Shares of Nvidia (NVDA) have been on a tear this year as the chipmaker has become the leader of AI infrastructure. However, it appears that CEO Jensen Huang has taken advantage of this rally by dumping hundreds of millions of dollars worth of shares over the past few months. While insider sales could be a sign of issues within the company, that doesn’t seem to be the case with Nvidia. Thus, investors probably do not need to worry about this issue specifically.
In fact, Huang still has a significant stake in the company, valued at $110 billion, according to TipRanks. Therefore, his transactions were likely due to personal reasons. This is especially true since they are automated transactions and not the result of some company-specific developments.
Investor Sentiment for NVDA Stock
The sentiment among TipRanks investors remains positive. Out of the 752,064 portfolios tracked by TipRanks, 19.9% hold NVDA stock. In addition, the average portfolio weighting allocated towards NVDA among those who do have a position is 13.38%. This suggests that investors of the company are extremely confident about its future.
Furthermore, in the last 30 days, 2.9% of those holding the stock increased their positions. As a result, the stock’s sentiment is above the sector average, as demonstrated in the following image:
What Is the Target Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 37 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 163% rally in its share price over the past year, the average NVDA price target of $144.17 per share implies 16.51% upside potential.
