What Happened: Nvidia insiders sold over $1 billion of stock this past year, with $500 million sold just this month as shares hit record highs, driven by the AI boom.
Key Details:
CEO Jensen Huang sold shares for the first time since September, despite Nvidia’s rally of 60% from April lows.
Insider sales spiked even as analysts projected Nvidia entering a “Golden Wave” of AI-driven growth.
Historically, large insider sales near record highs have sometimes preceded short-term pullbacks, but do not necessarily signal long-term weakness.
What to Watch:
Nvidia’s next earnings report: Watch for any slowdown in data center demand, a key driver of recent growth.
AI sector sentiment: Is the hype continuing, or are investors rotating into other tech sectors?
Insider selling patterns vs. institutional buying: Divergence here can often hint at near-term volatility.
Money Master Take: While Nvidia’s fundamentals remain strong, a flood of insider selling is often a sign to watch carefully. Stay disciplined: avoid chasing at highs, consider hedging gains, and watch earnings momentum closely before adding more exposure.
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