Cannon Advisors Inc. Sells 10,722 Shares of NVIDIA Corporation $NVDA

Key Points

• Cannon Advisors cut its NVIDIA stake by 31.5% in the second quarter, selling 10,722 shares and retaining 23,285 shares valued at approximately $4.93 million. NVIDIA remains about 3.1% of the fund’s portfolio.
• NVIDIA reported fiscal second-quarter revenue of $96.2 billion, up 106% year over year, while adjusted EPS of $2.22 exceeded expectations. Management guided to roughly $108 billion in fiscal third-quarter revenue and projected stronger-than-expected growth through fiscal 2028, driven by continued AI demand.
• Despite bullish analyst ratings and price-target increases, NVIDIA faces near-term risks including profit-taking, lower gross-margin expectations, supply constraints, export controls affecting China and a recent 4.6% stock decline.

Cannon Advisors Inc. cut its stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 31.5% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 23,285 shares of the computer hardware maker's stock after selling 10,722 shares during the period. NVIDIA comprises approximately 3.1% of Cannon Advisors Inc.'s portfolio, making the stock its 9th largest position. Cannon Advisors Inc.'s holdings in NVIDIA were worth $4,932,000 at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in the company. Defender Capital LLC. lifted its stake in NVIDIA by 0.7% in the second quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker's stock valued at $1,507,000 after buying an additional 50 shares during the last quarter. Spectrum Financial Alliance Ltd LLC grew its position in shares of NVIDIA by 3.8% during the first quarter. Spectrum Financial Alliance Ltd LLC now owns 1,395 shares of the computer hardware maker's stock worth $243,000 after acquiring an additional 51 shares during the last quarter. LMG Wealth Partners LLC increased its holdings in shares of NVIDIA by 0.7% in the 4th quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker's stock valued at $1,427,000 after acquiring an additional 53 shares during the period. Vision Financial Markets LLC increased its holdings in shares of 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 acquiring an additional 53 shares during the period. Finally, JGP Global Gestao de Recursos Ltda. raised its position in NVIDIA by 2.3% in the 4th quarter. JGP Global Gestao de Recursos Ltda. now owns 2,402 shares of the computer hardware maker's stock valued at $448,000 after purchasing an additional 55 shares during the last quarter. Hedge funds and other institutional investors own 65.27% of the company's stock.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA reported fiscal Q2 revenue of approximately $96.2 billion, up 106% year over year and ahead of Wall Street expectations. Data-center revenue rose 117% to $89 billion, while adjusted EPS of $2.22 also exceeded consensus. The results reinforced that hyperscaler AI spending remains robust. Nvidia rises after signaling longer AI spending runway
• Positive Sentiment: Management guided to roughly $108 billion in fiscal Q3 revenue and indicated that fiscal 2028 sales could grow about 70%, well above the roughly 45% growth analysts had modeled. The forecast has shifted the debate from whether AI demand is slowing to whether NVIDIA and its suppliers can build enough capacity. Nvidia's 70% growth forecast
• Positive Sentiment: Several analysts raised their NVIDIA price targets following the results, including Wedbush, Truist, RBC and JPMorgan. The upgrades reflect expectations for sustained Blackwell demand, the Vera Rubin product ramp and strong order visibility through fiscal 2028. Wedbush lifts Nvidia price target
• Neutral Sentiment: NVIDIA is reportedly pursuing a roughly $12.9 billion acquisition of open-source AI platform Hugging Face. The deal could expand NVIDIA’s software ecosystem and improve visibility into future AI workloads, but reports indicate terms may not be finalized and the valuation is high relative to Hugging Face’s revenue. Nvidia agrees to buy Hugging Face report
• Negative Sentiment: Investors are locking in gains after NVIDIA’s strong post-earnings rally. The stock’s elevated valuation and proximity to record levels make it vulnerable to short-term profit-taking even though fundamentals remain strong. Nvidia AMD Intel stocks slide as investors take profits
• Negative Sentiment: Gross-margin expectations are moving lower toward roughly 72%–73% as NVIDIA absorbs higher memory, packaging and infrastructure costs. Management also said supply constraints remain significant, potentially limiting how much demand can immediately translate into revenue and cash flow.
• Negative Sentiment: Broader market pressure is coming from a more hawkish Federal Reserve outlook, while NVIDIA’s decision to exclude China data-center compute revenue from its forecast underscores continuing export-control and geopolitical risks. Reports that the company paused some revenue-sharing arrangements with AI cloud providers also raise questions about financing and customer ROI. Nvidia pauses revenue-sharing deals

Wall Street Analyst Weigh In

Several brokerages have issued reports on NVDA. Wells Fargo & Company reissued an "overweight" rating and set a $315.00 price objective on shares of NVIDIA in a research report on Tuesday, August 11th. Barclays reiterated an "overweight" rating on shares of NVIDIA in a research note on Thursday, May 21st. Jefferies Financial Group reissued a "buy" rating and set a $300.00 price target (up from $275.00) on shares of NVIDIA in a report on Thursday, May 21st. TD Cowen reaffirmed a "buy" rating on shares of NVIDIA in a research note on Tuesday, August 18th. Finally, HSBC reaffirmed a "buy" rating and set a $325.00 price objective (up from $295.00) on shares of NVIDIA in a research report on Tuesday, May 19th. Two equities research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, NVIDIA currently has an average rating of "Moderate Buy" and a consensus price target of $322.61.

Insider Buying and Selling at NVIDIA

In other news, Director Mark A. Stevens sold 885,000 shares of the company's stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the transaction, the director directly owned 5,207,271 shares of the company's stock, valued at $1,094,412,146.07. This represents a 14.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Stephen C. Neal sold 15,500 shares of the business's stock in a transaction dated 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 directly owned 116,135 shares in the company, valued at approximately $25,053,803.55. This represents a 11.77% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 1,900,500 shares of company stock valued at $410,449,265 in the last quarter. 3.94% of the stock is currently owned by company insiders.

NVIDIA Trading Down 4.6%

NASDAQ NVDA opened at $217.55 on Friday. The company has a quick ratio of 2.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The stock has a market capitalization of $5.24 trillion, a P/E ratio of 27.50, a P/E/G ratio of 0.42 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 firm has a 50-day moving average price of $208.09 and a 200 day moving average price of $200.77.

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 (EPS) for the quarter, topping 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 firm's quarterly revenue was up 105.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.05 EPS. Equities research analysts expect that NVIDIA Corporation will post 9.1 EPS for the current year.

NVIDIA Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be given a $0.25 dividend. The ex-dividend date is Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA's dividend payout ratio is presently 15.31%.

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

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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This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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