After blasting past analyst expectations in its first-quarter earnings report, Nvidia (NASDAQ:NVDA) has been the toast of Wall Street, emerging as one of 2023’s top breakout stocks. In the week since reporting earnings, NVDA has also reached an even more impressive milestone, touching a $1 trillion market capitalization. That puts the company in the same club as some of the tech sector’s top players.
With so much going right for this company, it seems odd that anyone would be giving up on NVDA stock. Recently, however, one board member with a sizable stake in Nvidia offloaded a portion of their shares. Of course, this doesn’t necessarily mean they’re turning their back on NVDA. But it does warrant a closer look.
Here’s what investors should know.
Who Just Sold NVDA Stock?
Persis Drell is one of Nvidia’s most noteworthy board members. Drell has held the position of Provost at Stanford University since 2017 and has been on Nvidia’s Board of Directors since 2015. According to a Form 4 filing with the U.S. Securities and Exchange Commission (SEC), she sold 7,800 shares of NVDA stock on May 26 at $386.03 apiece. However, it’s important to note that Drell maintains the majority of her position, still holding 35,478 shares of the company. That indicates that Drell still believes in Nvidia’s growth potential and is simply reallocating some assets.
Given the recent price surge in Nvidia, it makes sense that some insiders might want to take profits while shares are on a roll. News of Drell’s sale hasn’t negatively impacted NVDA stock, either.
Today, Nvidia is rising again, up 3% as of this writing and showing no signs of a slowdown. Data from WhaleWisdom indicates that institutional investment in Nvidia remains very positive as well. All told, this company is well-positioned to keep riding the artificial intelligence (AI) and metaverse booms straight to the top.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
