Nvidia, it's broken!
As of the close of trading on the 24th local time, Nvidia's stock price closed at $118.11, a decrease of 6.68%, and continued to decline after hours. It is worth noting that Nvidia's stock price has fallen significantly for three consecutive trading days, with the stock price dropping more than 16% from its recent high. The market value has evaporated by over 550 billion US dollars (approximately 4 trillion yuan), and the total market value has fallen below 3 trillion US dollars, falling into the correction zone.
In the past two years, Nvidia has been known as a "wealth creation myth", claiming that "buying is earning". Its stock price rose nearly 240% last year and exceeded 170% this year. Last week, it briefly topped the "world's largest market value" throne. Numerous individuals, including the "Congressional Stock God" and former US House Speaker Pelosi, have seized enormous wealth from it.
Analysis has pointed out that the US stock market's "Three Witch Days", frequent cashouts by Nvidia executives such as Huang Renxun, and profit taking by some investors have all severely impacted Nvidia's stock price. So is Nvidia really going to "turn off"?
Huang Renxun Continuously reduces his holdings in NVIDIA
690 million yuan has been cashed out
According to information disclosed by the US Securities and Exchange Commission, on June 21st local time, Huang Renxun sold 120000 shares of Nvidia stock again. Along with this sale, Huang Renxun has reduced his holdings of 720000 shares of NVIDIA shares in the seven trading days from June 13th to present, with a total cash out amount of nearly 95 million US dollars, equivalent to approximately 690 million yuan.
Specifically, Huang Renxun sold 120000 shares of NVIDIA on June 13th, June 14th, June 17th, June 18th, June 20th, and June 21st local time. In addition to Huang Renxun, some executives of Nvidia are also reducing their holdings and cashing out.
The last time Huang Renxun sold NVIDIA stocks was in September last year, when he exercised his rights to buy 29684 NVIDIA stocks at a price of $4 per share and sold them, with an average selling price of $455.75, earning nearly $13.5 million.
Huang Renxun's reduction of holdings can be traced. At the end of March this year, Nvidia released a detailed quarterly financial report (Form 10-Q), stating that Huang Renxun had set up a 10b5-1 stock sale plan on March 14, which would sell up to 600000 Nvidia shares by the end of March 2025.
Analysis indicates that the stocks sold by Huang Renxun are part of his executive compensation plan and belong to restricted stock units (RSUs) and performance stock units (PSUs). The CEO of the company often sells such stocks when allowed. Meanwhile, data shows that Huang Renxun still holds a significant amount of stock in Nvidia. As of March 25th this year, Huang Renxun has accumulated nearly 93.5 million shares of NVIDIA stock, accounting for almost 3.8% of the company's total outstanding shares.
Some people believe that "excessive pursuit"
Someone suggests "buying on dips"
According to foreign media reports, after several months of hot market conditions, investors may seize the opportunity to lock in profits. "I don't think the feast has come to an end, but it's a difficult journey. There are many other areas in the technology field that can offer better risk/return," said Stephanie Link, Chief Investment Strategist at Highpower, in an interview last Friday, stating that Nvidia's stock is "excessively sought after.".
CNBC
Nvidia stated that the demand for its valuable artificial intelligence graphics processors (GPUs) remains high, with companies including Microsoft, Google, Amazon, Oracle, and Meta purchasing chips worth billions of dollars to power their data centers and cloud services.
Later this year, Nvidia will begin shipping its next-generation artificial intelligence chip called Blackwell, which some analysts say may bring another significant growth cycle for Nvidia and its partners.
"Nvidia's performance will continue to improve for the next 18 to 24 months," Constellation Research founder Ray Wang said on Monday on NBC's "Squawk Box" program. "I think now is a good time to buy on dips."
(This article does not constitute investment advice, and the risk of operation is borne by oneself based on it)
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