Nvidia’s (NVDA) meteoric rise as the undisputed leader in artificial intelligence (AI) hardware has made the stock a darling of Wall Street. Yet, recent filings reveal a dramatic shift among billionaire money managers and insiders. Amid NVDA’s ongoing rise, many insiders have continued to offload substantial stakes in the AI giant, as concerns about overvaluation and muted growth persist. 

With so much bullish sentiment in the AI space, building a portfolio to capture this growth without Nvidia stock in it would be difficult. But Nvidia is priced to perfection, so a misstep could spell disaster. That hasn’t been a concern so far, as the company has consistently delivered market-breaking quarters every earnings. 

So, is Nvidia stock a sell? An old adage by Warren Buffett might be many investors’ key to success.

AI Boom Fuels Nvidia’s Historic Market Cap Surge

The past two and a half years have seen AI dominate headlines and investment portfolios, with the technology’s projected economic impact estimated at $15.7 trillion by 2030. No company has benefited more directly than Nvidia, whose market capitalization soared by over $3 trillion in under two years, driven by insatiable demand for its graphics processing units (GPUs) in AI data centers. 

Billionaire Exodus: Profit-Taking and Caution

Despite Nvidia’s extraordinary growth, the latest 13F filings—mandatory disclosures for large institutional investors—show that most billionaire fund managers are aggressively selling Nvidia stock. This widespread selling is likely fueled by several factors:

• Profit-Taking: Nvidia’s unprecedented market cap gains present a rare opportunity for investors to realize significant profits. The scale of the rally is virtually unmatched among mega-cap stocks, prompting many to cash out. But, as outlined below, Warren Buffett describes this ideology as a mistake on the part of investors. 
• Rising Competition: Nvidia is really the only game in town when it comes to high-compute data center GPUs. But that’s starting to change because rivals are ramping up production. Major tech firms and GPU competitors alike are developing their own AI chips, which could start eating into Nvidia’s top line. These GPUs, though less powerful, are cheaper and more readily available. This erodes Nvidia’s future pricing power, market share, and could open up markets for companies looking to get some skin in the game without the 9-figure price tag and multi-year backlog.
• Margin Pressure: Increased competition and tariff concerns are already impacting Nvidia’s industry-leading gross margins, which have begun to decline from their peak. While the drop off is currently minimal, a continued slide could put Wall Street on edge and signal a top for investors. 
• Innovation Risks: CEO Jensen Huang’s strategy of launching a new AI chip annually cements Nvidia’s technological lead, but risks rapid depreciation of previous-generation chips. Betting that customers will upgrade hardware every year is a gamble that may not pay off over the longer term.
• AI Bubble Concerns: Many investors fear that the current AI investment frenzy could mirror past tech bubbles, where early over-optimism led to sharp corrections. Most businesses are not yet seeing positive returns on AI investments, raising the specter of a potential bubble burst, with Nvidia particularly exposed if growth expectations fall short.

Chase Coleman: The Lone Billionaire Bull

Amid this wave of selling, Chase Coleman of Tiger Global Management stands out as a rare exception. Instead of reducing his Nvidia exposure, Coleman increased his fund’s stake from 9.68 million shares at the end of 2023 to nearly 11 million shares by March 2025.

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Coleman’s bullish stance appears rooted in four key beliefs:

• Sustained Market Leadership: Nvidia’s dominance in AI data center GPUs remains unchallenged, with overwhelming demand for its Hopper (H100) and Blackwell chips.
• Supply-Demand Imbalance: Ongoing shortages in AI GPUs allow Nvidia to command premium prices, pushing gross margins above 70%.
• Relentless Innovation: Nvidia’s rapid chip development cycle—Blackwell Ultra in 2025, Vera Rubin in 2026, and Vera Rubin Ultra in 2027—suggests continued leadership in AI hardware.
• Valuation Opportunities: Share price dips in early 2025 may have made Nvidia’s forward earnings multiple attractive enough for further investment.

Warren Buffett’s Famous Warning

Warren Buffett famously warned, “Selling your winners and holding your losers is like cutting the flowers and watering the weeds.” (The saying originally came from Peter Lynch, but Buffett included it in a year-end report because he liked it so much.)

This adage resonates powerfully in the current climate surrounding Nvidia, where the company’s extraordinary performance has prompted many to question whether to keep riding the wave or lock in profits. But Buffett’s decades-long outperformance certainly warrants consideration of advice like this. 

Admittedly, both Peter Lynch and Warren Buffett said they struggled with selling stocks too early, which Buffett has described as his own greatest mistake. It’s an easy trap to fall into because underpinning this idea is that, yes, eventually investors do have to sell. 

Insiders Selling

To make the calculation even more complicated, insiders have been selling billions in Nvidia stock on the run-up. Recent months have seen a dramatic surge in insider selling at Nvidia, with CEO Jensen Huang alone scheduled to sell over $800 million in stock during 2025. This comes after sales of $1.5 billion between 2020 and 2024, including $713 million in stock sales in 2024 alone. As of 2025, he has been selling millions in shares nearly daily.

Director Mark Stevens also recently sold more than $149 million worth of shares, and, notably, there have been no insider purchases reported since 2020. In total, insiders have sold over $950 million in stock this year, and more than $1.6 billion over the last two years. While many of these transactions are pre-arranged through Rule 10b5-1 plans — standard practice for executives to manage their wealth and diversify portfolios — the sheer scale and timing of these sales, especially at the height of Nvidia’s valuation, have raised eyebrows among market watchers.

The absence of insider buying adds another layer of uncertainty, leaving investors to interpret whether this is a routine exercise in prudent financial planning or a subtle signal of caution from those who know the company best. Yet, in a twist, some members of Congress, including Marjorie Taylor Greene and Robert Paul Bresnahan, have recently acquired Nvidia shares, signaling political confidence in the company’s long-term prospects even as insiders cash out.

Beyond AI: Nvidia’s Expanding Horizon

While Nvidia’s dominance in AI hardware and data center chips has been the primary driver of its recent success, the company’s ambitions extend far beyond artificial intelligence. Upcoming announcements are expected to highlight Nvidia’s push into quantum computing, sovereign AI initiatives, and international collaborations for next-generation supercomputers. Projects like the JUPITER supercomputer in Europe and the new Blue Lion platform in partnership with Hewlett-Packard (HPE) showcase Nvidia’s growing influence in high-performance computing — a field that will underpin advances in quantum research, scientific simulation, and more.

Trade negotiations with China and recent announcements around Nvidia’s ambitious plans to build out its chip architecture at events like GTC Paris further illustrate that the company is positioning itself at the forefront of several transformative technologies. As the AI boom matures, Nvidia’s leadership in quantum computing, edge AI, and global infrastructure could open new revenue streams and reinforce its status as a technology bellwether.

Navigating Uncertainty

The flood of insider selling, juxtaposed with continued institutional and political buying, creates a landscape of mixed signals for investors. For some, it’s a cue to heed Buffett’s wisdom and let their “flowers” keep growing. For others, the prudent move may be to trim positions and lock in gains after an unprecedented run. 

What remains clear is that Nvidia’s story is far from over: with AI, quantum computing, and global partnerships on the horizon, the company continues to cultivate new fields of innovation—even as some of its own “gardeners” harvest their share of the bounty.