Avalon Trust Co Reduces Stake in NVIDIA Corporation $NVDA

Key Points

• Avalon Trust Co. reduced its NVIDIA stake by 1%, selling 7,633 shares and retaining 726,959 shares valued at approximately $126.8 million. NVIDIA remains the trust’s largest holding, representing 8.7% of its portfolio.
• NVIDIA reported strong quarterly results, with revenue rising 85.2% year over year to $81.61 billion and EPS of $1.87, beating analyst expectations. The company also authorized an $80 billion share buyback and increased its quarterly dividend to $0.25 per share.
• Despite broad analyst optimism and an average “Buy” rating, risks include substantial insider selling, concerns over vendor-backed AI financing and a potential OpenAI backstop, as well as export-control and regulatory scrutiny.

Avalon Trust Co trimmed its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 1.0% in the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 726,959 shares of the computer hardware maker's stock after selling 7,633 shares during the period. NVIDIA comprises approximately 8.7% of Avalon Trust Co's investment portfolio, making the stock its biggest position. Avalon Trust Co's holdings in NVIDIA were worth $126,782,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of the stock. Lifetime Wealth Management P.C. purchased a new position in NVIDIA during the 4th quarter valued at about $26,000. Longview Financial Advisors Inc. bought a new stake in NVIDIA in the first quarter worth $27,000. Longfellow Investment Management Co. LLC increased its holdings in shares of NVIDIA by 47.9% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock valued at $33,000 after acquiring an additional 67 shares during the last quarter. Spurstone Advisory Services LLC bought a new position in shares of NVIDIA in the second quarter valued at approximately $40,000. Finally, Inspire Investing LLC bought a new position in NVIDIA in the 4th quarter worth $44,000. 65.27% of the stock is currently owned by institutional investors and hedge funds.

NVIDIA Price Performance

NASDAQ:NVDA opened at $197.01 on Wednesday. NVIDIA Corporation has a 52-week low of $164.07 and a 52-week high of $236.54. The company has a market cap of $4.77 trillion, a P/E ratio of 30.17, a P/E/G ratio of 0.38 and a beta of 2.21. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The stock's 50-day simple moving average is $206.86 and its 200 day simple moving average is $195.98.

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 (EPS) for the quarter, beating the consensus estimate of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business had revenue of $81.61 billion during the quarter, compared to the consensus estimate of $78.42 billion. During the same period last year, the business posted $0.81 EPS. NVIDIA's revenue was up 85.2% on a year-over-year basis. As a group, sell-side analysts forecast that NVIDIA Corporation will post 8.79 EPS for the current fiscal year.

NVIDIA declared that its board has initiated a share buyback program on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to reacquire up to 1.5% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

NVIDIA Increases Dividend

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

Insider Buying and Selling at NVIDIA

In related news, Director Mark A. Stevens sold 885,000 shares of the business's stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the sale, the director owned 5,207,271 shares in the company, valued at $1,094,412,146.07. The trade was a 14.53% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, 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 transaction of $3,343,815.00. Following the transaction, the director directly owned 116,135 shares of the company's stock, valued at $25,053,803.55. The trade was a 11.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,901,125 shares of company stock valued at $410,583,015 in the last ninety days. 3.94% of the stock is currently owned by company insiders.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: CEO Jensen Huang is emphasizing robotics and “physical AI” as the next major growth market, spanning autonomous machines, vehicles, factories and data centers. The company’s expanded Agent Toolkit, PhysicsNeMo and CUDA-X libraries are also being adopted by Cadence, Siemens, Synopsys, Samsung and Silvaco, supporting a broader software-and-platform ecosystem beyond GPU sales. NVIDIA robotics growth article
• Positive Sentiment: New strategic relationships with Safe Superintelligence, OpenAI, NAVER and other infrastructure partners could increase demand for NVIDIA’s Vera Rubin and Blackwell systems. Analysts remain broadly bullish, with reported price targets well above current trading levels. NVIDIA Safe Superintelligence investment article
• Neutral Sentiment: NVIDIA is reportedly discussing a potential backstop of up to $250 billion for OpenAI’s Ohio data-center project, alongside a much larger overall infrastructure plan. The arrangement could lock in substantial future chip demand, but it would also expand NVIDIA’s role from supplier to financier and expose it to OpenAI’s creditworthiness and project-execution risks. NVIDIA OpenAI financing article
• Negative Sentiment: Investors remain concerned that vendor-backed AI infrastructure spending represents circular financing rather than organic customer demand. Reports that NVIDIA could guarantee OpenAI-related obligations helped trigger a broad chip-stock selloff, while rising default-insurance costs have intensified balance-sheet concerns. NVIDIA default insurance costs article
• Negative Sentiment: Taiwanese authorities reportedly detained an NVIDIA employee in a probe involving alleged diversion of Super Micro AI servers to China. Although no wrongdoing by NVIDIA has been established, the investigation raises additional export-control, legal and reputational risks. Intensifying Chinese competition and weakness across Asian chip stocks are adding pressure to the sector. Taiwan NVIDIA employee investigation article

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. Itau BBA Securities reduced their price target on shares of NVIDIA from $256.00 to $218.00 in a report on Wednesday, June 24th. Raymond James Financial restated a "strong-buy" rating and issued a $330.00 target price on shares of NVIDIA in a research note on Thursday, May 21st. Craig Hallum raised their price target on NVIDIA from $245.00 to $275.00 and gave the company a "buy" rating in a report on Thursday, May 21st. JPMorgan Chase & Co. upped their target price on shares of NVIDIA from $265.00 to $280.00 and gave the stock an "overweight" rating in a research report on Thursday, May 21st. Finally, Wells Fargo & Company reiterated an "overweight" rating and issued a $315.00 price target (up from $265.00) on shares of NVIDIA in a report on Tuesday, May 12th. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, NVIDIA currently has an average rating of "Buy" and an average target price of $304.26.

NVIDIA Company 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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