One week after offloading a large chunk of Nvidia (NASDAQ:NVDA) holdings, a prominent board member has offloaded even more shares. Harvey Jones made headlines last week when he sold over 70,000 shares of NVDA stock, priced at $405 each. Since then, the standout tech stock has only kept rising, gaining more than 8% over the past week. This has prompted Jones to take even further profits.
According to a recent filing with the U.S. Securities and Exchange Commission (SEC), the prominent Silicon Valley business leader has sold an additional $48 million worth of shares. In total, he has offloaded a total of 119,795 shares since the start of the year.
Does this mean Jones is giving up on Nvidia, even as the company continues to ride the artificial intelligence (AI) wave? Let’s take a closer look at his recent trading activity and assess what investors should be expecting.
What’s Happening With NVDA Stock
Since its stellar Q1 earnings report, Nvidia has been the toast of Wall Street. NVDA stock surged so much that it reached a trillion-dollar market capitalization, putting it in a truly elite category. However, even as it has risen, experts have expressed skepticism that its impressive growth can continue in the long term. InvestorPlace contributor David Moadel recently speculated that the company seems overvalued and that the AI bubble could spell trouble for it. As he notes:
“I’m not the only commentator with concerns about Nvidia’s valuation. Edmond de Rothschild Asset Management analyst Benjamin Melman recently took profits on NVDA stock. Referring to Nvidia and its sector peers, Melman warned, ‘Would we add to AI tech? We’re less and less sure on that as valuations are too lofty,’ and, ‘If the gains continue, we’ll be even more cautious.'”
According to data from finviz, Jones still holds 814,330 shares of NVDA stock. He likely isn’t giving up on it completely. However, it is clear that he wants to take some profits while Nvidia is still rising. The board member may be of the same mindset as the market commentators who see Nvidia as being overvalued. Whether or not Jones continues offloading shares will indicate how bearish he is on the company’s growth prospects.
On the date of publication, Samuel O’Brient did not have (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.
