Welp, it looks like Nvidia investors finally have something to celebrate after the chip maker's CEO and co-founder, Jensen Huang, wrapped up his monster-sized stock sale. ICYMI, the billionaire CEO offloaded over $700M worth of Nvidia shares in the last three months, and now that his preplanned stock dump is finally over, Nvidia’s stock is back on the rise.

Cue the relief rally.

(Source: Giphy) 

In short, Nvidia shares popped as much as 4.8% Tuesday before settling with a respectable 4% gain, closing at $121.88. Not bad for a stock that’s been feeling a little hungover lately, thanks to Huang’s massive liquidation of six million shares. Investors had been sweating that Huang’s selloff was dragging the stock lower, but with the selloff complete, the stock is free to do what it does best—climb.

(Source: CNBC) 

Besides, it wasn’t like Huang was secretly dumping shares. The whole thing was part of a preplanned 10b5-1 trading arrangement, so nobody’s screaming “insider trading” here.

However, this massive piggy bank refill has still raised eyebrows as to what in the actual hell is going on? And for good reason too. But while Nvidia isn’t saying it, corporate bigwigs like Huang tend to sell stock for the usual suspects: estate planning, diversifying their portfolios, or —gasp —paying taxes on their obscene stock-based income. For context, Huang still owns a cool 3.8% of Nvidia, which, considering the company’s ludicrous market cap, is worth tens of billions. So the guy is not exactly strapped for cash…

(Source: X) 

Especially considering, fun fact:  Huang’s annual compensation package through stock awards makes your salary look like couch change. The guy racks up over $1 billion a year, easily. And this isn’t his first rodeo—he set up a similar stock sale plan back in 2019, cashing out a casual $200M. Again, pocket change, amirite?

(Source: Giphy) 

Yet, despite Huang’s stock sale, Nvidia is still surfing the AI boom like it invented it. Nvidia’s chips are basically the engine behind everything from ChatGPT to those deep fake videos that haunt your social media feed. And with AI spending ballooning faster than the friggin cost of eggs, demand for Nvidia’s GPUs is set to climb to the equivalent of 3 million of their next-generation GB200 chips in 2026, from 1.5 million of its current H100 units in 2023. Aka, that’s a whole lotta chips.

Keep in mind, this is also following the fact that Nvidia’s stock has already skyrocketed over 158% this year, thanks to the AI frenzy sweeping the globe - cementing a seismic $3.05 trillion market.

(Source: Reuters) 

But, but, but… even still, not everyone’s sipping the AI Kool-Aid. Some analysts think Huang’s massive stock sale, combined with hedge funds taking profits and Nvidia’s nosebleed valuation, might put a damper on the stock’s momentum. Especially since rivals like AMD have been lurking in the background, waiting for their shot at the AI throne (Have you seen what they’ve done to Intel? Whadda travesty). 

(Source: Yahoo Tech) 

Still though, with demand for AI chips showing no signs of slowing down, Nvidia’s got plenty of gas left in the tank. If you’re betting against Jensen Huang and his silicon empire, well… best of luck to ya buddy ol’ pal.

In the end, Nvidia is still the OG of AI with its wild price swings falling in line with normal volatility for high growth stocks (analysts words, not mine). Meaning, now that Jensen Huang has got his pockets full… It's time to pump that stock price up even more so he can cash out next quarter. Ha! If only it were that simple.

(Source: Giphy) 

TL;DR: Jensen Huang is done selling stock, Nvidia’s back on the rise, and AI is still the most exciting thing since sliced bread. What’s not to love?

In the meantime, keep an eye on Nvidia and as always, stay safe and stay frosty, friends! Until next time…

P.S. Last Thursday, we dropped an alert exclusively for our premium members, and by market close, that stock soared 140.45%. If you missed it, well, don’t worry - you’ve got one last shot at redemption. Our next alert is dropping TODAY at 12 PM ET, and trust me, you don’t want to be the one sitting on the sidelines again. Click here to become a premium member and get in before the next stock takes off!

Stocks.News holds positions in Intel as mentioned in the article.