Abacus FCF Advisors LLC Cuts Stock Holdings in NVIDIA Corporation $NVDA

Key Points

• Abacus FCF Advisors reduced its NVIDIA stake by 6%, selling 7,472 shares and retaining 117,320 shares worth approximately $23.5 million. NVIDIA remains the firm’s second-largest holding, while institutional investors collectively own 65.27% of the company.
• NVIDIA reported strong quarterly results, with revenue up 105.9% year over year and EPS of $2.22 versus the $2.09 consensus estimate. Analysts remain broadly bullish, with a consensus “Buy” rating and an average price target of $320.71, supported by a newly authorized $150 billion share-buyback program.
• Despite the positive outlook, insider selling and regulatory risks remain notable: insiders sold 1.77 million shares worth roughly $399.5 million last quarter, while export controls, potential AI-chip financing arrangements and competition from internally developed chips could pressure NVIDIA’s valuation.

Abacus FCF Advisors LLC lessened its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 6.0% in the second quarter, according to its most recent filing with the SEC. The firm owned 117,320 shares of the computer hardware maker's stock after selling 7,472 shares during the quarter. NVIDIA comprises approximately 4.3% of Abacus FCF Advisors LLC's holdings, making the stock its 2nd largest position. Abacus FCF Advisors LLC's holdings in NVIDIA were worth $23,475,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently modified their holdings of the business. United Bank boosted its holdings in shares of NVIDIA by 0.3% in the second quarter. United Bank now owns 66,223 shares of the computer hardware maker's stock valued at $13,251,000 after acquiring an additional 214 shares in the last quarter. Trivest Advisors Ltd boosted its stake in NVIDIA by 23.4% during the 2nd quarter. Trivest Advisors Ltd now owns 444,160 shares of the computer hardware maker's stock valued at $88,872,000 after purchasing an additional 84,160 shares in the last quarter. Uptick Partners LLC boosted its stake in NVIDIA by 8.8% during the 2nd quarter. Uptick Partners LLC now owns 23,634 shares of the computer hardware maker's stock valued at $4,729,000 after purchasing an additional 1,903 shares in the last quarter. Madison Asset Management LLC lifted its holdings in shares of NVIDIA by 9.0% in the second quarter. Madison Asset Management LLC now owns 27,969 shares of the computer hardware maker's stock valued at $5,596,000 after buying an additional 2,298 shares during the period. Finally, Csenge Advisory Group raised its position in NVIDIA by 4.1% in the second quarter. Csenge Advisory Group now owns 121,296 shares of the computer hardware maker's stock worth $24,270,000 after acquiring an additional 4,794 shares in the last quarter. Institutional investors own 65.27% of the company's stock.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Morgan Stanley named NVIDIA its top semiconductor pick, maintaining an Overweight rating and setting a $300 price target. The firm believes NVIDIA’s software ecosystem, scale and positioning across AI infrastructure trends give it a durable competitive moat. Morgan Stanley names NVIDIA a top pick
• Positive Sentiment: NVIDIA’s recently announced $150 billion buyback authorization lifts total remaining repurchase capacity to approximately $235 billion. Investors view the plan as a sign of management confidence and a potential source of per-share earnings support. NVIDIA buyback analysis
• Positive Sentiment: Analysts continue to raise expectations for hyperscaler spending, with Barclays estimating NVIDIA could generate $401 billion in hyperscaler revenue in 2027. CoreWeave’s launch of the Vera Rubin platform and additional enterprise customers also supports demand for NVIDIA’s next-generation systems. Barclays hyperscaler revenue estimate
• Neutral Sentiment: The broader semiconductor and technology complex is attracting buying interest as AI investment remains a major market leadership theme. However, NVIDIA’s valuation and substantial market concentration leave the stock sensitive to interest rates, economic data and shifts in institutional positioning.
• Negative Sentiment: Investors are monitoring reports that Amazon may move roughly $8 billion of NVIDIA chips off its balance sheet through leasing or financing structures. While this could improve customer flexibility, it adds scrutiny around AI infrastructure financing and so-called circular transactions. Amazon NVIDIA chip balance-sheet report
• Negative Sentiment: Export-control concerns remain a headline risk after prosecutors alleged a California man helped smuggle approximately $300 million of NVIDIA chips to China. Separately, Michael Burry warned that GPU depreciation could undermine the economics of the AI infrastructure boom, while Alphabet’s growing use of internally designed chips represents a longer-term competitive threat. NVIDIA chip smuggling prosecution

Insider Buying and Selling at NVIDIA

In other NVIDIA news, Director Mark Stevens sold 622,239 shares of NVIDIA stock in a transaction on Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the completion of the sale, the director owned 2,336,531 shares of the company's stock, valued at $541,187,310.22. This trade represents a 21.03% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Timothy Teter sold 30,460 shares of the company's stock in a transaction on Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the completion of the transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at $598,810,648. This trade represents a 1.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,766,118 shares of company stock valued at $399,450,353 in the last quarter. Company insiders own 3.94% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on NVDA shares. Benchmark reaffirmed a "buy" rating and issued a $335.00 price objective on shares of NVIDIA in a research note on Thursday, August 27th. DZ Bank reaffirmed a "buy" rating on shares of NVIDIA in a report on Wednesday, August 26th. Morgan Stanley set a $230.00 price objective on NVIDIA in a research report on Friday. TD Cowen reissued a "buy" rating on shares of NVIDIA in a research note on Tuesday, August 18th. Finally, Rothschild & Co Redburn lifted their target price on NVIDIA from $300.00 to $325.00 in a report on Thursday, August 27th. Four analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, NVIDIA currently has a consensus rating of "Buy" and a consensus price target of $320.71.

NVIDIA Price Performance

Shares of NASDAQ:NVDA opened at $233.95 on Friday. NVIDIA Corporation has a 12-month low of $164.27 and a 12-month high of $237.88. The company has a market cap of $5.64 trillion, a P/E ratio of 29.58, a price-to-earnings-growth ratio of 1.81 and a beta of 2.22. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The company's fifty day moving average is $218.74 and its two-hundred day moving average is $207.48.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.13. The company had revenue of $96.22 billion for the quarter, compared to analysts' expectations of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The business's revenue for the quarter was up 105.9% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.05 EPS. Equities analysts expect that NVIDIA Corporation will post 9.25 earnings per share for the current fiscal year.

NVIDIA declared that its Board of Directors has approved a stock buyback program on Monday, September 28th that allows the company to buyback $150.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

NVIDIA Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were given a $0.25 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. NVIDIA's dividend payout ratio is presently 12.64%.

NVIDIA Profile

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company's products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

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