While numerous analysts argue that the recent decline in Nvidia (NASDAQ: NVDA) stock is exaggerated, the CEO of the artificial intelligence (AI) chip manufacturing behemoth has continued to liquidate his company’s shares, selling over $53 million in NVDA stock last week.
Specifically, Jensen Huang disposed of 240,000 Nvidia shares valued at $27,574,824 on September 3, followed by another 240,000 shares worth $25,805,496 on September 5, according to the data shared by the market analytics platform Barchart in a post on X dated September 10.
It is important to highlight that the Nvidia CEO has now sold nearly 5.5 million NVDA shares since mid-June of this year, amassing over $680 million from the recent sales, following a Rule 10b5-1 trading plan started in March, under which Huang plans to offload up to 6 million shares before March 31, 2025.
In the meantime, the technology company experienced a loss of approximately $400 billion in market capitalization last week, impacting other major players in the stock market, marking what the Bespoke Investment Group recognized as the worst beginning to September since 1953. Nevertheless, analysts from Goldman Sachs (NYSE: GS) hold a favorable perspective.
Indeed, the principal analyst, Toshiya Hari, has maintained a ‘buy’ rating on NVDA stock, recently expressing his team’s belief that the recent sell-off is unjustified, and noted to Yahoo Finance at the Goldman Sachs 2024 Communacopia and Technology Conference that:
“The recent results haven’t been outstanding, but we continue to have a positive outlook on the stock. (…) Initially, the demand for accelerated computing is exceedingly strong. We dedicate substantial attention to hyperscalers — the Amazons, the Googles, and the Microsofts of the world — however, there’s an apparent growth in demand even within enterprises and among governmental entities.”
Nvidia stock price history
As per the latest information, Nvidia’s closing stock price was $106.47, reflecting an 8.23% decrease over the week and an overall drop of 2.34% for the past month, while also indicating a 121.03% increase year-to-date (YTD) and gaining 1.73% in pre-market trading, according to the latest data.
So, what is leading to the decrease of Nvidia’s stock today and in recent weeks? Notably, Nvidia’s challenges escalated with a recent report revealing that the company had been subpoenaed by the United States Department of Justice (DoJ) as part of an antitrust investigation, in light of increasing competition from the electric vehicle (EV) sector.
On the other hand, the semiconductor company expects to generate over $3 billion in revenue for fiscal Q4 ending January 2025, following the launch of its Blackwell products later this year, combined with strong forecasts for the October quarter and favorable results from the previous period, signaling a potential strong rebound.
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