In light of worries that the valuation of Nvidia (NASDAQ: NVDA) stock has peaked and may not rise further in the near future, the artificial intelligence (AI) semiconductor powerhouse’s CEO Jensen Huang has persistently sold off his company’s shares, exceeding $711 million in worth since June.
In fact, Huang has divested an additional $25 million in Nvidia shares during a recent trading session, pushing last week’s total to over $78 million worth of NVDA stocks sold, according to insights provided by market analytics platform Barchart in an X post dated September 12.
Specifically, the latest transaction, where Huang sold 240,000 NVDA shares for $25,044,864 (at an average price of $104.35), occurred on September 9 and reduced his ownership of Nvidia shares to 861.5 million, which constitutes 3.512% of the complete sum.
Notably, the Nvidia CEO previously unloaded 240,000 Nvidia shares on September 3, followed by another 240,000 on September 5, totaling around 5.7 million NVDA shares divested since mid-June under a Rule 10b5-1 plan, under which he aims to sell up to 6 million NVDA shares by March 31, 2025.
Nvidia stock price history
At the time of this report, Nvidia stock was priced at $119.34, showing a 2.77% rise for the day, a 15.05% increase over the past week, and a 3.19% gain in the last month, with its year-to-date (YTD) growth reaching 148.80%, based on the latest chart data acquired on September 12.
Recently, prominent market trader TradingShot noted a potential downturn in the form of a three-month pullback for Nvidia, stating, “the first it faced on a 1M basis since September – October 2023,” which was merely “a mid-Bull consolidation phase within the broader context of a Channel Up pattern that initiated nearly 10 years ago.”
According to the analyst, the Nvidia stock price is currently “retracting from the Channel’s apex (Higher Highs trend-line), and if the 1M MACD creates a Bearish Cross, we should prepare for a cyclical adjustment within the pattern, which in the past two occurrences (…) it corrected back to the 1M MA50 (blue trend-line) to establish a bottom.”
As TradingShot concluded, Nvidia established the November 2021 peak “precisely at the moment of the 1M MACD Bearish Cross,” while it achieved the October 2018 peak ten months later, suggesting that “we should closely monitor the extent of the adjustment” in October or November this year if this is indeed a three-year cycle.
Meanwhile, Nvidia experienced a decrease of roughly $400 billion in market capitalization last week, dragging down numerous other stock market entities with it, in what the Bespoke Investment Group termed the worst September commencement since 1953, despite Goldman Sachs (NYSE: GS) and other analysts maintaining their optimistic projections.
What’s next for Nvidia stock?
After assessing the situation, Nvidia’s CEO selling his shares doesn’t necessarily imply a loss of faith in his company’s stock, although it may seem that way given the technical assessments and recent setbacks, including the U.S. Department of Justice (DoJ) subpoena and other challenges.
Nonetheless, the semiconductor behemoth anticipates generating over $3 billion in revenue in fiscal Q4 following the rollout of its Blackwell products later this year, which, coupled with strong projections for the October quarter and favorable results from the previous quarter, signals the possibility of substantial recovery. Thus, Huang might simply be seizing the chance to benefit from some of the company’s recent successes.
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