NVIDIA has cashed out approximately 200 million US dollars in the past month, what impact will it bring?

On July 22nd local time, the three major US stock indices opened with mixed results. Semiconductor stocks in the US market collectively declined, with AMD and Micron Technology dropping by more than 3%, Broadcom, TSMC, NXP, and Myricom Technologies falling by more than 2%. Notably, NVIDIA's stock price opened lower and its decline widened by nearly 4% at one point. NVIDIA dropped by 3.09% to 166.09 US dollars. According to the documents disclosed by the US Securities and Exchange Commission (SEC), since June 20th, Huang Renxun has been reducing his holdings at a rate of 50,000 shares per day: on June 20th, 23rd, and 24th, he reduced 50,000 shares each day, with a single-day cash flow of over 7 million US dollars. Since June 25th, the reduction scale has significantly increased, turning to 75,000 shares per day. In just 6 trading days from June 25th to July 2nd, Huang Renxun accumulated a cash flow of over 70 million US dollars; from June 20th to July 18th, the cumulative cash flow was approximately 200 million US dollars.

The significant decline of NVIDIA has caused considerable repercussions in the financial sector, bringing about complex and multifaceted impacts. Firstly, it affects the sentiment of the financial market. Huang Renxun's Underweight behavior has directly increased the supply of stocks in the market， while the demand has not increased simultaneously， resulting in a short-term decline in stock prices. For example， after the US stock market opened on July 22nd， NVIDIA's stock price dropped by nearly 4% at one point， and finally closed down by 3.09%. Such fluctuations expose short-term investors to the risk of paper losses， especially leveraged traders may trigger forced liquidation. Although the Underweight may be for reasonable reasons such as personal financial planning or tax optimization， the market may still interpret it as a signal of management's lack of confidence， leading to fluctuations in market sentiment. The Underweight behavior of executives often attracts extensive media and investor attention， triggering speculation and discussions about the reasons for the Underweight， the company's future prospects， and industry trends. Such speculation and discussions may further intensify market sentiment fluctuations.

Secondly， it affects investors. As the core management of NVIDIA， Huang Renxun's Underweight behavior is interpreted by the market as a cautious attitude towards the company's future prospects， triggering investor concerns. Some investors may choose to follow the Underweight to avoid risks， while others may consider it an opportunity to buy low. This divergence in investor behavior will also affect market liquidity， thereby influencing the efficiency of financial market operations. For long-term investors， Huang Renxun's Underweight behavior may be regarded as a signal for observing the company's fundamentals and industry trends； for short-term traders， they may focus more on the short-term impact of the Underweight on stock prices and make trading decisions accordingly. Such different investment strategies will also affect the volatility of the financial market.

Thirdly， it affects the liquidity of the financial market. The Underweight behavior of Huang Renxun has increased the supply of stocks in the market， which may have an impact on market liquidity. If the Underweight scale is large and concentrated， it may lead to a temporary tightening of market liquidity and affect the trading activity of the financial market. Technical investors may regard the Underweight as an overbought signal， combined with historical experience， choose to temporarily stay out and wait and see. Additionally， some investors may choose to take profits and exit the market due to concerns about market overheating， further exacerbating stock price fluctuations.

In conclusion， NVIDIA's approximately 200 million US dollars cash out in the past month has stirred waves in the financial market. However, this current reduction in holdings may merely be a minor setback in the company's development process. Moving forward, it is still necessary to closely monitor the changes in the company's fundamentals and the trends in the industry.