NVIDIA stock sell-off imminent as Nvidia CEO dumps $42 million in shares?
The stock of NVIDIA is facing a downturn because NVIDIA’s CEO, Jensen Huang, sold shares worth more than $42 million between September 1 and September 6.
NVIDIA stock: During that same period, he exercised his stock options and sold them immediately at prices between $466.13 and $497.17, as the stock failed to break the $500 mark.
NVIDIA stock: According to market analysts like Jesse Cohen, internal trading within a company usually happens before a stock downturn. Should NVIDIA shareholders take this as a signal for the next step?
In terms of technical analysis for NVIDIA’s stock, the chart indicates the potential for a significant recovery after breaking out of a rising channel pattern. It establishes support at two levels: $450 and $400. If the price fails to hold above $400 in the coming months, the next level to watch would be $300.
NVIDIA stock: Three out of four analysts from financial institutions, namely Goldman Sachs, Citigroup, and Bernstein, have maintained their ‘buy’ recommendation with price targets for the coming year above $600 in the past ten days.
If you’re optimistic about NVIDIA’s stock, a retreat below $400 or lower presents an excellent opportunity for accumulation.
The fact that NVIDIA has been actively working is undoubtedly a reason for its recent momentum. To start, the three biggest businesses in China, Baidu, Tencent, and Alibaba, have ordered chips worth $5 billion for delivery in 2024.
Saudi Arabia and the United Arab Emirates have both ordered 3,000 chips at $40,000 each during this period.
NVIDIA’s financial position is excellent, and it’s on track to triple its quarterly sales. Despite this, the company’s internal sources haven’t bought a single share in the past 12 months.
Company director Mark Stevens sold NVIDIA shares worth $75 million between June and August. However, not all investors are convinced that the stock will continue to rise. According to investor Rob Arnott, it’s a bubble that’s likely to burst soon. He claims:
“However, NVIDIA’s stock has been on a tear this year, outperforming the S&P 500 by 16% with a 223% return for investors, so far”
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