Nothing has captured the attention of investors since the advent and proliferation of the internet in the mid-1990s quite like the rise of artificial intelligence (AI). Empowering software and systems with the tools to make split-second, autonomous decisions is a multitrillion-dollar addressable market.
Arguably, no companies have benefited more from the evolution of AI than graphics processing unit (GPU) titan Nvidia (NVDA 5.93%), data-mining specialist Palantir Technologies (PLTR 4.17%), and networking solutions kingpin Broadcom (AVGO 7.49%). Broadcom joined the trillion-dollar club in December 2024, Nvidia became the first public company to top $5 trillion in October 2025, and Palantir shares have skyrocketed 2,100% since the end of 2022.
While all three companies possess undeniable competitive advantages, the people who know these businesses best are sending worrisome signals.
Image source: Getty Images.
Insiders are sending a message -- are you paying attention?
No group understands a company better than its insiders. An "insider" is a high-ranking executive, board member, or beneficial owner of at least 10% of a company's outstanding shares. These are individuals who may possess non-public information.
Insiders are required by law to file Form 4 with regulators anytime they purchase or sell shares of their company, including the exercising of option contracts. This filing has to be made within two business days of a transaction.
Based on aggregated Form 4 filings over the trailing year (as of April 28, 2026), insiders at these AI juggernauts have sent shockwaves through Wall Street with their heavy net-selling activity:
- Nvidia: $2,396,602,073 in net selling
- Palantir: $1,058,424,816 in net selling
- Broadcom: $1,144,516,490 in net selling
Collectively, the hardware, networking, and application companies leading the AI revolution have seen their insiders dispose of approximately $4.6 billion in shares over the trailing 12 months.
NASDAQ: NVDA
Key Data Points
The caveat to this data is that not all insider sales are inherently nefarious. Since most high-ranking executives and board members receive the bulk of their compensation as stock or options, they often sell shares of their company's stock to cover their federal and/or state tax liability. There are several reasons to sell a stock, and tax-based selling isn't something investors should be worried about.
But the other side of this coin is just as important. Whereas several reasons exist to sell a stock, there's only one reason to be a buyer: the belief that shares will appreciate. Nvidia hasn't had a single insider purchase over the trailing year, while Palantir's and Broadcom's insiders have scooped up just $3.32 million and $1.55 million in shares, respectively.
Insiders aren't buying, which may signal that the people who know these companies best don't view their stock as a bargain.
NASDAQ: PLTR
Key Data Points
The time-tested price-to-sales (P/S) ratio strongly suggests this AI trio is historically expensive. Over the last three decades, P/S ratios above 30 for companies at the forefront of next-big-thing trends have signaled the presence of a bubble. As of the closing bell on April 28, Nvidia, Broadcom, and Palantir had respective trailing 12-month P/S ratios of 24, 28, and 81.
Executives at Nvidia, Palantir, and Broadcom may be optimistic about their company's future, but their actions say otherwise.
