Nvidia shares fell again as selling continued

Nvidia shares were falling further on Monday, down 5%, as the selling pressure continued – with the price now close to 10% lower for the past week.

Amongst the stock sellers was Nvidia founder and chief executive Jensen Huang, who via a ‘Rule 10b5-1 trading plan’ – an arrangement that allows company insiders to sell a specified number of shares at a specified time – sold around $95 million.

‘Overbought’ is the phrase most often bandied around in the market analysis, and, it should not be forgotten that the chip-maker is still up a remarkable 150% in 2024 to date.

The surging price rise saw Nvidia, briefly, become the world’s most valuable company with its market capitalisation piercing the $3 trillion marker.

With such an advance some pause or pullback should be somewhat expected, but nonetheless the decline of recent days appears to have captured the anxieties of some.

“One minute it’s the world’s most valuable company and the next minute it is down 7% in 5 days and is lagging the broader US blue chip stock indices,” XTB research director Kathleen Brooks said in a note.

“Interestingly, the sell off in Nvidia has not been followed by declines in other Magnificent 7 stocks today.

“Apple and Microsoft, the other tech megaliths, are higher so far on Monday, and Tesla is the best performer in the Nasdaq 100 index on Monday and is up nearly 3% at the start of this week.”

Brooks pointed to potential ‘tech fund rebalancing’, profit taking amongst retail investors, and broader volatility as factors in the sell off.