Nvidia (NVDA) stock has surged more than 60% since hitting a low in April, powered by explosive demand for AI chips and renewed strength in U.S. tech stocks. Riding this momentum, the company’s stock has touched record highs, lifting Nvidia back into the ranks of the world’s most valuable companies. Amid the rally, insiders have sold over $1 billion worth of shares in the past year, more than $500 million of that just in June, as they lock in gains from the AI boom.
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CEO Huang Leads the Wave
Nvidia CEO Jensen Huang resumed selling shares on June 20, marking his first sale since last September. On that day, he sold Nvidia stock valued at around $14.4 million. Back in March, he adopted a new 10b5-1 trading plan, which allows him to sell up to 6 million shares by the end of 2025.
These plans are often used by top company leaders to show investors that the sales are planned in advance and not based on inside news, helping avoid big swings in the stock price.
Other Insiders Benefit Too
Other top insiders at Nvidia have also taken advantage of the stock’s surge. Board member Mark Stevens sold shares worth about $288 million, while Tench Coxe offloaded around $143 million. Brooke Seawell, another longtime board member, sold shares valued at roughly $48 million this month. Ajay Puri, Nvidia’s executive vice-president and a company veteran, sold about $25 million worth of stock this week.
According to TipRanks’ Insider Trading Activity tool, NVDA stock currently has a Very Negative Insider Confidence Signal, based on Informative Sell transactions worth $438 million undertaken in the last three months.
It is important to keep an eye on the Informative trades of corporate insiders, given their knowledge of a company’s growth potential. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Should Investors Worry About the Insider Selling?
A large amount of insider selling can make some cautious. But in Nvidia’s case, most of the recent stock sales were planned ahead of time. These sales were set up through trading plans that fix the price and timing in advance, helping avoid concerns about unfair advantage.
Instead of showing problems within the company, the selling likely shows smart timing. Insiders are locking in gains after a huge rise in the stock price. With Nvidia still leading in AI chips and demand staying strong, investors have little reason to worry for now.
Many analysts still see strong upside in NVDA stock. For instance, recently, Top analyst Ananda Baruah from Loop Capital raised his price target on Nvidia from $175 to a Street-high of $250, pointing to stronger-than-expected demand across the AI space. He sees Nvidia leading what he calls a “Golden Wave” of generative AI growth, with demand growing much faster and bigger than most people expect.
Is NVDA a Good Buy Right Now?
On TipRanks, NVDA stock has a Strong Buy consensus rating based on 35 Buys, four Hold ratings, and one Sell rating. Also, the average Nvidia price target of $175.28 implies 11.11% upside potential from current levels.
