Huang Renxun once again takes action: cashed out over ten million US dollars in a single day as the stock price of NVIDIA Corporation (NVDA.US) hits a new high.

According to the documents submitted to the US Securities and Exchange Commission, on Friday (July 18), as NVIDIA Corporation (NVDA.US) stock price hit a new all-time high, NVIDIA Corporation CEO Jensen Huang decisively sold another 75,000 shares of stock, worth approximately $12.94 million. As early as March of this year, Jensen Huang disclosed a plan to sell 6 million shares of NVIDIA Corporation stock based on the 10b5-1 rule, and Friday's sale was part of this plan. The 10b5-1 trading plan allows insiders of public companies to pre-determine the sale of a specified number of shares at a set time. The purpose of this plan is to avoid suspicion of insider trading and ensure transparency and fairness in transactions. Since last month, Jensen Huang has initiated this round of selling, and according to another document from the US Securities and Exchange Commission, earlier this week, Huang had already sold 225,000 shares of NVIDIA Corporation stock, totaling approximately $37 million. Since starting to sell NVIDIA Corporation stock this year, Jensen Huang has sold nearly 1.3 million shares, totaling close to $200 million. In the previous year's pre-arranged selling plan, Huang cashed out over $700 million. Is NVIDIA Corporation's stock price too high? Since ChatGPT caught fire and ignited global demand for artificial intelligence and GPUs, NVIDIA Corporation's stock price has skyrocketed in the past three years, and Jensen Huang's personal net worth has also surged. As of now, NVIDIA Corporation's market value has exceeded $4 trillion, making it the world's most valuable company. On the Friday when Jensen Huang sold his shares, NVIDIA Corporation's stock price also hit a new all-time high. However, many Wall Street analysts have recently begun to warn of the risks of overvaluation of NVIDIA Corporation, and Huang's selling actions seem to indirectly confirm this. BTIG's chief market technician, Jonathan Krinsky, said: "We are definitely in overbought territory. While this doesn't mean the price will reverse soon, it is a warning sign to be cautious. Market sentiment has been overly optimistic, and it's almost at the point of euphoria now." Currently, NVIDIA Corporation's forward P/E ratio is 34 times, although still lower than the average of around 40 times over the past five years, it has significantly increased in recent months compared to the level of less than 20 times in April. As the second-quarter earnings season for US stocks recently kicked off, whether NVIDIA Corporation's performance can support its current valuation will be a key focus. NVIDIA Corporation plans to announce its earnings at the end of August. This article is reprinted from "Cailianshe," GMTEight editor: Liu Jiayin.