Nvidia is on the path to doubling its quarterly revenue in just over a year, however its CEO began to part with company shares while a dubious theory against the company appeared. Is the power over?
Nvidia was the big star on Wall Street this year thanks to the Artificial Intelligence boom. The leading company in the manufacturing of graphics processing units has just presented its quarterly income report, in which it reported revenues of US$13.51 billion. However Her shares began to decline, hit by some rumors that weigh on her.
Specifically, the fall in the shares of the leader in artificial intelligence occurred when a dubious conspiracy theory spread on X, the social network formerly known as Twitter, which suggested that Nvidia had artificially inflated revenue in its AI segment by lying about its sales to CoreWeave, an Nvidia-backed cloud computing startup valued at about $8 billion.
At the same time, this day was known that The CEO of Nvidia sold up to $50 million in shares of his own company. In fact, in the last 3 months, “insiders” sold up to US$256 million in company shares and in the last 2 years up to US$876 million. This is surprising considering that Nvidia presented a revenue forecast of $16 billion for the third quarter of its fiscal year 2024.
Market analyst Jesse Cohen noted in this regard that the selling of shares by insiders in Nvidia “often indicates an upcoming sell-off. Historically, Huang’s sales were followed by significant declines in Nvidia stockDespite this, some analysts remain bullish on Nvidia, with 3 in 4 of the major investment firms reiterating their ‘Buy’ rating.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
