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AI insiders had already cashed out $7.4 billion before stocks crashed

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AI insiders had already cashed out $7.4 billion before stocks crashed

Insiders at publicly traded AI companies personally cashed out $7.4 billion near peak prices from May through October — right on time. An index of the largest AI stocks, the PHLX Semiconductor Sector, has crashed 32% since its October high.

Since the start of November, this widely-followed AI index has declined 16% and on Thursday, US-listed stocks shed $3.2 trillion in market capitalization in a single trading session. Meanwhile, the Nasdaq 100 index collapsed 6.4%.

Meltdowns were even worse abroad, including a limit-down circuit breaker after South Korea’s KOSPI index crashed 8.5%.

Insiders at AI companies, however, are already sitting on cushy, realized gains.

Across 282 SEC Form 4s from May through October, insiders at nine US AI companies cashed out $7.39 billion. Excluding $179 million in tax-related sales, discretionary exits still exceeded $7.2 billion across 243 filings. 

The selling was by leaders at Nvidia, Oracle, Micron, Broadcom, AMD, SanDisk, CoreWeave, Arista, and Astera Labs who locked in premium prices.

Among them, Nvidia director Mark Stevens unloaded $407 million in June and notified the SEC of his potential to sell an additional 5 million shares worth over $1 billion at the time. 

Stevens’ total sales across five filings this year have surpassed 6 million shares and $1.3 billion worth of NVDA common stock at prices between $210-235 per share.

Four other insiders added $24.5 million to the Nvidia insider selling tally. For context, Nvidia closed for trading yesterday at $181.60 per share.

7 million.



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