Carmignac Gestion Grows Stake in NVIDIA Corporation $NVDA

Key Points

• Carmignac Gestion increased its NVIDIA stake by 25.3% in the first quarter to 4.57 million shares valued at approximately $796 million, making NVDA its largest portfolio holding at 12.2%.
• NVIDIA continues to benefit from strong AI infrastructure demand, including robust orders for current and older GPUs, bullish analyst expectations, and a $240 million IBM–Together AI contract for an NVIDIA-powered inference cluster.
• Financing and valuation risks remain key concerns: Critics cite potential circular financing, GPU depreciation and oversupply risks, while investors await late-August earnings for evidence of sustainable growth. Insiders sold about $410.6 million of stock over the past three months.

Carmignac Gestion boosted its position in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 25.3% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 4,566,444 shares of the computer hardware maker's stock after purchasing an additional 921,338 shares during the quarter. NVIDIA makes up 12.2% of Carmignac Gestion's portfolio, making the stock its biggest position. Carmignac Gestion's holdings in NVIDIA were worth $796,005,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also added to or reduced their stakes in the company. Lifetime Wealth Management P.C. bought a new stake in NVIDIA during the fourth quarter worth about $26,000. Longview Financial Advisors Inc. purchased a new stake in NVIDIA in the first quarter worth about $27,000. Longfellow Investment Management Co. LLC increased its stake in shares of NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock valued at $33,000 after purchasing an additional 67 shares in the last quarter. Phillip James Consulting Co. bought a new position in shares of NVIDIA during the first quarter valued at approximately $40,000. Finally, Spurstone Advisory Services LLC purchased a new position in shares of NVIDIA during the second quarter valued at approximately $40,000. Hedge funds and other institutional investors own 65.27% of the company's stock.

Insider Buying and Selling at NVIDIA

In related news, Director Mark A. Stevens sold 885,000 shares of the firm's 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 trade represents a 14.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director John Dabiri sold 625 shares of the firm's stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total transaction of $133,750.00. Following the completion of the transaction, the director directly owned 14,163 shares in the company, valued at approximately $3,030,882. The trade was a 4.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,901,125 shares of company stock worth $410,583,015 in the last three months. 3.94% of the stock is currently owned by company insiders.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: $500 billion financing push reduces funding constraints: Bank of America said the initiative could ease financing risk by shifting much of the capital burden to Wall Street. The plan may make it easier for cloud providers and other customers to purchase NVIDIA hardware, networking products, and software, potentially extending the company’s revenue runway. BofA Says Nvidia’s $500 Billion Plan Eases Financing Risk
• Positive Sentiment: Continued demand for current and older GPUs: Susquehanna expects a continued GB300 ramp ahead of NVIDIA’s Vera Rubin platform release. Separately, CoreWeave’s CEO said the company is booking NVIDIA A100 systems through 2029 at full pricing, challenging concerns that older GPUs will rapidly lose value. Nvidia likely to see continued GB300 ramp ahead of Vera Rubin release
• Positive Sentiment: Analysts remain bullish: Recent coverage includes rating upgrades and price-target increases, with Wells Fargo maintaining an overweight rating and a $315 target. The positive views reflect expectations for sustained AI infrastructure spending and NVIDIA’s end-to-end hardware, networking, and software advantage. SA analyst upgrades and downgrades
• Positive Sentiment: Broader AI ecosystem momentum: IBM and Together AI agreed to a $240 million multiyear contract for an NVIDIA-powered inference cluster, while NVIDIA’s open-weight model efforts could strengthen its software ecosystem and CUDA platform. IBM and Together AI ink $240 million deal
• Negative Sentiment: Financing risks remain a key overhang: Critics question whether the arrangement amounts to circular financing because NVIDIA may provide residual-value support of up to 25% on some deals. Rapid GPU depreciation, potential oversupply, and lower-cost Chinese compute could weaken collateral values and expose NVIDIA to losses if customers struggle.
• Neutral Sentiment: Near-term test: Investors are likely to look to NVIDIA’s late-August earnings report for evidence that GB300 demand, expanding customer spending, and the financing strategy are translating into sustainable revenue and earnings growth.

NVIDIA Stock Up 3.0%

NVDA opened at $224.09 on Thursday. The stock has a market capitalization of $5.42 trillion, a price-to-earnings ratio of 34.32, a PEG ratio of 0.42 and a beta of 2.23. The firm has a 50 day moving average price of $205.61 and a 200-day moving average price of $198.06. NVIDIA Corporation has a twelve month low of $164.07 and a twelve month high of $236.54. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. During the same period last year, the business posted $0.81 EPS. The company's revenue for the quarter was up 85.2% on a year-over-year basis. Equities research analysts forecast that NVIDIA Corporation will post 8.79 earnings per share for the current year.

NVIDIA declared that its Board of Directors has authorized a stock buyback program on Wednesday, May 20th that allows the company to buyback $80.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to reacquire up to 1.5% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board of directors believes its stock is undervalued.

NVIDIA Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were given a $0.25 dividend. The ex-dividend date of this dividend was Thursday, June 4th. This is a positive change from NVIDIA's previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a yield of 0.4%. NVIDIA's payout ratio is 15.31%.

Wall Street Analyst Weigh In

NVDA has been the topic of a number of analyst reports. Rosenblatt Securities reissued a "buy" rating and issued a $325.00 price target on shares of NVIDIA in a research report on Thursday, May 21st. Seaport Research Partners raised their price objective on NVIDIA from $140.00 to $180.00 and gave the company a "sell" rating in a research report on Thursday, May 21st. DA Davidson reiterated a "buy" rating and set a $300.00 price objective on shares of NVIDIA in a research note on Monday, June 1st. HSBC reissued a "buy" rating and issued a $325.00 target price (up from $295.00) on shares of NVIDIA in a report on Tuesday, May 19th. Finally, Stifel Nicolaus set a $282.00 target price on NVIDIA and gave the stock a "buy" rating in a research note on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Buy" and an average target price of $305.94.

NVIDIA Company 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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