Nvidia insiders sell $700 million worth of shares amid AI chip demand surge

From Nasdaq: 2024-06-18 10:23:29

Nvidia insiders have sold shares worth over $700 million in 2024, capitalizing on the chipmaker’s 168% stock surge driven by AI chip demand. The heavy insider selling, including executives and directors, followed a strong earnings report and stock split announcement. Despite the lack of insider buying, sustained demand for Nvidia’s products remains positive.

The Nasdaq 100 index reached a record high fueled by Nvidia and Broadcom’s rally, with Nvidia being the third most valuable company globally at a market cap of $3.25 trillion. The absence of significant insider stock purchases since December 2020 raises cautious investor sentiment amid the AI and megacap stock rally.

The rally in AI and megacap stocks, particularly Nvidia, has pushed the Nasdaq 100 index to new heights, signaling an overbought condition. While a potential market pullback is anticipated, Nvidia’s robust demand for its products maintains its market position just behind tech giants Microsoft and Apple. Other tech news includes Apple’s Pay Later program shutdown and FTC’s lawsuit against Adobe.



Read more at Nasdaq: Record Insider Sales at Nvidia as AI Chip Demand Drives Stock to New Highs