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Barchart
Ebube Jones

3 Semiconductor Stocks Insiders Are Buying This February

Semiconductor stocks are as popular as ever to start 2024, with industry juggernaut Nvidia (NVDA) now officially worth more than Amazon (AMZN). But while some artificial intelligence (AI)-fueled chip stocks have seen their valuations soar, other semiconductor players have pulled back this year. Should investors try to follow the momentum - or buy the dip?

Insider buying activity is one way to narrow down the field of prospective semi stocks to buy. While company insiders - a group that includes executives, board members, and shareholders of 10% or more - might sell their stock for any number of reasons, legendary investor Peter Lynch would tell you they typically buy shares only when they think the price is going to rise. For investors who like to “follow the money," insider buying can be a compelling bullish indicator.

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