Insider Trading Warning in AI Revolution
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
- Insider Trading Warning: Since late January 2021, insiders at Nvidia and Palantir have net sold $12.83 billion in stock, indicating a lack of confidence from executives that could undermine investor sentiment.
- Market Valuation Bubble: Nvidia's price-to-sales ratio exceeded 30 in early November, while Palantir's approached 100, suggesting both companies may be experiencing valuation bubbles, prompting caution among investors.
- Sales Growth vs. Sustainability: Despite significant sales growth in AI, contributing to nearly $4.3 trillion in market cap increase, the ongoing insider selling raises concerns about the sustainability of this growth trajectory.
- Competitive Advantages: Nvidia's dominance in AI data center GPUs and Palantir's unique applications in government contracts create strong competitive moats, yet the insider selling could weaken market confidence in their long-term prospects.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 175.750
Low
200.00
Averages
264.97
High
352.00
Current: 175.750
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Future Revenue Expectations: Nvidia anticipates first-quarter revenue of $78 billion for fiscal year 2027, representing an almost 77% increase compared to the same period last year, reflecting strong growth potential in the Agentic AI applications sector, which will further drive demand for AI chips.
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- Historical Performance Insight: Since the AI arms race began in 2023, Nvidia has experienced four 20% pullbacks, each followed by a new all-time high within six months, demonstrating its strong recovery capability and market potential.
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