NVIDIA Insiders Offload $1.6 Billion in Stock, Making No Purchases One Year Before Today’s Earnings Report

The following content is not intended as financial advice. The author does not hold any positions in the stocks referenced.

Anticipation for NVIDIA’s Earnings Report Amidst Significant Insider Sales

As NVIDIA prepares to release its crucial quarterly earnings report today, recent data reveals that insiders have sold an astonishing $1.6 billion in shares over the past year. The excitement around NVIDIA’s stock, attributed to its pivotal role in the artificial intelligence (AI) boom, led to the company being the most valuable globally at several points last month, before the significant selloff related to DeepSeek. However, in the aftermath, investor caution has hampered any recovery in NVIDIA’s share price, as many are waiting to assess product demand before making further investments.

Year-to-Date Stock Performance: A Downward Trend

Since the launch of ChatGPT by OpenAI, NVIDIA’s stock has experienced extraordinary growth, becoming one of Wall Street’s highlight performers. Since November 2022, shares have surged by an impressive 678%, resulting in substantial wealth for many employees within the company. CEO and founder Jensen Huang, who has a 3.5% ownership stake, stands out as the richest employee, ranking as the 13th wealthiest person in the world with a net worth of around $113 billion.

As of now, NVIDIA boasts a market capitalization of $3.1 trillion, making it the second most valuable company globally, surpassed only by Apple Inc., which commands a market cap of $4.7 trillion—approximately $600 billion more than NVIDIA. In January, NVIDIA led the market valuation rankings before the DeepSeek selloff disrupted its upward trajectory.

Impact of DeepSeek Selloff

During the DeepSeek incident, NVIDIA’s shares plummeted by 17% in a single day. Although they have since rebounded by 6.9% since that low point, the stock has yet to reclaim previous highs. Investors are now looking intently at the upcoming earnings report, which is expected to provide insights into the demand for GPUs and the availability of their upcoming Blackwell products. Current investor sentiment suggests that shipments of Blackwell may be postponed until the latter half of the year, creating further uncertainty. Consequently, NVIDIA’s shares have seen a decline of 9.62% as they approach the earnings announcement.

Insider Sales Raise Eyebrows

Interestingly, the wave of insider selling leading up to earnings has raised concerns. Data shared on social media platform X indicates that NVIDIA insiders have sold stocks amounting to $1.6 billion without any recorded purchases. Key figures, including CEO Jensen Huang, sold $8.62 million worth of shares in mid-December when the stock was valued at $135. Chief Financial Officer Collette Kress also sold a substantial $18.62 million worth of shares on the same day, while Ajay Puri, the lead of field operations, offloaded over $40 million in shares.

Analyst Outlook: A Silver Lining?

Even amid these challenges, investment advisory firm Evercore ISI views NVIDIA’s current stock price as attractive. In a recent investment note, they maintained a price target of $190 and an Overweight rating, suggesting that with a forward price-to-earnings multiple of 30, NVIDIA’s shares represent the most affordable option within its AI coverage universe.

BREAKING: In the last year, Nvidia, $NVDA, insiders have only sold.

They have sold up to $1, 602, 674, 927.72 in stock.

There have been zero buys.pic.twitter.com/W9wLfEAiu0

— unusual_whales (@unusual_whales) February 26, 2025