NVIDIA's Market Value Drops $31 Billion Overnight, Stock Price More Than Doubled This Year
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On December 4 local time in the U.S., CNMO noted that NVIDIA closed down 2.68% at $455.1, with a market capitalization of $1.1 trillion. Its market value evaporated by $31 billion (approximately RMB 221.4 billion) overnight. The closing price approached the November 3 closing level of $450.05, marking a pullback of over 9.7% from the all-time high closing price of $505.09 set on November 20. Data from Washington Service showed that NVIDIA insiders sold or filed to sell 370,000 NVIDIA shares in November, with these shares valued at approximately $180 million. If all these shares are ultimately sold, it would represent the largest single-month sell-off in dollar terms in at least six years. Notably, NVIDIA's stock price has surged by 220% this year.
After more than doubling in 2023, NVIDIA's stock price has recently started to decline. Since November 21, the company's stock price has dropped by about 6%. On November 21, driven by strong demand for AI computing chips, NVIDIA provided fourth-quarter earnings guidance that exceeded analysts' expectations. After such stellar stock performance, it is understandable that insiders might want to cash out. However, there is no doubt that such selling activity does little to inspire confidence in a future rebound. Data indicates that since 2020, NVIDIA insiders have not made any stock purchases.
Shana Sissel, CEO of Banrion Capital Management, which holds NVIDIA stock, commented: "It's interesting that there's a lot of selling activity but no buying. But given NVIDIA's outstanding stock performance, it's reasonable to take some profits."
A NVIDIA representative responded that most of the sell-offs were conducted under 10b5-1 plans, with prices, quantities, and sale dates predetermined.