Jensen Sold At The Top - Nvidia Stock Could Sink After Ominous Development

Nvidia Corp NVDA has been the undisputed champion of the AI era, soaring 80% since April 2025 and pushing its market cap to an eye-watering $3.8 trillion.

But, just when investors were popping the champagne bottles, two ominous signals emerged – one from the CEO, the other from the chart.

Jensen's Big Exit

In late June and early July, Nvidia insiders unloaded a staggering $500 million worth of shares, with $35 million coming from CEO Jensen Huang himself. Huang sold 217,910 shares at or near all-time highs, ranging from $152 to $158, as per Form 4 filings with the SEC.

Huang has signaled plans to sell up to $900 million more this year, per SEC filings. That brings insider sales to over $1 billion in the past 12 months.

While some argue it's just profit-taking after a meteoric run, others see it as a well-timed exit, especially considering what's showing up in the technicals.

Read Also: Here’s How Much You Would Have Made Owning NVIDIA Stock In The Last 20 Years

Déjà Vu In The RSI?

Here's where it gets interesting. Nvidia's 14-day Relative Strength Index (RSI) just hit 77 this week – its highest level since June 2024, right before a brutal 32% correction.

Source: TradingView

Technicians consider any RSI above 70 to be overbought. At 77, the warning lights are blinking bright red.

The parallels between the two ominous developments are hard to ignore: insiders selling big, sentiment euphoric and a technical indicator that last preceded a sharp drop flashing again.

Chart created using Benzinga Pro

Is A Correction Looming?

To be fair, Nvidia remains in a bullish uptrend. It's trading well above its 20-day, 50-day and 200-day moving averages. The MACD (Moving Average Convergence/Divergence) indicator remains positive. But history suggests caution is warranted when RSI stretches this far.

Investors riding this wave might want to ask themselves: if Jensen's selling at the top, should they be trimming too?

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