Argent Capital Management LLC Trims Stake in NVIDIA Corporation $NVDA

Key Points

• Argent Capital Management cut its NVIDIA stake by 7.6% in the first quarter, selling 94,827 shares and retaining 1.15 million shares worth approximately $201.1 million. NVIDIA remains Argent’s second-largest holding, representing about 6.3% of its portfolio.
• NVIDIA reported a strong quarter, with revenue up 85.2% year over year to $81.61 billion and earnings of $1.87 per share, exceeding analyst expectations. The company also authorized an $80 billion share-repurchase program and raised its quarterly dividend to $0.25 per share.
• Despite some insider selling and concerns about customer concentration and AI-financing risks, analysts remain broadly positive: NVIDIA has a consensus “Buy” rating and an average price target of $304.26, compared with a reported share price of $217.55.

Argent Capital Management LLC lessened its position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 7.6% in the first quarter, according to its most recent filing with the SEC. The firm owned 1,153,010 shares of the computer hardware maker's stock after selling 94,827 shares during the quarter. NVIDIA makes up approximately 6.3% of Argent Capital Management LLC's investment portfolio, making the stock its 2nd largest holding. Argent Capital Management LLC's holdings in NVIDIA were worth $201,085,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in the company. State Street Corp boosted its position in NVIDIA by 1.2% during the fourth quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker's stock valued at $184,911,111,000 after acquiring an additional 11,451,386 shares during the last quarter. Geode Capital Management LLC grew its holdings in NVIDIA by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker's stock worth $109,446,217,000 after acquiring an additional 3,383,441 shares during the period. Norges Bank bought a new position in shares of NVIDIA in the 4th quarter worth about $62,244,133,000. Bank of America Corp DE raised its position in shares of NVIDIA by 2.1% in the 1st quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker's stock worth $33,345,453,000 after acquiring an additional 4,019,505 shares in the last quarter. Finally, Legal & General Group Plc lifted its stake in shares of NVIDIA by 1.5% in the 3rd quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker's stock valued at $33,808,862,000 after purchasing an additional 2,609,560 shares during the period. Institutional investors own 65.27% of the company's stock.

Insiders Place Their Bets

In other NVIDIA news, Director Stephen C. Neal sold 15,500 shares of the firm's stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total value of $3,343,815.00. Following the transaction, the director directly owned 116,135 shares of the company's stock, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director John Dabiri sold 625 shares of NVIDIA stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the transaction, the director owned 14,163 shares of the company's stock, valued at $3,030,882. This represents a 4.23% 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. Over the last 90 days, insiders have sold 1,901,125 shares of company stock worth $410,583,015. Insiders own 3.94% of the company's stock.

NVIDIA Trading Down 2.9%

Shares of NVIDIA stock opened at $217.55 on Tuesday. The stock has a market capitalization of $5.26 trillion, a PE ratio of 33.32, a price-to-earnings-growth ratio of 0.44 and a beta of 2.23. NVIDIA Corporation has a 52 week low of $164.07 and a 52 week high of $236.54. The stock has a 50 day moving average price of $205.53 and a two-hundred day moving average price of $197.54. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, topping analysts' consensus estimates of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company had revenue of $81.61 billion for the quarter, compared to analyst estimates of $78.42 billion. During the same period in the prior year, the firm earned $0.81 earnings per share. NVIDIA's revenue for the quarter was up 85.2% on a year-over-year basis. As a group, equities analysts anticipate that NVIDIA Corporation will post 8.79 earnings per share for the current fiscal year.

NVIDIA announced that its Board of Directors has approved a stock repurchase program on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to purchase up to 1.5% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

NVIDIA Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were issued a dividend of $0.25 per share. The ex-dividend date was Thursday, June 4th. This is a positive change from NVIDIA's previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA's dividend payout ratio is currently 15.31%.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA is reportedly partnering with Apollo Global Management, Blackstone, BlackRock’s Global Infrastructure Partners, Brookfield, Goldman Sachs and KKR on an AI infrastructure financing effort targeting up to $500 billion. The initiative could accelerate data-center construction and support future demand for NVIDIA’s GPUs. Nvidia teams up with Wall Street asset managers on $500 billion AI infrastructure push
• Positive Sentiment: Bank of America maintained a Buy rating and $350 price target, projecting second-quarter revenue of $94 billion to $95 billion—potentially $3 billion to $4 billion above NVIDIA’s guidance—and forecasting a “multi-quarter upgrade cycle.” BofA: Nvidia's next earnings report could kick off a multi-quarter upgrade cycle
• Positive Sentiment: Analysts remain constructive ahead of the August 26 earnings report, citing expected $91 billion of quarterly revenue, gross margins near 75%, strong Data Center demand and continued adoption of Blackwell systems. Nvidia: Buy Before Q2 Shows The AI Factory Trade Is Still Early
• Neutral Sentiment: NVIDIA is reportedly considering investing as much as $3 billion in Lancium, an AI data-center power infrastructure company. The investment could strengthen NVIDIA’s ecosystem position, but it also adds to questions about how much capital the chipmaker should devote to investments instead of share buybacks. Nvidia Stock Slips as Its AI Investments Draw Fresh Scrutiny
• Negative Sentiment: Investors are increasingly focused on NVIDIA’s expanding role in financing the AI buildout. Mark Cuban compared the strategy with dot-com-era companies that funded customers, raising concerns that financing could amplify concentration and credit risks if AI spending fails to generate adequate returns. Mark Cuban warned Nvidia's AI financing could crumble the market
• Negative Sentiment: Reports that Microsoft is reconsidering its reliance on NVIDIA in favor of internally developed AI silicon highlight a potential long-term customer-concentration and pricing risk, even though near-term demand remains robust. Microsoft rethinks its Nvidia reliance

Analyst Ratings Changes

Several brokerages recently commented on NVDA. Wolfe Research restated an "outperform" rating and set a $275.00 target price on shares of NVIDIA in a research report on Thursday, May 21st. DZ Bank reissued a "buy" rating on shares of NVIDIA in a research note on Thursday, May 21st. Melius Research set a $400.00 price target on NVIDIA in a report on Thursday, May 21st. Wall Street Zen downgraded shares of NVIDIA from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 4th. Finally, Evercore reaffirmed an "outperform" rating and set a $413.00 price objective (up from $352.00) on shares of NVIDIA in a research report on Thursday, May 21st. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, NVIDIA currently has a consensus rating of "Buy" and a consensus price target of $304.26.

NVIDIA Profile

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company's product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.

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