Chip Stocks Fall Again, GSK Drops $10 Billion on Nuvalent, Market Splits

The market is in a rotation phase that tech investors are finding uncomfortable. Money is leaving chips and AI hardware and landing in J.M. Smucker, Home Depot, and Nike, while GSK spent up to $10 billion acquiring Nuvalent's precision oncology pipeline.

The Nasdaq rebounded from its worst levels by the afternoon. Today's edition breaks down what is driving the shift.

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You’re looking at two huge charts after the move already happened. One stock is up more than 250% in a year, while another has more than tripled. But Elite Trade Club Insider readers are seeing the more important question: where are big holders and executives using that strength to turn gains into cash?

Every day, insiders and institutions move millions before the market catches on. We surface the data behind those moves before the rest of the market sees it.

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$25/mo or $250/yr. 30-day money back guarantee. Cancel anytime. Founding member pricing: lock in $25/mo before we raise it.Insider Watch: Big Winners Are Meeting Big Supply

Today’s filings are about one thing: supply after massive rallies.

Dell has become one of the market’s biggest AI hardware winners, with shares up more than 250% over the past year and more than 60% over the past month. Now, Silver Lake-related entities are selling and proposing additional sales into that move.

Garrett Motion has also been a major winner, with shares up more than 215% over the past year and trading near a 52-week high. Its CFO just sold 110,000 shares worth more than $3.5 million.

That does not mean either rally is over. But it does mean investors need to stop looking only at the story and start looking at timing, supply, and position risk.

Dell Technologies Inc. (NYSE: DELL)

Silver Lake-related entities filed a wave of Dell transactions on June 8 tied to June 4 sales and June 8 proposed sales.

The completed sales totaled roughly $167.9 million. The largest blocks included sales by SL SPV-2, L.P. worth about $35.6 million and $30.1 million, Silver Lake Partners IV, L.P. sales worth about $38.3 million and $32.5 million, and Silver Lake Partners V DE-related sales worth about $16.1 million and $13.7 million.

The proposed sales added another roughly $130.1 million, including about $54.8 million from Silver Lake Partners IV, L.P., $51.7 million from SL SPV-2, L.P., and $22.5 million from Silver Lake Partners V DE.

Combined, the completed and proposed transactions total approximately $298.1 million.

DELL recently traded around $400.77, up roughly 251% over the past year and about 62% over the past month. The stock is below its recent 52-week high of $469.47, but it remains a massive winner after Dell’s AI server story drove a major rerating.

The company also recently reported strong fiscal first-quarter results, with revenue up sharply year over year and earnings coming in ahead of expectations. Analysts have responded positively, with several firms raising price targets tied to AI demand and Dell’s stronger positioning in the hardware cycle.

The Takeaway:

This is the biggest supply signal today.

Silver Lake is not selling a broken story. It is selling into a stock that already had a monster move. That matters. When a stock climbs more than 250% in a year and major holders start putting hundreds of millions of dollars of supply into the market, the setup changes.

For you, DELL is a manage-the-win setup. The AI server story can still have legs, and Dell may continue benefiting from demand tied to enterprise AI infrastructure. But the stock is no longer early. After a 62% monthly move, the risk is that investors start paying too much for a story that insiders and major holders are already monetizing.

If you own it, review position size. If you missed it, do not chase just because the AI headline still sounds strong. The next pullback, margin update, or AI order commentary needs to earn your capital.

Garrett Motion Inc. (NASDAQ: GTX)

Garrett Motion CFO Sean Deason sold 110,000 shares on June 5 at an average price of $31.93, generating roughly $3.51 million in proceeds.

After the transaction, Deason still owns 261,909 shares.

GTX recently traded around $32.25, up roughly 215% over the past year. The stock is trading near its 52-week high of $34.34 and well above its 52-week low of $9.57. The company has also benefited from improved investor appetite for auto technology and turbocharger/electric-boosting exposure.

The broader insider pattern is worth noting. There have reportedly been no insider buys over the past year, while insider selling has been more active.

The Takeaway:

This is not as large as the Dell signal, but it is still a sale into strength.

A CFO selling $3.5 million after a 215% one-year move is not something to ignore. It does not automatically mean the business is weakening. It does mean a senior executive is taking money off the table while the stock is near the top of its range.

