BDFS Capital LLC Invests $1.91 Million in NVIDIA Corporation $NVDA

Key Points

• BDFS Capital LLC opened a new position in NVIDIA in the fourth quarter, buying 10,255 shares worth about $1.91 million. The stake makes NVIDIA the fund’s 16th-largest holding.
• NVIDIA’s latest results were strong, with EPS of $1.87 and revenue of $81.61 billion, both above estimates. Quarterly revenue jumped 85.2% year over year.
• The company boosted shareholder returns by authorizing an $80 billion share repurchase plan and raising its quarterly dividend to $0.25 per share, up from $0.01.

BDFS Capital LLC purchased a new stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 10,255 shares of the computer hardware maker's stock, valued at approximately $1,913,000. NVIDIA makes up 1.0% of BDFS Capital LLC's holdings, making the stock its 16th largest position.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in NVDA. Joule Financial LLC raised its stake in NVIDIA by 2.2% in the third quarter. Joule Financial LLC now owns 2,308 shares of the computer hardware maker's stock valued at $431,000 after purchasing an additional 50 shares in the last quarter. Presidio Capital Management LLC grew its stake in NVIDIA by 0.4% during the fourth quarter. Presidio Capital Management LLC now owns 15,137 shares of the computer hardware maker's stock worth $2,823,000 after buying an additional 53 shares in the last quarter. LMG Wealth Partners LLC grew its stake in NVIDIA by 0.7% during the fourth quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker's stock worth $1,427,000 after buying an additional 53 shares in the last quarter. Vision Financial Markets LLC increased its holdings in NVIDIA by 1.2% in the 3rd quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker's stock valued at $866,000 after buying an additional 53 shares during the period. Finally, IMG Wealth Management Inc. increased its holdings in NVIDIA by 1.4% in the 3rd quarter. IMG Wealth Management Inc. now owns 3,820 shares of the computer hardware maker's stock valued at $713,000 after buying an additional 54 shares during the period. 65.27% of the stock is owned by institutional investors and hedge funds.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Jensen Huang’s latest comments were interpreted as a sign that demand for NVIDIA’s AI hardware remains strong, reinforcing the view that the company still has room to grow from the AI buildout. 13 Words From Jensen Huang That Spell Good News for Nvidia Shareholders
• Positive Sentiment: Multiple reports highlighted NVIDIA’s expanding AI ecosystem, including XR AI/public beta, physical AI, and new partnerships, which supports the case that NVIDIA is moving beyond data centers into additional growth markets. How NVIDIA (NVDA) Is Extending Its AI Infrastructure Reach Into XR and Physical AI
• Positive Sentiment: NVIDIA was said to have taken the No. 1 spot in data-center Ethernet switching by revenue in Q1, underscoring that its networking business is becoming a more meaningful part of the AI stack. Nvidia takes No. 1 spot in data center ethernet switching by revenue in Q1: IDC
• Positive Sentiment: Analysts and market commentary continued to point to NVIDIA as a leading AI beneficiary versus weaker chip names, with several pieces framing it as a core alternative in the ongoing semiconductor rally. Analyst Warns Intel Valuation ‘Doesn't Make Sense.' Suggests NVIDIA, AMD, Micron, and Broadcom as Alternatives.
• Neutral Sentiment: Several articles noted that AI spending is broadening to suppliers, cloud providers, and custom-chip rivals, suggesting NVIDIA’s dominance is being challenged but not yet displaced. Google Is Using Nvidia's Playbook to Build a Rival AI Chip Business
• Negative Sentiment: There were also warning signs for investors, including commentary that NVIDIA has slipped since its last earnings report and concerns that heavy AI infrastructure spending, debt financing, and competition from Amazon and Google could pressure long-term margins or growth rates. Nvidia (NVDA) Down 4% Since Last Earnings Report: Can It Rebound?

NVIDIA Price Performance

NVDA stock opened at $210.69 on Friday. The stock has a market cap of $5.10 trillion, a price-to-earnings ratio of 32.26, a P/E/G ratio of 0.47 and a beta of 2.22. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The company has a 50 day simple moving average of $209.90 and a 200 day simple moving average of $192.38. NVIDIA Corporation has a 1 year low of $142.03 and a 1 year high of $236.54.

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, beating analysts' consensus estimates of $1.76 by $0.11. The firm had revenue of $81.61 billion for the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company's quarterly revenue was up 85.2% on a year-over-year basis. During the same quarter last year, the business posted $0.81 earnings per share. Research analysts anticipate that NVIDIA Corporation will post 8.65 EPS for the current fiscal year.

NVIDIA declared that its Board of Directors has initiated a share repurchase plan on Wednesday, May 20th that allows the company to repurchase $80.00 billion in shares. This repurchase authorization allows the computer hardware maker to buy up to 1.5% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board of directors believes its shares are undervalued.

NVIDIA Increases Dividend

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

Insider Activity at NVIDIA

In related news, Director Stephen C. Neal sold 15,500 shares of the business's stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the sale, the director owned 116,135 shares in the company, valued at $25,053,803.55. The trade was a 11.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Mark A. Stevens sold 500,000 shares of the company's stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $219.83, for a total value of $109,915,000.00. Following the completion of the transaction, the director directly owned 6,399,771 shares of the company's stock, valued at approximately $1,406,861,658.93. The trade was a 7.25% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,016,125 shares of company stock valued at $224,582,565 in the last 90 days. 3.94% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

NVDA has been the subject of a number of recent analyst reports. Oppenheimer reaffirmed an "outperform" rating and set a $265.00 price target on shares of NVIDIA in a report on Thursday, February 26th. Tigress Financial reissued a "strong-buy" rating and issued a $425.00 price objective (up from $360.00) on shares of NVIDIA in a research note on Wednesday, May 27th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $255.00 price objective (up from $220.00) on shares of NVIDIA in a research report on Thursday, May 21st. Wedbush upped their target price on NVIDIA from $300.00 to $330.00 and gave the stock an "outperform" rating in a research note on Thursday, May 21st. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of NVIDIA in a report on Friday, April 10th. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Buy" and a consensus price target of $305.67.

About NVIDIA

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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