An Nvidia Insider Just Dumped a Bunch of Shares

Nvidia  (NVDA) - Get Free Report shares have been on a tear recently as the prospect of the company's chips being at the center of the AI revolution have pushed the stock to unprecedented levels. 

There will always be some form of insider trading at a company that is close to having a $1 trillion market cap and Nvidia is no different. 

DON'T MISS: Elon Musk Has a Blunt Message for Nvidia

This week, Harvey Jones, who is on the company's board of directors and is a managing partner at Square Waves Ventures, disclosed the sale of $28 million of company stock on June 2. 

Harvey sold more than 70,000 shares at an average price of $405 per share. Nvidia opened at all all-time high of $405 per share on May 30, but the stock has lost some steam since then. 

Shares closed on June 7 trading down more than 3% to $374.75.

While Harvey's sale was the biggest insider dump this month, fellow director Tench Coxe sold 100,000 shares on May 26 at an average sale price of $379 per share for a return of $37.9 million. 

Meanwhile CEO Jensen Huang has hung on to his shares and watched his net worth grow by $22 billion in 2023. He now sits at number 37 on Bloomberg's Billionaire Index with a net worth approaching $35 billion.

But some say the stock is overvalued based on the company's revenue and profit history. 

The AI-focused tech giant beat analyst expectations on both revenue and earnings for its first-quarter fiscal year 2024 results. Nvidia reported non-GAAP earnings of $1.09 per share, compared to estimates of $.92, and revenue of $7.19 billion, up from the estimated $6.5 billion.