On Monday of this week, Nvidia (NASDAQ: NVDA) retreated hard off its recent highs, after it was disclosed that CEO Jensen Huang sold $95 million worth of stock, or 720,000 shares, in just one week between June 13 and June 21. The sales were part of a trading plan in which Huang plans to sell up to 6 million shares of stock.

Reason to worry? Not necessarily. After all, even 6 million shares is a very small proportion of Huang's holdings, which amount to a whopping 866.7 million shares between personal accounts, partnerships, and trusts.

Still, with Nvidia skyrocketing 140% this year to briefly become the most valuable company in the world (rare for a semiconductor stock), and its valuation stretched accordingly, there are three big risks of which Nvidia shareholders need to be aware.

Continue reading

Source Fool.com