For you, GTX is also a discipline setup. The valuation is no longer hiding in plain sight. The stock has already repriced sharply, and insider activity is leaning toward sales rather than fresh buying. If you own it, protect the gain. If you are looking to buy, avoid treating a tripled stock like it is still undiscovered.

Both names saw insider selling after big rallies, but the intensity is different.

DELL: Silver Lake-related entities completed and proposed nearly $298.1 million in sales after a 251% one-year move and a 62% monthly surge.

GTX: The CFO sold roughly $3.5 million after a 215% one-year rally near the 52-week high.

DELL is the bigger supply event. GTX is the cleaner executive-sale signal.

Together, they tell the same broader story: insiders and major holders are not waiting for perfect conditions. They are using strength now.

Big insider selling does not automatically kill a rally. But it does change how you should treat the stock.

When a company is breaking out, analyst targets are rising, and the narrative is working, it is easy to focus only on upside. Insider filings force a more balanced view. They show you where people with large stakes are willing to reduce exposure.

Today’s read is direct: DELL is a risk-management setup after a huge AI-driven rerating. GTX is a profit-protection setup after a major one-year surge.

If you own either, do not ignore the filings. Review position size, cost basis, and whether the next catalyst still justifies the risk. If you are looking to buy, make the next pullback or operating update earn your capital.

The market already rewarded these stocks. Now insiders and major holders are taking some of that reward off the table.

The Nasdaq fell for a second session but rebounded sharply off its low point, which was down more than 3%, to close around 1.5% lower as investors rotated out of chip and AI infrastructure names into consumer staples, healthcare, and home improvement.

The WSJ outlined five reasons investors keep selling tech: profit-taking after the semiconductor index nearly doubled, SpaceX's impending IPO pulling cash from existing positions, Alphabet's equity issuance signaling more dilution ahead, rate hike fears from last week's hot jobs number, and buyers simply not stepping in to absorb the selling.

J.M. Smucker led the index while Home Depot led the Dow, nine of eleven sectors traded green, and the defensive rotation that started Friday is starting to look like a genuine shift rather than a one-day event.

GSK announced an agreement to acquire Nuvalent for approximately $9-10 billion, covering two late-stage lung cancer assets with FDA PDUFA dates in September and November, providing one of the session's few unambiguous pieces of good news.

Tesla Inc (NASDAQ: TSLA) just received approval from Denmark to deploy its supervised self-driving technology on public roads. This follows Estonia last month and the Netherlands in April. Three European countries in three months. The pace is picking up.

Sales Are Falling, Strategy Is Shifting

Tesla's European sales have dropped as competitors launch newer, fresher electric vehicles while Tesla's lineup ages. Political controversy has also pushed some buyers away. The traditional path back would be new models and aggressive pricing. Tesla is taking a different route entirely.

Instead of competing on hardware alone, Tesla is turning autonomous driving into the feature that makes its existing cars worth choosing again. You might not love the design, but a self-driving car completely changes the conversation.

Three Countries and Counting

Each European approval builds regulatory momentum. Governments watch what their neighbors approve. The Netherlands went first. Estonia followed. Denmark is third. Every new country that says yes makes the next approval easier and faster.

The Real Product Is Not the Car

Tesla has been saying for years that autonomy is the real business. Europe is now giving it the chance to prove that claim on public roads across multiple countries.

You stop thinking of Tesla as a car company the moment its most valuable feature is the software, not the vehicle. Denmark just brought that moment one step closer.

Boeing Company (NYSE: BA) delivered 60 aircraft in May, up 33% from a year ago. The 737 MAX accounted for 51 of those deliveries, the highest monthly total since production restarted after the strike in late 2024. Production is now ramping from 42 aircraft per month to 47 this summer.

The order backlog sits at over 6,100 planes. After years of recalls, quality failures, and production shutdowns, Boeing is quietly rebuilding momentum one month at a time.

The MAX Is Moving Again

The 737 MAX has been Boeing's biggest headache and its most important product simultaneously. Wiring flaws, software issues, and a door plug blowout dominated headlines for over two years. Hitting 51 deliveries in a single month does not erase that history, but it proves the production line is functioning at a pace Boeing has not achieved in a long time.

Still Chasing Airbus

Airbus delivered 81 aircraft in the same month. That gap remains significant. Boeing has ground to make up, and the competition is not standing still.

