The ai chip dominator, known as the "most important stock on the planet" by Goldman Sachs,$NVIDIA (NVDA.US)$As Nvidia's stock price continues to reach historic highs, the pressure on the company's internal executives to sell their shares has been increasing. Statistics show that internal Nvidia personnel have sold more than $700 million worth of stocks this year. Despite the heavy pressure for insider selling after the May earnings report, Nvidia's stock price has continued to rise on the basis of record high levels, and the "long bull" trend of Nvidia's stock price may not end anytime soon due to the explosive demand for the company's ai chips worldwide.

According to statistics compiled by Washington Service, Nvidia's executives and directors have so far sold approximately 770,000 Nvidia shares worth more than $700 million, not including the impact of the June 10th stock split. This is the largest sell-off since the first six months of 2023 when around 848,000 shares were sold. Given that the stock has risen an astonishing 164% since 2024, the value of stocks sold this year by internal sources is unprecedented. The worldwide competition waged by businesses to raise the overall computing power of their AI systems - AI computing is crucial to driving the popularized generative AI tools such as Chat GPT - has significantly promoted the demand for data center servers and AI accelerator chips (that is, AI chips represented by Nvidia AI GPU), and Nvidia undoubtedly dominates this segmented market for server AI chips, having a market share of up to 90%.

Nvidia, which has been dubbed the king of AI chips and given the title "the most important stock on the planet" by Goldman Sachs, has seen a continuous rise in its share price. However, the pressure on insiders to sell off large amounts of stock is increasing. Statistics show that Nvidia insiders have sold stocks worth more than $700 million this year. Despite the recent sell-off pressure after releasing an unprecedented earnings report in May, the demand for the company's AI chips among global enterprise clients has continued to explode, driving Nvidia's stock price to new historic highs.

In late May, Nvidia, the king of AI chips, announced another unprecedented financial report that stunned global investors, dispelling concerns about the slowdown in spending by AI-related businesses. Nvidia has once again single-handedly strengthened tech stock investors' "AI faith," driving the recent continuous rise in US tech stocks, as well as triggering a new round of crazy upward trends in Nvidia's stock price.

Nvidia's total revenue in Q1 increased by 262% year-on-year to $26 billion, setting an all-time high. Its total revenue year-on-year growth rate has exceeded 200% for three consecutive quarters. With strong demand for the H100/H200 GPU, Nvidia's Q1 data center revenue increased by 427% year-on-year to $22.6 billion, a historic high.

An "insider sell-off storm" is sweeping through Nvidia.

Mark Lehmann, CEO of Citizens JMP Securities, said that although the large-scale insider sell-offs are worth noting, considering that part of the executives' compensation is in the form of stocks, and there doesn't seem to be any sign of a slowdown in global demand for the company's high-performance AI GPU products, this may not necessarily cause market panic.

"Whenever you see this kind of wealth effect and this kind of market capitalization being created, I'm always looking for who's walking out the door, and I don't see any massive exodus of executives who got us here," Lehmann said in an interview. "And that would be a concern."

This chip giant is currently the third most valuable listed company in the world, with a market capitalization of about $32.2 trillion, just behind US tech giants Microsoft (MSFT.US) and Apple (AAPL.US), with a very small gap between the three. Recently, the total market value of Apple and Microsoft has alternated between the two largest in the world, taking turns enjoying the throne of "the world's most valuable listed company."

Statistics show that more than one-third of Nvidia's internal sources chose to sell stocks after Nvidia announced another unprecedented financial report on May 22, which also promised a stock split to come. These positive factors led to another crazy surge in this company's stock price. The largest proportion of sales comes from Mark Stevens and Tanchi Cox, two Nvidia directors.

On Monday Eastern Time, Jensen Huang, CEO of Nvidia, who is known as "Father of AI," reported that he shed about $31 million of shares in accordance with a previously arranged trading plan. A representative from Nvidia declined to comment.

Although there are many sellers among insiders, there has been a lack of buying power from insiders. According to statistics compiled by Washington Service, Nvidia has not had any insiders purchase stock since CFO Colette Kress bought a large number of shares in December 2020, except for exercising important options.

