$NVIDIA(NVDA.US) Jensen Huang sold NVIDIA shares again, causing many to worry: Will it plummet like it did last August right after the sale? But I think this time is different, and it might reveal some positive signals.

First, this sale wasn’t a sudden decision to "exit at the peak" but a pre-arranged transaction under the 10b5-1 plan. This mechanism is designed to avoid "insider trading" controversies, where executives set up automated sales months in advance. So, just because he sold some shares during a rally doesn’t mean he’s bailing out.

Looking at fundamentals, NVIDIA’s Q1 2025 earnings report was explosive: revenue hit $26 billion, up 262% YoY, net profit surged 628%, and data center revenue soared to $22.6 billion, accounting for 87% of total revenue. This shows no signs of slowing demand for AI chips, especially with major clients like OpenAI, Microsoft, and Amazon placing massive orders. Growth in the coming quarters looks even more solid.

Moreover, NVIDIA’s Blackwell chips haven’t even scaled up production yet. Many analysts predict this new product will trigger another wave of data center purchases. Goldman Sachs, Citigroup, and others have raised NVIDIA’s target price to over $1,200, citing its dominance in AI chips and control over the entire ecosystem.

Looking at the broader AI sector, TSMC’s May capacity utilization also hit a record high, reflecting strong downstream demand. Competitors like AMD and Broadcom are catching up, but NVIDIA still leads in technology and market share.

Of course, at such high stock prices, any minor news—macro rates, policy changes, or media interpretations—can trigger volatility. Last August’s drop was partly due to market sentiment that "it rose too fast," but in hindsight, it was just a pause before another rally.

My take: Short-term volatility is likely, but this isn’t the peak—it’s more like halftime. Jensen selling some shares doesn’t mean he’s bearish, just like taking profits when trading stocks. If you believe in AI’s long-term value, this pullback might be your "don’t miss out" opportunity.