But the trajectory matters more than the snapshot. Your read on Boeing shifts when deliveries climb 33% year over year, and the backlog stretches past 6,000 planes. The demand exists. The question has always been whether Boeing can execute.

You follow this company through the worst stretch in its modern history, and a month like this feels like the first real exhale in years.

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PepsiCo Inc (NASDAQ: PEP) is scaling autonomous freight trucks across its entire North American food and beverage supply chain. The company has been testing driverless deliveries since 2022 in select markets. Now it is expanding the program into a network serving millions of customers with high-frequency, time-sensitive shipments every day.

PepsiCo already hits 98% on-time delivery. It is believed that autonomous trucks will push that number even higher while adding capacity that the current system cannot provide.

The Supply Chain Is the Secret Weapon

Most people think of PepsiCo as a snack and soda company. Underneath the brands sits one of the most complex logistics operations in the country. Getting Lay's, Doritos, Gatorade, and Pepsi onto shelves fresh and on time across thousands of locations requires a delivery network that never stops moving.

Autonomous trucks do not call in sick, do not need rest breaks, and run on schedules that you can adjust in real time based on demand shifts at individual distribution centers.

A Bigger Plan Becomes Clear 

Driver shortages have plagued the trucking industry for years. Labor costs keep rising. PepsiCo is building a system that reduces dependence on both while improving performance.

You watch a consumer goods company invest in autonomous vehicles for years and then scale it nationally, and the strategic intent is clear. PepsiCo is future-proofing the one thing its entire business depends on: getting products from factory to shelf faster and more reliably than anyone else.

Leslie's [LESL] $8.18 (+59.45%)

Leslie's just reported Q2 comp sales up 6.6%, customer count up 8%, and the turnaround is holding. The stock was under $1.50 in late April. In a session where tech is getting sold, and capital is hunting for real recovery stories, Leslie's pool supply chain showed up with one. The market noticed.

Nuvalent [NUVL] $123.22 (+39.25%)

GSK agreed to acquire Nuvalent for up to $10 billion, covering two late-stage lung cancer assets under FDA review with 2026 approval target dates. Bernstein had already called NUVL their top pick and compared it to Tagrisso. The deal validates the pipeline and puts a very hard floor under a company that earned it.

Alignment Healthcare [ALHC] $19.20 (+25.08%)

Alignment Healthcare runs value-based Medicare Advantage plans with 100% of members in 4-star or higher plans, recent CEO insider buying, and a Fortune 1000 debut. Today it is catching the healthcare defensive rotation as tech money needs somewhere to land. The fundamentals were already there. Tuesday's market just started paying attention to them.

Perma-Pipe International [PPIH] $25.27 (-19.19%)

Perma-Pipe makes pre-insulated piping for district energy and AI data center cooling infrastructure, and today is giving back recent gains as the session rotates into staples and healthcare rather than industrial infrastructure names. No fresh negative catalyst. Right company, wrong sector label for today's trade.

Applied Optoelectronics [AAOI] $162.31 (-17.46%)

Applied Optoelectronics makes optical transceivers for AI data centers and announced an at-the-market equity offering that sent dilution fears racing through a stock already trading well above analyst price targets.

The ATM offering is funding the expansion of its 800G and 1.6T transceiver capacity, which is a reasonable business decision. But the stock had just run from $15 to over $200 in a year. The ATM is the excuse the exits were waiting for.

Redwire Corporation [RDW] $15.75 (-15.19%)

Redwire is giving back gains from its enormous May run, during which the stock roughly tripled on Pentagon drone contracts and SpaceX IPO sector enthusiasm. No fresh negative catalyst today.

The company still has Army and NATO drone deals, UK Ministry of Defence expansion talks, and Roll-Out Solar Array programs for NASA. But momentum names go both ways, and today the direction is down.

On January 7, I met with a man tied to oil deals, intelligence circles, and government insiders.

What he told me changed how I see the Iran conflict.

He says the strikes and chaos may be part of something much bigger.

Click here to see the full breakdown before this story develops further.

That's it for today! Please, write us back, and let us know what you think of the Closing Bell Roundup. We're always eager to hear feedback!

Thanks for reading. I'll see you at the next open! 

Best Regards,
— Adam G.
Elite Trade Club

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