Nvidia’s Insider Trim, Micron’s HBM Surge & Wolfspeed’s Chapter 11 Storm
Welcome, AI & Semiconductor Investors,
On June 20 and 23, Jensen Huang’s Rule 10b5-1 plan involved the sale of just 100,000 Nvidia shares, a minor transaction against his substantial stock holdings. Additionally, major updates are expected as Micron reports earnings soon, and WolfSpeed has more significant issues to address.— Let’s Chip In
What The Chip Happened?
💸 Nvidia: Jensen Huang’s $14 M Share Trim—More Dust Than Signal
📊 HBM Heat Check: Will Micron’s 3Q Blowout Keep the 46 % Rally Rolling?
🔻 Pre‑Packaged Lifeline, Shareholder Minefield
[Navitas Targets 800‑Volt AI Data Centers with GaN‑SiC Power Platform]
Read time: 7 minutes
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Nvidia (NASDAQ: NVDA)
💸 Nvidia: Jensen Huang’s $14 M Share Trim—More Dust Than Signal
What The Chip: Nvidia co‑founder and CEO Jensen Huang quietly sold 100,000 split‑adjusted shares on June 20 & 23, 2025, for about $14.4 million—the first trades under a new Rule 10b5‑1 plan adopted on March 20. The program lets him dispose of up to 6 million shares (≈ $865 million) by 31 Dec 2025—but even a full run‑off would shave less than 1 % off his gargantuan stake.
The Situation Explained:
💼 Pre‑programmed sale. Trades executed automatically under Huang’s March‑20 Rule 10b5‑1 plan, satisfying the SEC’s 90‑day cooling‑off rule.
🏦 Pocket change versus his holding. Huang still controls ≈ 859 million shares—about $120 billion of stock and 3.5 % of Nvidia’s float. The 6 M‑share cap equals 0.7 % of his stake. sec.gov
📈 Other insiders lining up. Nvidia’s latest 10‑Q shows CFO Colette Kress adopted a plan to sell 500,000 shares by Mar 2026, while long‑time director A. Brooke Seawell can unload ≈ 1.15 million shares by Jul 2025. sec.gov
🔄 Buy‑backs swamp insider supply. Nvidia repurchased 19 million shares for $2.3 billion between Apr 28 and May 23 2025—more than triple the total insider authorisations. sec.gov
🔒 Alignment intact. Even if Huang sells every authorised share, he will still own > 99 % of today’s holdings and remain the largest individual shareholder. sec.gov
🗣️ Company stance. An Nvidia spokesperson told Barron’s the transactions “are pre‑scheduled and executed automatically” under 10b5‑1 to avoid any appearance of insider trading.
Why AI/Semiconductor Investors Should Care: Insider 10b5‑1 sales rarely predict fundamentals; this one is tiny relative to daily volume and dwarfed by buy‑backs, so it shouldn’t move the price unless Huang accelerates the schedule. Focus instead on demand for Blackwell GPUs, export‑control headwinds, and guidance at the June 25 Investor Day. Huang still has over $120 billion at stake, keeping his incentives squarely aligned with shareholders.
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Micron Technology (NASDAQ: MU)
🚀 HBM Heat Check: Will Micron’s 3Q Blowout Keep the 46 % Rally Rolling?
What The Chip: Micron reports fiscal 3Q 25 results Wednesday, June 25, after the bell (call 4:30 p.m. ET). Wall Street wants proof that the high‑bandwidth‑memory (HBM) boom and firmer DRAM/NAND pricing can push gross margin above 38 % and keep August‑quarter guidance climbing. Anything less risks the ±8% post‑earnings swing that options traders have priced in.
The Situation Explained:
📊 Street vs. Micron: Consensus pegs $ 8.83–8.90 bn revenue and $ 1.55–1.60 EPS against Micron’s own guide of $ 8.8 bn ± $200 m and 36.5 % GM. Beating the GM line (> 38 %) and guiding August GM > 39 % are bulls’ “must‑have” items.
💥 HBM sold‑out: CEO Sanjay Mehrotra told investors, “our HBM is sold out for calendar 2025.” 2Q HBM revenue crossed $ 1 bn, and on June 12, Micron began shipping 36 GB, 2 TB/s HBM4 samples, first in the industry.
📈 Pricing tailwind: Samsung raised DDR4 contract prices about 20 % in May, and TrendForce sees server DRAM +8-13 % QoQ in 3Q. Better pricing lifts average selling prices (ASPs) and helps absorb fab costs. trendforce.comtrendforce.com
🔄 NAND turning the corner: Top‑five makers cut wafer starts 10‑15 %; TrendForce now forecasts +10‑15 % wafer price rebound in 2Q, putting Micron’s lagging NAND unit on a path to break‑even. trendforce.comtrendforce.com
🏗️ Made‑in‑USA lift: A finalized $ 6.1 bn CHIPS Act grant plus a new $ 275 m Virginia award lower net cap‑ex. Micron has expanded its U.S. investment blueprint to ~$ 200 bn over the decade, adding political and customer goodwill.
⚠️ Policy overhangs:
Export curbs: December U.S. rules widened restrictions on HBM and fab tools, while Beijing urged local firms to “diversify” away from U.S. chips.
