DSM Capital Partners LLC Cuts Stock Position in NVIDIA Corporation $NVDA

Key Points

• DSM Capital Partners cut its NVIDIA position by 9.7%, selling 505,196 shares in the second quarter. Despite the reduction, NVIDIA remains the fund’s largest holding, representing 16.1% of its portfolio and valued at approximately $941 million.
• NVIDIA insiders have sold significant amounts of stock recently, including director Mark Stevens’s sale of 622,239 shares; insiders sold 1.74 million shares worth about $392.7 million over the past three months.
• NVIDIA reported stronger-than-expected quarterly results, with $2.22 in EPS and $96.22 billion in revenue, up 105.9% year over year. Analysts maintained a broadly bullish outlook, with a consensus “Buy” rating and an average price target of $324.34.

DSM Capital Partners LLC trimmed its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 9.7% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 4,702,822 shares of the computer hardware maker's stock after selling 505,196 shares during the period. NVIDIA comprises 16.1% of DSM Capital Partners LLC's holdings, making the stock its largest position. DSM Capital Partners LLC's holdings in NVIDIA were worth $940,988,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also modified their holdings of NVDA. Lifetime Wealth Management P.C. bought a new stake in NVIDIA during the fourth quarter worth $26,000. Longview Financial Advisors Inc. bought a new position in NVIDIA during the first quarter worth about $27,000. Phillip James Consulting Co. acquired a new position in NVIDIA during the first quarter worth approximately $40,000. Syntax Research Inc. increased its position in NVIDIA by 62.5% during the fourth quarter. Syntax Research Inc. now owns 260 shares of the computer hardware maker's stock worth $49,000 after buying an additional 100 shares during the last quarter. Finally, Frankly Finances LLC bought a new stake in NVIDIA in the second quarter valued at approximately $60,000. Institutional investors and hedge funds own 65.27% of the company's stock.

Insider Activity at NVIDIA

In related news, Director Mark Stevens sold 622,239 shares of the company's stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the completion of the transaction, the director directly owned 2,336,531 shares in the company, valued at $541,187,310.22. This represents a 21.03% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Timothy Teter sold 30,000 shares of the stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the completion of the transaction, the executive vice president directly owned 2,687,660 shares of the company's stock, valued at approximately $585,587,360.80. The trade was a 1.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 1,735,658 shares of company stock valued at $392,663,865. 3.94% of the stock is owned by insiders.

NVIDIA Stock Up 2.3%

Shares of NVDA opened at $227.38 on Tuesday. The firm has a 50 day simple moving average of $215.13 and a two-hundred day simple moving average of $204.77. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. NVIDIA Corporation has a one year low of $164.27 and a one year high of $236.54. The company has a market cap of $5.48 trillion, a P/E ratio of 28.75, a P/E/G ratio of 1.72 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating analysts' consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The firm had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. During the same quarter last year, the business posted $1.05 EPS. The company's revenue was up 105.9% compared to the same quarter last year. Research analysts forecast that NVIDIA Corporation will post 9.25 EPS for the current fiscal year.

NVIDIA Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be issued a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.4%. NVIDIA's payout ratio is 12.64%.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $400.00 price objective (up from $315.00) on shares of NVIDIA in a research report on Thursday, August 27th. Morgan Stanley set a $300.00 target price on shares of NVIDIA and gave the stock an "overweight" rating in a report on Thursday, August 27th. JPMorgan Chase & Co. upped their price target on shares of NVIDIA from $280.00 to $320.00 and gave the company an "overweight" rating in a research note on Thursday, August 27th. DZ Bank reissued a "buy" rating on shares of NVIDIA in a report on Wednesday, August 26th. Finally, Mizuho set a $315.00 price objective on shares of NVIDIA and gave the stock an "outperform" rating in a research report on Thursday, August 27th. Three analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently 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: China sales could receive a boost: Upcoming discussions between U.S. President Donald Trump and Chinese President Xi Jinping have raised hopes that restrictions on Nvidia’s ability to sell advanced chips in China could ease. However, negotiations have not yet produced licenses or customer orders. Nvidia Stock Can Surge on Trump’s China Talks
• Positive Sentiment: AI demand is expanding: Nvidia is positioning its technology for AI agents, CPUs, cybersecurity, autonomous vehicles and potentially orbital data centers. Its support for Swedish autonomous-truck company Einride highlights additional growth opportunities beyond traditional data-center GPUs. Nvidia to Support Scale-Up of Autonomous Trucks at Sweden's Einride
• Positive Sentiment: Strategic AI acquisition: Nvidia reportedly agreed to acquire Hugging Face for approximately $12.9 billion, giving it access to a large ecosystem of AI models, datasets, applications and developers. The deal could strengthen Nvidia’s software and developer distribution, though its financial impact is not yet clear. Nvidia’s Hugging Face Deal
• Positive Sentiment: Analyst support remains strong: Wall Street’s average price target implies substantial additional upside, while a broker raised its fiscal 2027 EPS estimate. Nvidia’s latest reported quarter also showed revenue growth above 100% year over year and an earnings beat. Wall Street Analysts See Upside in Nvidia
• Neutral Sentiment: CEO Jensen Huang rejected AI “doomsday” forecasts and argued that existing laws are sufficient, reinforcing Nvidia’s stance against regulation that could slow adoption. His comments may support sentiment but do not directly change earnings expectations. Nvidia CEO Rejects AI Doomsday Fears
• Negative Sentiment: Rates and valuation remain key risks: Commentary warned that higher interest rates could pressure heavily valued AI stocks by raising financing costs and reducing the present value of future growth. Nvidia’s high expectations leave the shares sensitive to any slowdown in hyperscaler spending or AI demand. Why Higher Rates Are Becoming Nvidia’s Biggest Threat
• Negative Sentiment: Nvidia’s CFO sold roughly $7.6 million of stock. The transaction is small relative to the company’s market value but may add modest insider-selling pressure.

NVIDIA Profile

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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