Baugh & Associates LLC Takes $3.23 Million Position in NVIDIA Corporation $NVDA

Key Points

• Baugh & Associates LLC opened a new position in NVIDIA during the first quarter, buying 18,497 shares worth about $3.23 million.
• NVIDIA reported strong quarterly results, beating EPS and revenue estimates and posting 85.2% year-over-year revenue growth; it also authorized an $80 billion share buyback and raised its quarterly dividend to $0.25 per share.
• Despite the upbeat fundamentals and continued analyst support, NVIDIA faces some pressure from AI spending concerns, a broader semiconductor selloff, and legal risk after Reuters reported a lawsuit from music company Jamendo over AI training.

Baugh & Associates LLC purchased a new position in NVIDIA Corporation (NASDAQ:NVDA - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 18,497 shares of the computer hardware maker's stock, valued at approximately $3,226,000.

Other institutional investors also recently added to or reduced their stakes in the company. Brighton Jones LLC lifted its position in shares of NVIDIA by 12.4% during the fourth quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker's stock valued at $43,631,000 after buying an additional 35,815 shares during the last quarter. Bank Pictet & Cie Europe AG grew its position in shares of NVIDIA by 1.0% in the 4th quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker's stock worth $315,100,000 after buying an additional 22,929 shares during the last quarter. Highview Capital Management LLC DE grew its position in shares of NVIDIA by 6.7% in the 4th quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker's stock worth $7,842,000 after buying an additional 3,653 shares during the last quarter. Hudson Value Partners LLC raised its stake in shares of NVIDIA by 30.7% during the 4th quarter. Hudson Value Partners LLC now owns 50,658 shares of the computer hardware maker's stock worth $6,805,000 after acquiring an additional 11,900 shares in the last quarter. Finally, Wealth Group Ltd. raised its stake in shares of NVIDIA by 15.7% during the 1st quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker's stock worth $715,000 after acquiring an additional 896 shares in the last quarter. Institutional investors own 65.27% of the company's stock.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA continues to expand its AI ecosystem, including new BioNeMo and agentic AI tools for life sciences, which supports the long-term growth story. Nvidia launches BioNeMo agent toolkit for AI-driven life sciences research
• Positive Sentiment: Wall Street commentary remains constructive, with several analysts still calling NVDA a must-own AI leader despite the recent tech sell-off. NVIDIA (NVDA) Remains a Must-Own for Bernstein Despite Tech Sell-Off
• Neutral Sentiment: The latest earnings report was strong, with NVIDIA beating EPS and revenue estimates and posting very rapid year-over-year growth, providing a solid fundamental backdrop.
• Negative Sentiment: AI spending concerns and a memory-chip selloff are weighing on the entire semiconductor group, pressuring NVIDIA as investors question the pace of future demand. Lam Research, Qualcomm, and Western Digital Stocks Trade Down, What You Need To Know
• Negative Sentiment: Reuters reported that NVIDIA was sued by music company Jamendo over AI training, adding legal uncertainty and headline risk. Nvidia sued by music company Jamendo over AI training

Insider Buying and Selling

In related news, Director John Dabiri sold 625 shares of the business's stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the completion of the sale, the director owned 14,163 shares of the company's stock, valued at approximately $3,030,882. The trade was a 4.23% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of the 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 in the company, valued at approximately $25,053,803.55. The trade was a 11.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 1,901,125 shares of company stock valued at $410,583,015. 3.94% of the stock is owned by corporate insiders.

NVIDIA Stock Down 0.9%

NVDA opened at $198.32 on Thursday. The company has a fifty day moving average of $210.80 and a two-hundred day moving average of $192.91. The stock has a market capitalization of $4.80 trillion, a price-to-earnings ratio of 30.37, a PEG ratio of 0.45 and a beta of 2.22. NVIDIA Corporation has a fifty-two week low of $149.26 and a fifty-two week high of $236.54. 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 posted its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping 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 for the quarter, compared to analyst estimates of $78.42 billion. During the same period in the prior year, the company posted $0.81 EPS. The company's revenue for the quarter was up 85.2% on a year-over-year basis. On average, research analysts expect that NVIDIA Corporation will post 8.69 earnings per share for the current year.

NVIDIA declared that its board has approved a stock buyback plan on Wednesday, May 20th that permits the company to repurchase $80.00 billion in shares. This repurchase authorization permits the computer hardware maker to purchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board believes its shares are undervalued.

NVIDIA Increases Dividend

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

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the stock. UBS Group raised their target price on shares of NVIDIA from $275.00 to $280.00 and gave the company a "buy" rating in a research note on Thursday, May 21st. Daiwa Securities Group upped their price target on NVIDIA from $215.00 to $255.00 and gave the stock an "outperform" rating in a research report on Friday, May 22nd. Bank of America reiterated a "buy" rating and set a $350.00 price objective (up from $320.00) on shares of NVIDIA in a report on Thursday, May 21st. Sanford C. Bernstein reaffirmed a "buy" rating on shares of NVIDIA in a research report on Monday, June 8th. Finally, DA Davidson reissued a "buy" rating and set a $300.00 target price on shares of NVIDIA in a research report on Monday, June 1st. Three analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus price target of $305.67.

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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