Clark Asset Management LLC Reduces Position in NVIDIA Corporation $NVDA

Key Points

• Clark Asset Management reduced its NVIDIA position by 7.7% in the second quarter, selling 3,536 shares and retaining 42,313 shares valued at approximately $8.5 million. NVIDIA represents 0.7% of the firm’s portfolio, while institutional investors collectively own 65.27% of the stock.
• NVIDIA reported quarterly EPS of $1.87 and revenue of $81.61 billion, exceeding analyst estimates, with revenue up 85.2% year over year. The company also authorized an $80 billion share-buyback plan and increased its quarterly dividend to $0.25 per share.
• Analysts remain broadly bullish, with a consensus “Buy” rating and a $305.94 price target, although elevated expectations, valuation risks, supply constraints and concerns about debt-funded AI infrastructure could increase volatility.

Clark Asset Management LLC decreased its holdings in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 7.7% during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 42,313 shares of the computer hardware maker's stock after selling 3,536 shares during the quarter. NVIDIA makes up 0.7% of Clark Asset Management LLC's portfolio, making the stock its 26th biggest position. Clark Asset Management LLC's holdings in NVIDIA were worth $8,466,000 as of its most recent SEC filing.

A number of other hedge funds have also recently bought and sold shares of the business. Norges Bank acquired a new stake in shares of NVIDIA during the fourth quarter worth approximately $62,244,133,000. J. Stern & Co. LLP raised its holdings in NVIDIA by 13,709.1% in the fourth quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker's stock valued at $23,454,297,000 after acquiring an additional 124,849,603 shares in the last quarter. Cardano Risk Management B.V. boosted its stake in NVIDIA by 896.4% during the 4th quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker's stock valued at $14,570,119,000 after acquiring an additional 70,283,539 shares during the last quarter. Capital Research Global Investors boosted its stake in NVIDIA by 16.1% during the 3rd quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker's stock valued at $30,855,564,000 after acquiring an additional 22,896,705 shares during the last quarter. Finally, Laurel Wealth Advisors LLC grew its holdings in NVIDIA by 15,496.1% during the 2nd quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker's stock worth $3,454,534,000 after acquiring an additional 21,725,326 shares in the last quarter. Institutional investors and hedge funds own 65.27% of the company's stock.

NVIDIA Price Performance

Shares of NVIDIA stock opened at $225.16 on Monday. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. The business's 50 day simple moving average is $206.14 and its 200-day simple moving average is $198.60. The stock has a market capitalization of $5.45 trillion, a price-to-earnings ratio of 34.48, a PEG ratio of 0.44 and a beta of 2.23. NVIDIA Corporation has a twelve month low of $164.07 and a twelve month high of $236.54.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.76 by $0.11. The business had revenue of $81.61 billion during the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The business's revenue for the quarter was up 85.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.81 EPS. Equities research analysts forecast that NVIDIA Corporation will post 8.79 earnings per share for the current year.

NVIDIA Increases Dividend

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

NVIDIA announced that its board has authorized a share buyback plan 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 shares through open market purchases. Shares buyback plans are usually an indication that the company's management believes its stock is undervalued.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: UBS expects another major earnings beat. The firm reiterated a Buy rating and $280 price target, forecasting that NVIDIA could exceed its fiscal second-quarter revenue outlook of $91 billion by several billion dollars as GB300 demand ramps ahead of the Vera Rubin platform. UBS earnings outlook
• Positive Sentiment: A proposed $500 billion financing initiative could expand customers’ purchasing capacity. Apollo, BlackRock, Brookfield, Goldman Sachs and other financial firms are discussing capital pools and securitized loans for AI data centers. The structure could support continued GPU deployments and create a secondary market for older NVIDIA systems. NVIDIA GPU financing deal
• Positive Sentiment: Demand catalysts continue to broaden. NVIDIA is promoting open-source AI tools, expanding into robotics and physical AI, partnering with former rival Groq, and deepening its networking and infrastructure business. A $2 billion investment in Marvell also highlights efforts to strengthen the broader AI supply chain. NVIDIA open-source AI strategy
• Neutral Sentiment: Market volatility appears driven more by liquidity than fundamentals. Asian market circuit breakers and currency-related selling pressured semiconductor shares, but the underlying hyperscaler data-center buildout and long-term AI infrastructure commitments remain intact. Asian market volatility and AI demand
• Negative Sentiment: Expectations and valuation leave little room for disappointment. Analysts note that NVIDIA’s strong pre-earnings performance has set a high bar, while critics—including Michael Burry—warn that AI financing may become circular if customers rely heavily on borrowed capital. Concerns also include power, labor and chip-supply bottlenecks, as well as the risk that Chinese developers optimize models for Huawei hardware instead of U.S. GPUs. AI infrastructure bottlenecks

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on NVDA shares. Stifel Nicolaus set a $282.00 target price on shares of NVIDIA and gave the stock a "buy" rating in a research report on Thursday, May 21st. Mizuho set a $300.00 price target on NVIDIA in a research note on Thursday, May 21st. Robert W. Baird set a $500.00 price target on NVIDIA and gave the stock an "outperform" rating in a research note on Thursday, May 21st. Susquehanna restated a "positive" rating and set a $275.00 price objective (up from $250.00) on shares of NVIDIA in a research note on Tuesday, May 12th. Finally, DZ Bank reaffirmed a "buy" rating on shares of NVIDIA in a report on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, NVIDIA presently has a consensus rating of "Buy" and a consensus price target of $305.94.

Insider Activity

In other news, Director Mark A. Stevens sold 885,000 shares of the company's stock in a transaction dated 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 completion of 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Stephen C. Neal sold 15,500 shares of the 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 completion of the sale, the director directly owned 116,135 shares in the company, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 1,901,125 shares of company stock valued at $410,583,015. 3.94% of the stock is currently owned by company insiders.

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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