Capital Investment Services of America Inc. Has $63.08 Million Stake in NVIDIA Corporation $NVDA

Key Points

• Capital Investment Services of America reduced its NVIDIA position by 5.3% in the second quarter, selling 17,769 shares. It still held 315,255 shares valued at approximately $63.08 million, representing 6.2% of its portfolio.
• NVIDIA reported quarterly earnings of $2.22 per share and revenue of $96.22 billion, exceeding analyst estimates; revenue increased 105.9% year over year. The company also maintains an $80 billion share-repurchase authorization and announced a quarterly dividend of $0.25 per share.
• Analyst sentiment remains strongly positive, with a consensus “Buy” rating and an average price target of $324.34. However, substantial insider selling, valuation concerns and potential regulatory scrutiny present risks for investors.

Capital Investment Services of America Inc. trimmed its position in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 5.3% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 315,255 shares of the computer hardware maker's stock after selling 17,769 shares during the period. NVIDIA accounts for 6.2% of Capital Investment Services of America Inc.'s investment portfolio, making the stock its biggest position. Capital Investment Services of America Inc.'s holdings in NVIDIA were worth $63,079,000 at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. State Street Corp lifted its stake in NVIDIA by 1.2% in the fourth quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker's stock worth $184,911,111,000 after acquiring an additional 11,451,386 shares during the period. Geode Capital Management LLC lifted its position in shares of NVIDIA by 0.6% in the 4th quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker's stock worth $109,446,217,000 after purchasing an additional 3,383,441 shares during the period. Norges Bank bought a new stake in shares of NVIDIA during the 4th quarter valued at about $62,244,133,000. Bank of America Corp DE increased its position in shares of NVIDIA by 2.1% during the first quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker's stock valued at $33,345,453,000 after buying an additional 4,019,505 shares during the period. Finally, Legal & General Group Plc increased its position in shares of NVIDIA by 1.5% during the third quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker's stock valued at $33,808,862,000 after buying an additional 2,609,560 shares during the period. Institutional investors own 65.27% of the company's stock.

NVIDIA Price Performance

NASDAQ NVDA opened at $218.29 on Friday. NVIDIA Corporation has a 12 month low of $164.27 and a 12 month high of $236.54. The stock has a market cap of $5.26 trillion, a price-to-earnings ratio of 27.60, a PEG ratio of 1.71 and a beta of 2.22. The company's 50 day moving average is $213.29 and its two-hundred day moving average is $203.33. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping analysts' consensus estimates of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. During the same period in the prior year, the business posted $1.05 earnings per share. The company's revenue was up 105.9% on a year-over-year basis. As a group, research analysts anticipate that NVIDIA Corporation will post 9.12 earnings per share for the current year.

NVIDIA Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be paid a $0.25 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA's dividend payout ratio is 12.64%.

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

Analysts Set New Price Targets

Several analysts have commented on the stock. JPMorgan Chase & Co. raised their price objective on shares of NVIDIA from $280.00 to $320.00 and gave the stock an "overweight" rating in a report on Thursday, August 27th. Robert W. Baird set a $500.00 target price on NVIDIA and gave the stock an "outperform" rating in a report on Thursday, May 21st. New Street Research decreased their target price on NVIDIA from $343.00 to $340.00 in a research report on Thursday, May 21st. HSBC lifted their price target on NVIDIA from $360.00 to $365.00 in a research report on Thursday, August 27th. Finally, Wall Street Zen raised NVIDIA from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 29th. Three research analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Buy" and a consensus target price of $324.34.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Analyst upgrade and growth outlook: Piper Sandler upgraded NVIDIA to “strong buy,” while CEO Jensen Huang reiterated expectations for roughly 70% revenue growth next year and a potential $3 trillion–$4 trillion AI market by 2030. Erste Group also raised its FY2027 EPS estimate to $9.23 from $9.00. NVIDIA analyst upgrade Jensen Huang growth outlook
• Positive Sentiment: Evidence of sustained chip demand: TSMC reported August revenue growth of 53.3% year over year, signaling continued orders for AI accelerators and advanced packaging. The data supports NVIDIA’s view that hyperscaler and enterprise AI infrastructure spending remains strong. TSMC August revenue
• Positive Sentiment: Infrastructure expansion and partnerships: NVIDIA is working with Australian cloud and data-center companies on up to 2 gigawatts of AI-factory capacity by 2027. Its collaborations with Palantir on sovereign AI supply chains and d-Matrix on chip-linking technology further expand the CUDA-based ecosystem and potential future demand. NVIDIA Australia AI infrastructure d-Matrix partnership
• Neutral Sentiment: Valuation remains the central debate: Investors are weighing NVIDIA’s exceptional growth, profitability and AI leadership against a very high market capitalization and the possibility that optimistic forecasts are already reflected in the stock. Analysts continue to compare NVIDIA with Broadcom and AMD as custom silicon competition develops. NVIDIA valuation debate
• Negative Sentiment: Regulatory and sentiment risks: The Justice Department is reportedly examining NVIDIA’s licensing arrangement with Groq for possible antitrust concerns. In addition, insiders have reported substantial selling with no purchases in the past six months, while higher oil prices and Treasury yields have pressured high-growth technology shares. DOJ Groq investigation NVIDIA insider sales

Insider Buying and Selling at NVIDIA

In other news, EVP Timothy S. Teter sold 30,000 shares of the stock in a transaction on Monday, August 31st. The stock was sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the transaction, the executive vice president owned 2,687,660 shares of the company's stock, valued at approximately $585,587,360.80. This represents a 1.10% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of the firm's stock in a transaction 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 in the company, valued at approximately $1,094,412,146.07. This represents a 14.53% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 2,585,740 shares of company stock worth $571,015,527 over the last 90 days. 3.94% of the stock is currently owned by company insiders.

About NVIDIA

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company's offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.

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