Most everybody loves NVDA. Is that exactly why it’s time to sell? 🚀🧠

NASDAQ: NVDA | $185.81 | +$0.87 (+0.47%)
As of Jan-13-2026, 4:15 PM ET

🎯 FunStock Index™: 7.3 / 10 🎯
Tooltip: An extraordinary company at the center of the AI universe — but expectations are now stratospheric, and gravity still exists.

If the AI boom had a face, it would be wearing a black leather jacket and answering to Jensen Huang.

NVIDIA is not just another semiconductor company. It is the infrastructure backbone of modern AI — the picks, shovels, bulldozers, and operating system powering data centers, foundation models, autonomous systems, digital twins, robotics, and whatever comes next.

The question in 2026 is no longer “Is Nvidia great?”
It’s “Is Nvidia still a great stock from here?”

Let’s break it down — hype, heroics, and hard truths included.

🧠 What NVIDIA Actually Is (Beyond the Logo)

NVIDIA is now best understood as a full-stack computing infrastructure company:

• Data Center & AI (the crown jewel): GPUs, networking (NVLink, Spectrum-X), Grace-Blackwell systems, and AI factories sold by the gigawatt.

• Software Moat: CUDA, Omniverse, AI Enterprise — the ecosystem glue that keeps customers locked in.

• Gaming & Visualization: Still strong, still profitable, but no longer the growth engine.

• Automotive & Robotics: Long-dated optionality with meaningful future upside.

This isn’t a chip company anymore.
It’s a platform monopoly in the hottest industry on Earth.

🔴 Trigger #1: Insiders Are Selling (A Lot)

Let’s address the elephant first.

There have been no insider buys in years — but plenty of insider selling, including regular, systematic sales by CEO Jensen Huang and other top executives.

Important context:

• These are largely pre-planned sales.

• Jensen still owns hundreds of millions of shares.

• This is normal behavior for Big Tech winners.

Still, when every insider is a seller and none are buyers, it’s a yellow flag, not a red one. 🚦

Interpretation:
Management is confident in the business — but clearly comfortable taking chips off the table.

🏦 Trigger #2: Institutions & Hedge Funds Are All In

This is one of the most institutionally owned stocks on the planet:

• ~70% of shares held by institutions

• Top holders include Vanguard, BlackRock, Fidelity, State Street, JPMorgan

• Hedge-fund royalty: Baillie Gifford, Sands Capital, Tiger Global, PRIMECAP

NVIDIA is a core position, not a trade.

Paradoxically, though:

• Only ~73% of the float is institutionally held

• For a company this dominant, that’s… lower than expected

Translation: there may still be incremental buyers, but most large funds are already heavily exposed.

🔍 For Nvidia (NVDA)'s Institutional Ownership breakdown, see here. 

🧸 Trigger #3: Michael Burry Goes Short

Yes — Michael Burry is betting against Nvidia (via puts).

His thesis:

• AI build-out risks overcapacity

• Nvidia is the purest AI play, and thus most exposed

• Parallels to Cisco in the late 1990s

• Calls the AI boom a “glorious folly”

This is provocative — and controversial.

Important nuance:

• Burry is not saying Nvidia is a bad company

• He’s saying expectations may exceed sustainable demand

It’s a timing and valuation bet, not a quality critique.

🧮 Trigger #4: Short Interest Is Tiny

Despite the noise:

• Short interest ≈ 1.1%

• Days to cover ≈ 1.6

This is not a crowded short.

The market, as a whole, is still firmly bullish.

📈 Trigger #5: Analysts Are Extremely Bullish

Wall Street consensus:

• Strong Buy

• Average price targets: $256–$265

• Implied upside: ~40%

Analysts are betting on:

• Continued AI capex

• Blackwell → Rubin → next-gen dominance

• Earnings growth of 50%+ in FY26–27

When analysts are this aligned, it often means:

• The story is real

• The bar is very high

💰 Trigger #6: Valuation — Expensive… or Reasonable?

Here’s the paradox:

Looks expensive:

• Price/Sales ~25×

• Price/Book ~38×

Looks reasonable:

• Forward P/E ~24×

• PEG ~0.7 (implying growth > price)

For a company growing revenues 60%+ YoY with 73% gross margins, this valuation is not insane — but it’s also not particularly forgiving.

📊 Trigger #7: Earnings Were Simply Stunning

Q3 FY26 highlights:

• Revenue: $57B (+62% YoY)

• Data Center: $51.2B (+66% YoY)

• Gross margins: ~74%

• EPS: $1.30 (+67% YoY)

Jensen Huang summed it up best:

“We’ve entered the virtuous cycle of AI.”

Cloud GPUs are sold out.
AI factories are being built by the dozens.
NVIDIA is literally capacity-constrained by demand.

This is not hype.
This is execution at planetary scale.

👉 Want the full picture? Dive into Nvidia (NVDA)'s financials here.

⚠️ Risks (Yes, Even for NVIDIA)

Let’s be grown-ups:

1️⃣ Valuation & Expectations

When a stock is loved this much, even great results can disappoint.

2️⃣ Competition

• AMD, Intel, Marvell

• Hyperscalers building custom ASICs (TPUs, Trainium)
  NVIDIA still leads — but moats must be defended.

3️⃣ Geopolitics

• China export restrictions

• Regulatory unpredictability

4️⃣ AI Spend Cycles

AI capex won’t grow 60% forever.
When growth slows, multiples compress.

💡💡💡 Curious about another deep oil exploration play?
Check our take on UnitedHealth Group.

⚡ Quick Take / TL;DR

• 🏆 Best-in-class company in the most important tech shift of our lifetime

• 💰 Phenomenal fundamentals and execution

• 📈 Valuation is not crazy, but expectations are extreme

• 🧠 Insiders selling ≠ bearish, but worth noting

• ⚠️ Upside remains — but other stocks may outperform from here

This is no longer an “early innings” stock.

❓ FAQ

Is NVDA still a buy in 2026?
Yes — if sized appropriately and with realistic expectations.

Is this a bubble?
The company is real. The risk is over-enthusiasm, not fraud.

Better than AMD or other AI plays?
For dominance and execution — yes. For upside from here? Maybe not.

Should I sell if I own it?
Not necessarily. But trimming or rebalancing is rational.

✍️ About the Author

Frédéric Marsanne is the founder of FUNanc1al — part market analyst, part storyteller, part accidental comedian. A longtime investor, entrepreneur, and venture-builder across tech, biotech, and fintech, he blends sharp insights with humor to help readers laugh, learn, live better lives, and invest a little wiser. When not decoding insider moves or poking fun at earnings calls, he’s building Cl1Q, writing fiction, painting, or discovering new passions to FUNalize.

🧾⚠️📢 Fun(anc1al) but Serious Disclaimer: 🧾⚠️📢

NVIDIA is a remarkable company — but great companies are not always great stocks at every price. Even if NVDA does well in 2026, other names may do much better. Size wisely, diversify intelligently, and remember: in markets, even the best graphics can still glitch. 🎮📉

This article is for informational and entertainment purposes only and is not financial advice. 

We laugh, we analyze, we meme. 
We’re FUNancial advisors — not financial advisors. 😄📉📈
Consult a qualified financial professional if you must.

Invest at your own risk. Love at any pace. Laugh at every turn. 😄
Be Happy. 😄😄

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