Given concerns that the valuation of Nvidia (NASDAQ: NVDA) shares may have reached its zenith and might not elevate further shortly, the artificial intelligence (AI) semiconductor titan’s leader Jensen Huang has consistently liquidated his company’s holdings, surpassing $711 million in value since June.
Indeed, Huang has offloaded an additional $25 million in Nvidia shares during a recent trading day, bringing last week’s overall total to more than $78 million in NVDA stocks sold, as per information released by market analysis platform Barchart in an X post dated September 12.
In particular, the most recent transaction, in which Huang divested 240,000 NVDA shares for $25,044,864 (at an average price of $104.35), took place on September 9 and decreased his stake in Nvidia shares to 861.5 million, accounting for 3.512% of the full aggregate.
Interestingly, the Nvidia CEO had previously sold off 240,000 Nvidia shares on September 3, followed by another 240,000 on September 5, resulting in approximately 5.7 million NVDA shares sold since mid-June as part of a Rule 10b5-1 plan, under which he intends to divest up to 6 million NVDA shares by March 31, 2025.
Nvidia stock price history
At the moment of this report, Nvidia shares were valued at $119.34, reflecting a 2.77% increase for the day, a 15.05% rise over the previous week, and a 3.19% gain within the past month, with its year-to-date (YTD) growth hitting 148.80%, based on the latest chart data received on September 12.
Recently, prominent market analyst TradingShot pointed out a potential downturn in the shape of a three-month decline for Nvidia, asserting, “the first it encountered 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 commenced nearly 10 years ago.”
According to the analyst, the Nvidia stock price is currently “retracing from the Channel’s peak (Higher Highs trend-line), and if the 1M MACD forms a Bearish Cross, we should prepare for a cyclical adjustment within the pattern, which in the past two instances (…) it reverted back to the 1M MA50 (blue trend-line) to form 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, indicating that “we should keep a close watch on the magnitude of the adjustment” in October or November this year if this is indeed a three-year cycle.
Meanwhile, Nvidia saw a decline of approximately $400 billion in market capitalization last week, negatively affecting many other stock market entities alongside it, in what the Bespoke Investment Group termed the worst September onset since 1953, despite Goldman Sachs (NYSE: GS) and other analysts retaining their upbeat forecasts.
What’s next for Nvidia stock?
After evaluating the situation, Nvidia’s CEO liquidating his shares does not necessarily signify a lack of confidence in his company’s stock, although it may appear that way given the technical evaluations and recent difficulties, including the U.S. Department of Justice (DoJ) subpoena and other challenges.
Nevertheless, the semiconductor giant expects to generate over $3 billion in revenue in fiscal Q4 following the introduction of its Blackwell products later this year, which, combined with strong expectations for the October quarter and positive outcomes from the prior quarter, points toward a potential significant recovery. Therefore, Huang might simply be capitalizing on the opportunity to benefit from some of the company’s recent triumphs.
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