Nvidia CEO Sells Over $49M NVDA Shares This Week, What’s Going On?

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As a seasoned researcher with years of experience in tech and market trends, I find Jensen Huang’s recent stock sale actions intriguing. While it’s natural for CEOs to cash out some gains, the magnitude of his sales raises eyebrows, especially given Nvidia’s strong performance this year.

Jensen Huang, Nvidia’s CEO, sold shares worth $49 million of NVDA stock, drawing attention due to his recent sell-offs. His strategy aligns with a plan he outlined in March, allowing him to anticipate the broader market dip from last week. This week, NVDA stock has risen by 13%, currently trading at $104.74, as positive macroeconomic factors emerge.

Nvidia CEO Continues Stock Sale 

Jensen Huang recently sold 470,000 NVDA stock worth approximately $49 million from his holdings. Recent activities show Huang has sold over $500 million in shares in the last two months and $49 million this week.  In July, he sold $322.7 million of NVDA taking him above the stock sell-off. 

As a seasoned researcher with over two decades of experience in the tech industry, I have witnessed the rapid evolution and growth of artificial intelligence (AI) technology, and I must admit, the recent performance of the AI chip manufacturer has caught my attention. This year, it has managed to garner trader interest due to its impressive gains, even momentarily outperforming tech giants like Microsoft and Apple. However, I cannot help but feel a sense of concern when I see the CEO continuing to sell off his shares amidst this success.

According to a recent disclosure, the CEO intends to sell additional stocks this month. The Nvidia (NVDA) share ended Friday at $104.75, experiencing a minor decrease of 0.21%. This week, the stock surged by 13.8%, rebounding from its previous drop. However, over the past 30 days, the stock has dropped significantly by 22.36%.

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AI Fuels NVDA Projections 

In anticipation of Nvidia’s second-quarter financial results, some analysts predict an upward trend compared to last year. To clarify, while monthly figures have shown a decrease recently, Nvidia has surpassed expectations since Q2 2023 due to the growing influence of AI in discussions. According to Bloomberg, major clients like Meta, Amazon, Microsoft, and others are planning expansions in their AI infrastructure as a customer of Nvidia.

Despite the positive swings in Amazon and Intel’s stocks last week and their Q2 earnings, as well as recent U.S. employment figures, some investors have started to harbor a slight concern or uncertainty.

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2024-08-10 12:45