Important Points
- Institutional purchases of NVIDIA, Astera Labs, Snowflake, Datadog, and CoreWeave offset extensive insider sales, suggesting that share prices may continue to rise.
- Datadog and Astera Labs face near-term correction risks, as analyst prices show modest upside following significant recent stock price gains.
- The rapid pace of AI development poses systemic risks, including potential bubbles and disruptive breakthroughs that could derail the wider commercialization of AI.
Insider trading isn't the red flag it once was because many C-suite executives, especially in the tech industry, get significant portions of their compensation in stocks, and regulations now cover the industry. The simple truth is that it is very difficult for insiders to sell inside information without getting caught: fines of up to 25 years are a huge disincentive. Insiders buying stocks is a more reliable signal, as they usually don't need to buy more stock once they've already gained exposure. Unless it is, they think the stock price will go up.
Insider Trading Is a Contrarian Signal in 2026
In today's market, insider trading is often fueled by pre-arranged 10b5-1 trading plans that protect insiders from prosecution while helping them lock in profits and income, diversify holdings, and maximize tax returns. Even CEOs need a raise sometimes. The most important details include other market changes, including the institutions and analysts who conduct them.
Insiders can sell all they want; if institutions and analysts buy stocks, the likely result is that stock prices will soon rise. While insiders sell in circles with names like NVIDIA (NASDAQ: NVDA ), Astera Labs (NASDAQ: ALAB ), Snowflake (NASDAQ: SNOW ), Datadog (NASDAQ: DDOG ), and CoreWeave (NASDAQ: CRWV ), their market power is consistent with emerging markets; the question is should we buy them now or will they yield better opportunities later this year.
Insider Selling Trends Seen in All Stocks: Institutions are buying
The internal statistics of these stocks reveal several common patterns. The first is that insiders have greater exposure, with an average of more than 9% of these companies, NVIDIA at 3.95% and CoreWeave at 20%, the highest. Within that, inside sales is broad-based, involving many directors, founders, and C-suite executives, including CEOs, CFOs, and COOs. While activity is expected to peak in 2026 or hold firmly near long-term highs, it's not surprising, given the stock's price increases over the past few years. Average gains are in the triple digits, with most stocks up the most on a trailing 12-month (TTM) and year-to-date basis.
Institutions are strong in these names, having accumulated shares in all of them during the TTM period. However, activity is mixed in others, with quarterly balances showing distributions outside of the TTM balance. Stocks with institutional bullishness, as shown by Q2 activity, include NVIDIA and Snowflake, although these trends are likely to end next quarter. Both are well positioned for the AI boom, albeit in different ways: NVIDIA is likely to hit consensus estimates again in its Q2 2027 fiscal year release, while Snowflake is expected to show more acceleration.
Tech stocks with institutional tailwinds as Q2 2026 comes to a close include Astera Labs and CoreWeave. Astera Labs' facilities have bought on balance for more than eight consecutive quarters, running at a pace of $2 to $1 TTM, with activity holding strong in Q2. CoreWeave's institutional activity reveals that the group is buying TTM and entering Q2 strongly, supporting the stock price rise.
Analysts Call for Action: Some Markets Are Set for a Correction
Analyst trends are valid, including stable or rising coverage and rising target prices, but there is some risk in the data. While analysts NVIDIA, Snowflake, and CoreWeave lead their markets, showing a large double-digit rise in approvals, with trends pointing to the high end, Astera Labs' and Datadog's rise is limited in the near term.
Datadog's nearly 120% surge from April to June left the stock looking close to fair value, while Astera Labs is trading above its consensus target and near the upper end of the expected range. Both stocks may be at risk of a pullback or consolidation near late June levels unless new catalysts give investors another reason to keep buying. Those catalysts could come during the next earnings cycle, with Astera Labs expected to report in early August, Datadog and CoreWeave expected the next day, and NVIDIA and Snowflake expected later in the month.
The biggest risk for these stocks is the unprecedented speed at which the AI revolution is unfolding. At this rate, seeking speed and power over safety raises red flags and can lead to bubbles, systemic vulnerability, and mistrust.
As it stands, the AI bubble continues to swell and is unlikely to stop anytime soon. Ideas take center stage, and with it comes a new wave of infrastructure needs. Individually, risks include competition. AI supports individual strengths, but it also creates a virtuous cycle where new technologies lead to further improvements and new, more powerful technologies. In this area, a game-changing advance may appear at any time, which may disrupt the entire AI trade.
Companies in this article:
| Company | Current Price | Price Changes | Dividend Yield | The P/E ratio | Consensus ratio | Consensus Price Target |
|---|---|---|---|---|---|---|
| NVIDIA (NVDA) | $198.08 | +1.6% | 0.50% | 30.34 | Buy it | $303.84 |
| Astera Labs (ALAB) | $486.53 | +6.7% | N/A | 330.15 | Buy Medium | $265.75 |
| Snow (Snow) | $252.83 | +0.5% | N/A | -71.85 | Buy Medium | $293.53 |
| Datadog (DDOG) | $259.13 | +4.2% | N/A | 679.94 | Buy Medium | $242.09 |
| AST SpaceMobile (ASTS) | $89.04 | +2.6% | N/A | -50.06 | Reduce | $85.09 |
Experience
Thomas Hughes has been a contributing writer for InsiderTrades.com since 2019.
- Professional Background: Thomas Hughes is the Managing Partner of Passive Market Intelligence LLC, a market research platform he founded in 2023 with the motto: “We watch the market so you don't.” He has worked as a blogger, stock market analyst, and independent analyst since 2010 and has been involved in trading and investing since 2005.
- Confirmation: He has an Associate of Arts in Culinary Technology-training that has enhanced his discipline, attention to detail, and ability to anticipate results, all of which continue in his work as a market analyst.
- Financial Experience: Thomas has been writing about finance and investing since 2011, when he discovered it could be more than a personal passion—it could be a career. He has been a contributing writer for InsiderTrades.com since 2019.
- Writing Focus: He specializes in the S&P 500, small-cap stocks, high-yield diversification strategies, consumer staples, retail, technology, oil, and equities. His analysis combines chart-based technical setups with key fundamentals, helping readers identify potential trends.
- How to Invest: Thomas takes a hybrid approach that combines technical analysis with in-depth fundamental research. He often writes about macroeconomic shifts, wage trends, and sentiment-based trading signals.
- Motivation: Thomas became interested in stocks after attending a seminar on buying and selling your own stocks. That experience opened his eyes to the power of the market and sparked a lifelong interest in investing.
- Fun fact: Thomas picked up a model railroad by accident a few years ago—and now he can't stop using the railroad.
- Areas of Expertise: Technical and fundamental analysis, S&P 500, retail and consumer sectors, equities, market trends
Education
Associate of Arts in Culinary Technology
