NVIDIA is at the center of the AI revolution, and its share price has skyrocketed. This rally has made the company’s executives and directors extremely wealthy, and their stock sales highly visible. Whenever top insiders sell shares in a soaring stock, questions follow.
Are these trades routine, pre-scheduled sales, or do they hint at something more?
Given how far NVIDIA’s valuation has climbed, insider selling has been closely scrutinized by investors and journalists alike.
This article breaks down every notable insider-trading allegation involving NVIDIA; the facts, timelines, and what regulators and courts have said, or haven’t said, about them.
TL;DR
- NVIDIA’s explosive stock rise during the AI surge has put executive stock sales under the spotlight.
- 2017–2024 lawsuits alleged NVIDIA misled investors about crypto-fueled revenue, with some suits mentioning insider trading, but no SEC or DOJ charges followed.
- $1.8B+ in insider sales occurred in 2023–2024, with CEO Jensen Huang and others offloading shares under legal 10b5-1 plans.
- No formal insider trading investigations have been launched against NVIDIA executives in the past decade.
- The only SEC action was a $5.5M fine in 2022 for failing to disclose crypto-related revenue, not for insider trading.
- Experts say the trades were legal, but clustered, high-volume selling still raises concerns over executive confidence and transparency.
What Is Insider Trading?
Insider trading means buying or selling stock based on material, nonpublic information. If an executive knows about a big earnings beat before it’s announced and buys shares, that’s illegal.
It’s also illegal to tip someone else with confidential information, like in a 2012 SEC case against a former NVIDIA engineer for leaking earnings. Under U.S. law, Rule 10b-5 of the Securities Exchange Act bans this kind of trading.
However, executives can legally sell shares through Rule 10b5-1 plans, prearranged, automatic trading programs that aren’t influenced by real-time company developments.
These plans act as a legal safe harbor, assuming they’re adopted and executed correctly.
Key NVIDIA Insider Trading Concerns
Cryptocurrency Revenue and Related Lawsuits (2017–2024)
In 2017 and 2018, demand for NVIDIA’s gaming GPUs exploded due to cryptocurrency mining. Internally, management knew this demand came largely from crypto speculators. Shareholders later sued, accusing NVIDIA of misleading investors by attributing the revenue surge to gaming rather than volatile crypto activity.
Two lawsuits stood out: a consolidated securities fraud class action filed in 2018, and a derivative suit filed in 2019 targeting executives and directors for alleged breaches, including insider trading.
In 2023, a Delaware pension fund filed another derivative suit, claiming NVIDIA’s leadership hid crypto-fueled growth while insiders sold stock and reaped improper profits.
One Bloomberg Law report quoted the suit accusing board members of “self-dealing in corporate material, nonpublic information.” However, none of these civil allegations led to SEC or criminal charges against NVIDIA itself. The claims were largely about misleading statements, not explicit illegal trades.
NVIDIA’s own filings say these derivative suits are on hold, and that the company hasn’t recorded any liabilities, arguing losses are “not probable”. NVIDIA also successfully petitioned the Supreme Court to hear a related securities fraud appeal in December 2024.
In short, investor lawsuits have claimed insider trading, but they remain unresolved civil cases, not proven violations.
Executive Stock Sales During the AI Boom (2023–2024)
As AI mania drove NVIDIA’s stock to new heights in 2023 and 2024, insiders sold massive volumes of shares. Bloomberg reported over $700 million in insider sales in the first half of 2024.
By October, that figure had soared past $1.8 billion. Notable sellers included CEO Jensen Huang, who sold millions of shares through a 10b5-1 plan; directors Mark Stevens and Tench Coxe; and executives like EVP Ajay Puri and CFO Colette Kress.
TipRanks noted Coxe sold 1 million shares for $131 million in December 2024. Kress sold 66,660 shares for nearly $7.8 million in March 2025, also under a pre-scheduled plan.
Importantly, these sales happened after the stock had already surged, not ahead of bad news.
Still, the timing raised eyebrows. Times of India reported that Huang had been selling roughly $14 million of stock daily in mid-2024, sparking investor concerns despite those trades being prearranged.
Most of these large sales were executed under 10b5-1 trading plans. Because these plans are filed publicly and executed on fixed schedules, regulators treat them as compliant with insider-trading rules. The SEC even requires a waiting period between adopting a plan and selling.
So while investors may still speculate, no regulator has accused these insiders of wrongdoing.
Has NVIDIA Ever Been Investigated for Insider Trading?
No public record shows the SEC or DOJ opening a formal insider-trading investigation into NVIDIA executives over the last 10 years. No NVIDIA insider has been criminally charged with insider trading since at least 2015.
The last known SEC case tied to NVIDIA came in 2012, when a contractor leaked earnings data to hedge funds, not involving top executives. NVIDIA’s own 10-Ks and 10-Qs confirm there’s no pending regulatory inquiry into trading activity.
The only SEC action in recent years was a 2022 disclosure violation settlement, where NVIDIA paid $5.5 million for failing to fully report how crypto mining impacted its business. That case involved disclosure issues, not insider trading.
Are These Trades Illegal or Just Bad Optics?
Most experts agree: NVIDIA’s insider trades were legal.They were done through 10b5-1 plans or during open trading windows, not based on secret tips. Rules require a “cooling-off” period before sales begin, which NVIDIA insiders followed.
So far, the paper trail shows compliance.
That said, heavy insider selling can still look bad. As former SEC official Marc Fagel noted, “If insiders don’t have confidence in the stock, then why should I?”
That kind of perception risk is what some critics say NVIDIA hasn’t fully addressed. Transparency about timing and compensation could ease investor nerves. Some observers, like Ken Mahoney, argue that selling under a 10b5-1 plan shouldn’t worry investors.
Still, governance experts recommend caution. Over-reliance on unscheduled equity compensation or clustered sales can erode trust, even if they’re legal.
Bottom Line
In the last decade, NVIDIA insiders haven’t been found guilty of insider trading. Their massive stock sales have drawn headlines, but regulators haven’t pressed charges.
The only enforcement action came in 2022 and focused on crypto disclosure, not trading behavior. Most sales were executed under 10b5-1 plans, structured to prevent insider misuse.
But perception still matters.
Large, frequent insider sales can shake investor confidence, even when done by the book. NVIDIA could improve transparency and clarify the reasoning behind major executive sales.
For now, watchdogs and investors should keep monitoring filings and trade schedules. So far, the trades appear legal, but future scrutiny will likely focus on whether executive incentives remain aligned with long-term shareholder value.