wall Street is one of adjusting Nvidia's target stock price upward. Rosenblatt Securities set a target price of $200 for Nvidia, while several investment banks, including Bank of America, are suggesting prices above $150. Although Nvidia has not been able to sell high-performance GPUs in China, one of its largest markets for AI chips, its stock price has risen 9% this year, continuing a positive outlook. However, concerns have been raised about its high valuation. The forward price-to-earnings ratio reflecting Nvidia's earnings forecast for the next 12 months is around 45 times. This figure significantly exceeds that of its competitors, AMD (approximately 35 times) and Intel (approximately 20 times), as well as the average of the S&P 500 index (approximately 21 times).