Tariff risk: Trump’s proposed 10 % baseline tariff could squeeze PC/handset demand; management says it will “pass costs through,” but buyers may delay orders.
Why AI/Semiconductor Investors Should Care: Micron has morphed from a commodities player into the HBM arms dealer of the AI era. If management converts sold‑out HBM capacity and firmer DRAM/NAND prices into record margins this quarter, it validates paying a cycle‑high multiple and signals upside for the entire AI memory supply chain. Miss the margin bar or soften FY 25 “record revenue” rhetoric, and the stock’s rich run could unwind fast. Either way, Wednesday’s print will set the tone for memory names and the broader semiconductor rally through summer earnings season.
Wolfspeed, Inc. (NYSE: WOLF)
🔻 Pre‑Packaged Lifeline, Shareholder Minefield
What The Chip: On June 23, 2025, Wolfspeed said it has signed a pre‑packaged Chapter 11 plan with lenders holding ≥ 97 % of secured notes, ≥ 67 % of convertibles, and top customer Renesas. The deal slashes ~70 % (≈ $4.6 B) of debt and lets the SiC‑chip maker seek court protection “in the near future,” aiming to exit by end‑Q3 CY 2025.
The Situation Explained:
💸 Debt Diet: $5.2 B of convertibles + $2 B Renesas wafer‑deposit convert into $500 M new senior notes and 95 % of post‑reorg equity; secured notes get $250 M cash pay‑down at 109.875 %.wolfspeed.com
🩺 Equity on Life Support: Current shareholders end up with just 3%–5% of the reorganized company, subject to further dilution from future equity grants.
🏦 Fresh Cash: A fully backed $275 M second‑lien convertible note provides near‑term liquidity; annual cash interest falls ~60 %.
🏭 Operations Continue: Wolfspeed will keep running its 200 mm Mohawk Valley fab and pay vendors in full while soliciting creditor votes and then filing.
🤝 Customer Lock‑In: Renesas’ equity swap secures its SiC wafer supply, boosting fab‑utilization once EV volumes recover.
🇺🇸 CHIPS Act Wildcard: Wolfspeed still awaits up to $750 M in U.S. subsidies for Mohawk Valley; delays previously stoked “going‑concern” warnings.
🚗 Sector Swoon: Auto SiC demand cooled in 2024‑25, hitting peers like Onsemi, underlining how capital‑intensive scale can backfire when EV ramps stall.
📉 Ticker Turbulence Ahead: Once the court petition is filed (likely before July 1), the NYSE will suspend WOLF; shares will migrate to OTC as WOLFQ until new equity listings post-exit.
Why AI/ Semiconductor Investors Should Care: Power‑device players bank on silicon‑carbide to electrify EV drivetrains, data‑center power shelves, and industrial robots. Wolfspeed’s wipe-out shows that technology leadership can’t outrun a busted balance sheet: with fabs costing $3B–$5B, missing EV demand forecasts or delayed subsidies quickly become existential. For bulls, the reorg removes crippling interest expense and locks in Renesas, giving the new Wolfspeed a cleaner shot at the next SiC up‑cycle. Bears will point to diluted equity, soft EV orders, and tariff‑driven policy uncertainty in 2025.
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Disclaimer: This article is intended for educational and informational purposes only and should not be construed as investment advice. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.
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[Paid Subscribers] Navitas Targets 800‑Volt AI Data Centers with GaN‑SiC Power Platform
Date of Event: June 11, 2025 – Rosenblatt’s 5th Annual Technology Summit – The Age of AI
Executive Summary
*Reminder: We do not talk about valuations, just an analysis of the earnings/conferences
Navitas Semiconductor (ticker: NVTS) used Rosenblatt’s “Age of AI” conference to outline how its gallium‑nitride (GaN) and silicon‑carbide (SiC) devices aim to rewire the power backbone of artificial‑intelligence (AI) data centers. Chief Executive Officer Gene Sheridan reminded investors that Navitas’ GaN chips already dominate fast‑charging adapters and have begun shipping into solar, electric‑vehicle (EV) and appliance markets.
Key numbers: the company’s shares are up over 100% year‑to‑date, and its newest 12 kW power‑supply reference design packs 10× the power of the silicon designs common only two years ago. Sheridan called AI data centers the firm’s “number‑one priority,” disclosing 40 active customer projects and collaboration with NVIDIA on an 800‑volt rack architecture. He also repeated Navitas’ goal of expanding its served market to “hundreds of millions, heading toward a billion dollars” as higher‑voltage GaN and SiC replace legacy silicon.
“We’ve gone from 1 kW to 12 kW per module in just 24 months,” Sheridan said. “Customers are now asking for a megawatt per rack—an exponential rise that only wide‑band‑gap semiconductors can meet.”
Growth Opportunities
Data‑center escalation. NVIDIA’s Blackwell graphics processors draw roughly 1 kW each, with the Rubin generation expected to exceed 2–3 kW. That pushes rack-level demand from approximately 10 kW in the pre-AI era to 100 kW today, and NVIDIA is championing 1 MW racks for 2027. Navitas’ GaN (ideal up to ~850 V) and SiC (rated to 6.5 kV, with 10 kV in R&D) together address every conversion step from the utility grid down to the one-volt GPU rail.