Nvidia Insiders File Paperwork To Dump 370,000 Shares 

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by Tyler Durden
Monday, Dec 04, 2023 - 07:00 PM

Although Nvidia reported 'blowout' third-quarter earnings, an ominous sign that a peak in share price could be imminent is a report from Bloomberg that reveals corporate insiders are planning to sell the most stock in terms of dollar value in years. 

The artificial intelligence bubble has fueled a 349% rally in Nvidia shares from $112 per share in October 2022 to over $500 by mid-November. As of Monday afternoon, Nvidia shares are down 10% off the peak, trading around $454. Insiders know better than anyone else about what the future holds for share prices.

New data from Washington Service shows insiders in November sold or filed paperwork to sell 370,000 shares worth about $180 million - the most in dollar amount terms in at least six years. 

Meanwhile, in Nvidia's earnings call, executives warned of a "significant" slowdown in China sales and gave fourth-quarter guidance that was also above consensus and, at best, matched the top end of the whisper range, which may have disappointed some investors as it shows that growth limits might have been hit. 

With that being said, is the AI bubble about to follow the same fate as the Covid/crypto implosion?

Google web searches of "ChatGPT" continue to wane after peaking in late spring. 

The number of times "ChatGPT" has been featured in news headlines also continues to slide. 

We have already pointed out that the AI bubble has likely peaked via an analysis by Deutsche Bank last month titled "Popping The AI Bubble: Companies That Drone On About AI In Earnings Calls See Their Shares Underperform."

So, what insights do Nvidia executives and directors have about future growth that the market does not have?