With Nvidia executives and directors actively reducing their holdings, technology stocks related to AI are showing signs of overheating. On Monday, the stock prices of major tech giants including Nvidia, Microsoft, and Google, as well as EtherNet switch chip and ASIC chip leader Broadcom (AVGO.US), continued to rise, pushing the Nasdaq 100 index to a new all-time high.

However, the 14-day relative strength index (RSI) covering the Nasdaq 100 index of many popular tech stocks is currently at the "highest overbought level" since 2018, indicating that the index may experience a sharp correction at any time.

From a long-term perspective, the rally of the "world's most important stock" may be far from over.

Beth Kindig, a technology industry analyst from the well-known investment institution I/O Fund, recently released a research report stating that Nvidia's stock price is expected to soar by about 258% from current levels by 2030, and its market value is expected to reach $10 trillion (Nvidia's current market value is about $297 billion). This is mainly because Nvidia's CUDA+AI GPU ecosystem brings an incredibly strong moat, and the next generation of AI GPU based on the Blackwell architecture is expected to contribute greatly to revenue.

Nvidia has been deeply engaged in the global high-performance computing field for many years, especially its CUDA computing platform, which has been popularized all over the world. It can be said to be the preferred software and hardware cooperative system in high-performance computing fields such as AI training/inference. The CUDA computing platform is a parallel computing acceleration platform and programming assistance software developed exclusively by Nvidia, allowing software developers and software engineers to use Nvidia GPUs to accelerate parallel general computing (only supports Nvidia GPUs and cannot be compatible with mainstream GPUs such as AMD and Intel).

CUDA can be said to be the platform that generating AI applications like ChatGPT extremely depend on, and its importance is equally important as the hardware system. It is crucial for the development and deployment of large AI models. With the high technical maturity, absolute advantages of performance optimization, and extensive ecosystem support, CUDA has become the most commonly used and widely popular collaborative platform in AI research and commercial deployment.

Nvidia's hottest AI chip, the H100/H200 GPU accelerator, is based on Nvidia's breakthrough Hopper GPU architecture, providing much more powerful computing capabilities than the previous generation, especially in floating-point operations, tensor core performance, and AI-specific acceleration. Even heavier, the AI GPU based on the Blackwell architecture has far superior performance than the Hopper architecture. Among them, the inference performance of the GB200 on the GPT-3 LLM benchmark with 175 billion parameters is 7 times that of the H100 system, and it provides training speed 4 times faster than H100 system.

Regarding when the Blackwell architecture AI GPU released in March will be put into various data centers, Nvidia CEO Jensen Huang said that the brand-new Blackwell architecture AI GPU product will be shipped in the second quarter of this year, increase production in the third quarter, and officially put into data centers in the fourth quarter, and it is expected that the "Blackwell architecture chip revenue will see significant growth" this year. In the Nvidia Blackwell architecture AI GPU press release in March, Tesla CEO Musk publicly shouted that Nvidia's AI hardware is "the best AI hardware."

Analyst Jin Di predicts that by the end of Nvidia's fiscal year 2026, revenue from the Blackwell architecture AI GPU will significantly exceed that of its predecessor H100 architecture, with Blackwell architecture expected to drive Nvidia's datacenter revenue to as high as $200 billion.

The voice of bullish Nvidia stock prices is hard to stop in Wall Street's top investment banks. Bank of America pointed out that although Nvidia's stock price has repeatedly hit historical highs recently, there is still huge upside potential, as the chip company is expected to continue to dominate the AI chip market in the next few years. In a report released on June 5th (Wednesday), the bank reiterated its "buy" rating on Nvidia's stock and said the company led by Jensen Huang remains the top choice for the IT industry. Bank of America's strategist set a target price of up to $150 for Nvidia within the next 12 months (Nvidia's stock price closed at $130.98 on Monday).

Susquehanna recently increased its target stock price for Nvidia from $145 to $160. The institution said in the report: "Although our valuation is much higher than the industry average of about 28.5x, we believe it is reasonable because Nvidia can seize significant opportunities in the booming AI terminal market."

Renowned institution Rosenblatt on Wall Street has significantly raised Nvidia's target stock price from $140 to $200, maintaining a "buy" rating. This price of $200 given by the institution is the highest 12-month target stock price on Wall Street. In addition, Barclays has significantly raised Nvidia's target stock price from $120 to $145, while Argus Research has significantly raised Nvidia's target stock price from $110 to $150.

Edited by Jeffrey