Should You Buy Nvidia Stock Before the Blackwell Launch? 1 Incredibly Important Detail May Give You the Answer.

One of the most important pieces of generative artificial intelligence (AI) development is sophisticated chipsets called graphics processing units (GPUs). Right now, Nvidia (NASDAQ: NVDA) absolutely dominates the GPU realm thanks to its A100 and H100 chipsets.

While these products contributed to record revenue and profit growth for Nvidia over the last couple of years, the company's new Blackwell series GPUs could wind up being its biggest product yet.

With Blackwell set to launch later this year, is now a good time to buy Nvidia stock? Below, I'll reveal one clue that could help in making your decision.

Jensen is a great marketer

CEOs are more than just executives who sit atop the organizational structure. They are often masters at marketing, and Nvidia CEO Jensen Huang is no exception.

During a recent interview on CNBC, Huang said that demand for Blackwell is "insane" and that "everybody wants to have the most and everybody wants to be first."

All things considered, early signs indicate that Nvidia will have no problem selling its Blackwell GPUs. But with so much potential on the horizon, I just can't help but fixate on one peculiar statistic.

What are Nvidia insiders doing with the stock?

The term "insider" is applied to people such as members of a company's board of directors or senior executives. Entities or investors owning over 10% of the company are also considered insiders.

Many of Nvidia's insiders have been selling the stock throughout 2024. Granted, much of the activity stems from terms of automatic sales protocols agreed upon in the past. However, there's one thing surrounding Nvidia's insider activity that I can't seem to get over.

According to public records, the last time an insider at Nvidia bought stock was back in December 2020, when the company's chief financial officer, Colette Kress, bought 200 shares on the open market.

Should you buy Nvidia stock right now?

I fully understand that rules set forth by the Securities and Exchange Commission (SEC) pertaining to insider buying and selling are stringent. Right now, it's highly likely that Nvidia's insiders know a lot of details surrounding Blackwell that are not yet public.

This could include production volumes, purchase orders, backlog trends, and more. For this reason, it would look a little nefarious if an insider made a massive purchase of the stock as the Blackwell launch looms.

However, let's zoom out and think about the bigger idea here.

The prospects of AI have been the primary pillar of Nvidia's bull thesis for a couple of years now. Moreover, developing a successor product to the H100 was not an overnight project. Considering those points, insiders had the opportunity to scoop up shares in anticipation that Nvidia's research and development (R&D) investments would bear fruit at some point down the road.