Zinger Key Points
- Nvidia insiders sell $1.8 billion in shares, signaling possible strategic shifts.
- Nvidia stock up 179% in the past year despite recent insider selloff.
Throughout 2024, Nvidia Corp. NVDA insiders have been actively selling shares, tallying transactions over $1.8 billion, with expectations of more to come, Bloomberg reports.
The most notable of these insiders, CEO Jensen Huang, executed sales of approximately $713 million through a predetermined trading arrangement known as a 10b5-1 plan. Director Mark Stevens' trust has filed to sell 3 million additional shares in addition to the 1.6 million it sold in 2024.
This massive wave of stock sales occurs amid market anxieties surrounding Nvidia's delayed Blackwell chips and ongoing investments in AI technology.
Despite these concerns, insiders maintain a robust holding, illustrating a potentially strategic timing rather than a loss of confidence. Still, Nvidia stock is up 179% in the last 12 months, and its outstanding shares stand at 23.5 billion.
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Recently, Nvidia Corp NVDA chief Jensen Huang dispelled Wall Street concerns by acknowledging massive demand for Nvidia's Blackwell GPU, whose production and progress are going as planned.
Meanwhile, Nvidia is applying spatial AI in autonomous driving and warehouse automation, using robots to simulate real-world scenarios.
Nvidia's recent launches include open-source AI models and new Unreal Engine 5 plugins enabling AI-powered MetaHuman characters, catering to AI-driven gaming.
Wedbush analyst Dan Ives projected Nvidia as a beneficiary of the trillion-dollar AI spending by the U.S. hyperscalars.
Investors can gain exposure to Nvidia through SPDR S&P 500 SPY and iShares Core S&P 500 ETF IVV.
Nvidia Stock Prediction For 2024
Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.
Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at NVIDIA, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For NVIDIA, the 200-day moving average sits at $95.76, according to Benzinga Pro, which is below the current price of $122.85. For more on charts and trend lines, see a description here.
Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.
Price Action: NVDA stock is up 0.39% at $123.33 premarket at the last check Friday.
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