This article first appeared on GuruFocus.
Nvidia (NVDA, Financials) and Broadcom (AVGO, Financials) executives have sold off a lot of their shares. This makes people wonder how insiders feel about semiconductor stocks, which are at all-time highs.
According to recent disclosures, Nvidia Director Mark Stevens sold 222,500 shares for over $40 million on December 19. This was the eighth time he had done business this year. On December 18, Hock Tan, the CEO of Broadcom, sold 130,000 shares for almost $42 million, which lowered his stake by more than 18%.Insiders at Nvidia have sold roughly $219 million worth of company stock in the previous three months, while executives at Broadcom have sold about $100 million worth. Right present, insiders don’t seem very confident in either stock.Even if the transactions went through, analysts still believe both companies are attractive investments. They claim this is because there is still a lot of need for chips for AI and data centers. Shares of Nvidia and Broadcom have gone up by 4.3% and 1.9% in the last week, respectively.As 2026 approaches closer, investors will keep a watch on whether more insiders selling implies the sector is beginning to slow down.