Capelight Capital Asset Management LP Makes New Investment in NVIDIA Corporation $NVDA

Key Points

• Capelight Capital Asset Management opened a new position in NVIDIA during the first quarter, buying 33,000 shares worth about $5.76 million. The stake makes NVDA its 10th largest holding and 4.1% of its portfolio.
• NVIDIA posted strong quarterly results, with EPS of $1.87 beating estimates and revenue of $81.61 billion topping expectations, up 85.2% year over year. The company also authorized an $80 billion share buyback and raised its quarterly dividend to $0.25 from $0.01.
• Analysts remain bullish overall, with a consensus Buy rating and average price target of $303.84. However, the article also notes recent insider selling and ongoing investor focus on AI demand, supply-chain expansion, and competition from in-house chips.

Capelight Capital Asset Management LP acquired a new stake in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund acquired 33,000 shares of the computer hardware maker's stock, valued at approximately $5,755,000. NVIDIA comprises 4.1% of Capelight Capital Asset Management LP's portfolio, making the stock its 10th largest holding.

Several other hedge funds and other institutional investors have also made changes to their positions in NVDA. Lifetime Wealth Management P.C. bought a new stake in NVIDIA in the fourth quarter worth about $26,000. Longview Financial Advisors Inc. purchased a new stake in shares of NVIDIA in the first quarter worth approximately $27,000. Longfellow Investment Management Co. LLC lifted its stake 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 worth $33,000 after acquiring an additional 67 shares during the last quarter. Spurstone Advisory Services LLC purchased a new position in NVIDIA during the 2nd quarter valued at $40,000. Finally, Inspire Investing LLC purchased a new position in NVIDIA during the 4th quarter valued at $44,000. Hedge funds and other institutional investors own 65.27% of the company's stock.

NVIDIA Stock Performance

Shares of NVDA stock opened at $210.96 on Monday. The business has a fifty day moving average of $209.48 and a 200 day moving average of $194.49. NVIDIA Corporation has a 1 year low of $162.02 and a 1 year high of $236.54. 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 firm has a market capitalization of $5.11 trillion, a price-to-earnings ratio of 32.31, a price-to-earnings-growth ratio of 0.46 and a beta of 2.21.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its quarterly earnings data 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. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.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 earned $0.81 earnings per share. The company's revenue was up 85.2% on a year-over-year basis. As a group, research analysts expect that NVIDIA Corporation will post 8.8 earnings per share for the current year.

NVIDIA declared that its Board of Directors has authorized a stock buyback 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 reacquire up to 1.5% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's leadership believes its shares are undervalued.

NVIDIA Increases Dividend

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

Insiders Place Their Bets

In related news, Director Stephen C. Neal sold 15,500 shares of the firm'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 of the company's stock, valued at $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the transaction, the director owned 5,207,271 shares of the company's stock, valued at approximately $1,094,412,146.07. This represents a 14.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 1,901,125 shares of company stock valued at $410,583,015. 3.94% of the stock is owned by insiders.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Analysts and commentators said NVDA’s lower valuation and dominant position in AI spending could make recent weakness a buying opportunity, with Bank of America and others highlighting strong long-term upside.
• Positive Sentiment: Reuters reported that Nvidia supplier King Yuan Electronics plans to invest up to $1.4 billion in a U.S. facility, reinforcing the scale of the AI hardware supply chain and ongoing buildout around NVIDIA. Article Title
• Positive Sentiment: NVIDIA also announced a partnership with Fervo to launch an EGS-Twin geothermal platform, adding another AI-related ecosystem collaboration that investors may view as supportive of future growth. Article Title
• Positive Sentiment: Coverage around Nvidia’s strong Q1 results and the company’s upbeat revenue guidance near $91 billion for the next quarter continues to underline that AI demand is still running hot.
• Neutral Sentiment: Media and trading activity around NVDA remains elevated, including options-flow commentary, “most watched” stock chatter, and repeated articles on its AI leadership, which can keep the shares volatile but do not change fundamentals on their own.
• Negative Sentiment: Some reports noted pressure from customers and competitors building in-house AI chips, and there was also discussion of a possible delay to NVIDIA’s next-gen Kyber rack-scale architecture, both of which could raise investor concerns about future margins and timing.

Wall Street Analyst Weigh In

A number of research firms have weighed in on NVDA. DA Davidson reiterated a "buy" rating and issued a $300.00 target price on shares of NVIDIA in a research note on Monday, June 1st. HSBC reissued a "buy" rating and set a $325.00 target price (up from $295.00) on shares of NVIDIA in a research note on Tuesday, May 19th. Argus increased their price objective on NVIDIA from $220.00 to $270.00 and gave the stock a "buy" rating in a research note on Thursday, May 21st. Weiss Ratings reiterated a "buy (b)" rating on shares of NVIDIA in a report on Wednesday. Finally, Barclays reaffirmed an "overweight" rating on shares of NVIDIA in a research report on Thursday, May 21st. Three 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. Based on data from MarketBeat, the company has a consensus rating of "Buy" and a consensus price target of $303.84.

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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