While several analysts contend that the recent downturn in Nvidia (NASDAQ: NVDA) stock is overblown, the CEO of the artificial intelligence (AI) chip manufacturing giant has persisted in unloading his firm’s shares, offloading more than $53 million in NVDA stock last week.
In particular, Jensen Huang sold 240,000 shares of Nvidia valued at $27,574,824 on September 3, followed by another 240,000 shares worth $25,805,496 on September 5, based on the information provided by the market analytics platform Barchart in an X post dated September 10.
It’s worth noting that the Nvidia CEO has now disposed of nearly 5.5 million NVDA shares since mid-June this year, accumulating over $680 million from the latest transactions, pursuant to a Rule 10b5-1 trading scheme initiated in March, under which Huang intends to sell up to 6 million shares before March 31, 2025.
In the meantime, the tech firm lost approximately $400 billion in market capitalization last week, dragging down other significant participants in the stock market, marking what the Bespoke Investment Group identified as the worst start to September since 1953. Nonetheless, analysts from Goldman Sachs (NYSE: GS) maintain a positive outlook.
Indeed, the lead analyst, Toshiya Hari, has sustained a ‘buy’ rating on NVDA stock, recently articulating his team’s belief that the recent sell-off is unwarranted, and remarked to Yahoo Finance at the Goldman Sachs 2024 Communacopia and Technology Conference that:
“The recent performance hasn’t been exceptional, but we continue to hold a favorable view of the stock. (…) Initially, the demand for accelerated computing remains incredibly strong. We spend considerable time focusing on hyperscalers — the Amazons, the Googles, and the Microsofts of the world — however, there’s a noticeable expansion in demand even within the enterprise and among sovereign states.”
Nvidia stock price history
As of the latest update, Nvidia’s closing stock price stood at $106.47, showing an 8.23% decline over the week and a total loss of 2.34% for the past month, while marking a 121.03% increase year-to-date (YTD) and gaining 1.73% in pre-market trading, according to the most recent data.
So, what is causing Nvidia’s stock to decline today and in recent weeks? Notably, Nvidia’s difficulties peaked with a recent report indicating that the company had been subpoenaed by the United States Department of Justice (DoJ) as part of an antitrust inquiry, amidst increasing competition from the electric vehicle (EV) industry.
Conversely, the semiconductor firm anticipates generating over $3 billion in revenue for fiscal Q4 ending January 2025 following the introduction of its Blackwell products later this year, combined with strong projections for the October quarter and positive outcomes from the previous period, indicating a potential robust recovery.
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