TLDR
- CEO Jensen Huang reduced direct reports from 55 to 36 executives
- Huang sold $41.3 million in Nvidia stock between October 13-15 through pre-arranged trading plan
- Nvidia maintains flat organizational structure with group meetings instead of one-on-one sessions
- Key leaders include Ian Buck, Michael Kagan, Bill Dally, and Colette Kress
- Wall Street maintains bullish outlook with 36 of 38 analysts rating stock as Buy
Nvidia made changes to its leadership structure as CEO Jensen Huang reduced his direct reports from 55 to 36 people. The company shared an updated internal chart showing the new arrangement.
The restructuring comes while Nvidia holds a market value of nearly $4.37 trillion. The company has grown rapidly as demand for AI hardware continues to increase.
The slimmed-down team still includes several well-known figures at the company. Ian Buck now serves as Vice President of hyperscale and high-performance computing after building the CUDA software platform.
Chief Technology Officer Michael Kagan and Chief Scientist Bill Dally remain in their positions. Executive Vice President and Chief Financial Officer Colette Kress also continues as a direct report to Huang.
Other senior leaders include Executive Vice President of Operations Debora Shoquist and co-founder Chris Malachowsky. These executives cover responsibilities ranging from chip design to automotive systems.
Nvidia shares closed at $179.83, down 0.11% on the day. The stock has gained 60.3% over the past six months.
Stock Sales Through Trading Plan
Between October 13 and October 15, Huang sold $41.3 million worth of Nvidia stock. The sales occurred through a pre-arranged Rule 10b5-1 trading plan.
On October 13, Huang completed four transactions. The prices ranged from $186.66 to $189.46 per share.
He sold 3,196 shares at $186.66, followed by 26,114 shares at $187.73. The largest transaction that day involved 36,295 shares at $188.44.
October 14 saw five separate transactions with prices between $180.49 and $184.09. The sales included 28,335 shares at $181.50 and 23,469 shares at $182.25.
On October 15, Huang executed eight transactions. Prices ranged from $178.13 to $184.63 per share.
After these sales, Huang directly owns 70,333,203 shares of Nvidia common stock. He also holds millions of shares indirectly through trusts, partnerships, and limited liability companies.
Management Structure Stays Flat
Huang maintains what he describes as a flat organizational structure. The company avoids multiple layers of management despite its size.
Huang prefers a wide circle of leaders who report directly to him. This approach keeps information flowing quickly across the company.
During an interview at The New York Times DealBook Summit, Huang explained his preference for group meetings. He avoids regular one-on-one sessions with executives.
The group meeting approach ensures all leaders receive the same information simultaneously. This helps maintain alignment across different parts of the business.
The smaller leadership circle may help Nvidia handle its rapid expansion. The company transformed from a gaming chip maker to a major AI hardware supplier.
Reducing duplicate roles could improve efficiency while keeping decision-making fast. Nvidia continues to expand across data centers, cloud platforms, and new AI markets.
Wall Street analysts remain positive on the stock. Out of 38 ratings, 36 analysts recommend buying shares.
The average price target stands at $224.38. This implies roughly 25% upside from current levels.
Nvidia reported revenue growth of 71.55% over the last twelve months. The company maintains a strong financial position according to recent analysis.
The post Nvidia (NVDA) Stock: CEO Huang Sells $41 Million While Cutting Leadership Team appeared first on Blockonomi.
Source: https://blockonomi.com/nvidia-nvda-stock-ceo-huang-sells-41-million-while-cutting-leadership-team/