Nvidia’s Rollercoaster Ride: Record Highs, Insider Selling, and a $295 Billion Market Cap Plummet in One Day

On Friday, the 8th of March, Nvidia’s $NVDA, soared to a peak of nearly $974 per share at 10:30 AM Eastern Time. However, within just three hours, by 1:30 PM ET, the stock tumbled to $870, marking a staggering 11% drop. This abrupt decline amounted to a jaw-dropping loss of $257 billion in market capitalization. Astonishingly, during this tumultuous period, the company was shedding nearly $100 billion in market value every hour.

Adding to the intrigue, insider selling within Nvidia Corp. made headlines on the 5th of March. Two prominent directors, Tench Coxe and Mark Stevens, collectively divested approximately $180 million worth of shares amidst the company’s unprecedented stock performance. Tench Coxe, the third-largest shareholder of Nvidia, opted to sell 200,000 $NVDA shares acquired way back in 1997, with a total value reaching $170 million. Despite this substantial sale, Coxe still retains a significant stake, boasting over 3.7 million shares. His tenure as a board member since 1993, coupled with his previous role as managing director at Sutter Hill Ventures, underscores the significance of this move. Coxe’s divestment occurred on March 5th, with shares fetching prices between $850 and $852.50.

Mark Stevens, a director since 2008, also participated in the sell-off, disposing of 12,000 shares on March 4th, fetching prices ranging from $852 to $855. Furthermore, considering the after-hours movement that placed $NVDA at $852, the overall market cap loss from its peak amounted to a staggering $295 billion.

It’s important to contextualize these developments within the broader landscape: Nvidia ranks as the third-largest public company globally. Just a few weeks prior, the company celebrated a record-breaking achievement with the largest market cap gain in a single day. However, the sudden reversal of fortunes underscores the volatility and dynamism of the stock market.

Update

Mark Stevens, the second-largest shareholder of Nvidia and a board member since 2008, has recently offloaded 11,000 shares of NVDA, amounting to roughly $10 million. This transaction contributes to his total sales of over $100 million worth of shares in the current year alone.

NVIDIA Corporation (NVDA) revealed that board member Mark L. Perry sold 7,000 shares of company stock at $887.89 per share on April 2, 2024.

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