Jensen Huang, Nvidia’s President and CEO, cashed in $37.6 million in stock sale as the chipmaker continues to reach new highs. Notably, Huang sold 225,000 shares of NVDA common stock over the past few trading sessions. The sale is part of Huang’s plan to sell up to 6 million shares through a 10b5-1 trading plan, disclosed on March 20, which is expected to run until December 31.

The CEO seems to be capitalizing on the recent rally in Nvidia shares, amid positive news on multiple fronts. Yesterday, Nvidia hit a fresh 52-week high of $172.40 following the news that the chip export ban to China had been lifted. Additionally, on July 9, Nvidia became the first U.S. public company to reach a $4 trillion market capitalization, driven by soaring demand for artificial intelligence (AI), surpassing Microsoft and Apple.

A corporate insider’s share sale usually signals caution about the company’s future potential. However, insiders may sell shares for various reasons, including financial or personal obligations.

A Closer Look at the Insider’s Transactions

According to the Form 4 filed with the SEC on July 15, Huang sold 225,000 shares of Nvidia between July 11 and July 15. Shares were sold in multiple tranches at weighted average prices ranging between $162.7089 and $171.4854 apiece.

It is worth noting that this latest sale represents less than 1% of Huang’s total shareholding. Following the transaction, the CEO still owns roughly 858 million NVDA common shares, both directly and through trusts, highlighting that Huang remains strongly aligned with the company’s future prospects.