have sold shares worth more than $700 million. The chipmaker's stock has surged to record levels, driven by the relentless need for computing power and the escalating competition in the AI accelerator chips market.

According to data compiled by the Washington Service, executives and directors at Nvidia have unloaded approximately 770,000 shares so far this year, making it the highest-selling period since the first half of 2023 when around 848,000 shares were sold. However, the dollar value of this year's share sales has surpassed all previous periods due to the astounding 168% gain in Nvidia's stock price in 2024.

Nvidia, now ranking as the world's third most valuable company with a market capitalization of approximately $3.25 trillion, is narrowly trailing behind tech giants Microsoft Corp. and Apple Inc. The company's rise in valuation is primarily attributed to the fierce competition among companies to enhance computing capabilities, driving up the demand for AI accelerator chips, an area where Nvidia dominates.

Significantly, more than a third of the total shares sold this year by insiders have occurred since Nvidia's fiscal first-quarter earnings report on May 22. The report's better-than-expected revenue forecast for the current quarter, coupled with the announcement of a stock split, triggered a fresh surge in the company's shares. Among the notable sellers are directors Mark Stevens and Tench Coxe. Just yesterday, CEO Jensen Huang disclosed the sale of approximately $31 million in shares under a pre-arranged trading plan.

While insider selling has been substantial, there has been a lack of insider buying activity at Nvidia. Apart from Chief Financial Officer Colette Kress's purchase of $107,390 in shares in December 2020, there have been no reported insider stock purchases at the company, as per data compiled by the Washington Service.

In the broader tech market, concerns are arising as the rally in AI-related stocks, including Nvidia and Broadcom Inc., drives the Nasdaq 100 index to new record highs. The 14-day relative strength index, a metric measuring price momentum, has reached its most overbought level since 2018. This suggests that the market may be poised for a correction or pullback.

As Nvidia insiders continue to seize the opportunity to cash in on the soaring demand for its chips and the company's record-breaking stock performance, the absence of insider buyers suggests a cautious outlook. Investors and market analysts will closely monitor the ongoing developments surrounding Nvidia's stock and its impact on the overall tech market, keeping an eye on any signs of overheating or potential market correction.