From Nasdaq: 2024-07-26 07:30:00

Nvidia’s stock (NASDAQ: NVDA) has surged a staggering 800% in less than two years, making it a standout stock. However, recent sales by billionaires, including company insiders like CEO Jensen Huang and board member Mark Stevens, have raised concerns among investors. They sold a combined $731 million in Nvidia stock this year.

While the insider sales are significant, they represent only small portions of Huang and Stevens’ massive holdings. Investment decisions like portfolio diversification or personal expenses can drive insider selling. But Nvidia’s stock valuation is at a precarious level, trading at a P/S ratio nearly 500% higher than its lifetime average.

Compared to other tech stocks like Microsoft, Nvidia’s high valuation poses risks for investors. While Nvidia’s revenue growth could support its valuation, caution is advised as a pull-back could occur if sales fall short of expectations. The Motley Fool Stock Advisor identified 10 best stocks for investors, excluding Nvidia. Their recommendations have historically outperformed the S&P 500.



Read more at Nasdaq: Billionaires Can’t Stop Selling Nvidia. But There’s Something Else That Investors Need to Know.