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Nvidia’s AI Dominance and Insider Trading Concerns
Nvidia (NASDAQ: NVDA) has seen its market value increase by approximately $3.8 trillion since the beginning of 2023, with shares rising 1,070%, boosted by its leading role in the artificial intelligence (AI) sector, estimated to be a $15.7 trillion opportunity by 2030. The company benefits from ongoing GPU scarcity, maintaining a compute edge via its advanced graphics processing units (GPUs), such as the Hopper and Blackwell chips.
However, concerns have arisen over Nvidia’s insider trading activity. Over the past five years, insiders have sold a net of $4.7 billion worth of stock, with the last purchase occurring in December 2020. While insiders often sell shares for various reasons, the almost complete absence of buying signals caution against potential overvaluation, as Nvidia’s price-to-sales ratio exceeds 25, raising the possibility of a market correction.
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