Nvidia Corp’s (NASDAQ: NVDA) CEO, Jensen Huang, sold over $42 million worth of shares from September 1 to September 6 as the stock failed to push through the $500 level. Huang exercised his stock options with a price of $4 during the same period and sold them within the range of $466.13 to $497.17 shortly after.
Jesse Cohen, a global market analyst, says insider selling at the company usually precedes a selloff in the stock. Is that what NVDA holders should expect next?
Nvidia stock technical analysis
Nvidia’s stock chart shows the potential for a larger pullback after the price broke out of the ascending channel pattern.
This puts two support levels in place: $450 and $400. In case the $400 level fails in the coming months, $300 is the next level to watch.
Analysts are still bullish
Within the past 10 days, three out of four analysts from the investment firms Goldman Sachs, Citi and Bernstein have maintained or reiterated their ‘Buy’ rating with a price target north of $600 for the next 12 months.
This makes any pullback to the $400 price level or below a good accumulation spot if you’re bullish on the Nvidia stock.
The bullishness is no doubt the result of Nvidia doing the right things this year. For one, China’s largest companies Baidu, Tencent, and Alibaba ordered chips worth $5 billion for deliveries in 2024.
Meanwhile, Saudi Arabia and the United Arab Emirates have also placed orders for 3,000 chips worth $40,000 each.
Nivida is doing great financially as well, being on track to double its quarterly revenue. Despite that, company insiders haven’t purchased a single share in the past 12 months.
In June and August, the company director Mark Stevens sold $75 million worth of Nvidia shares.
Not all investors are convinced that stock can go higher, though. Investor Rob Arnott claims this is a bubble, and it’s likely to pop soon. He says:
“Nvidia may be riding a revolution in computer science, but the stock is “a textbook story of a Big Market Delusion.”
Regardless, Nvidia stock has totally dominated this year as it returned 223% to investors year-to-date, dwarfing S&P 500’s 16% return during the same period.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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