E Fund Management Co. Ltd. Trims Position in NVIDIA Corporation $NVDA

Key Points

• E Fund Management reduced its NVIDIA stake by 12.8% in the second quarter, selling 172,315 shares; it still held 1.17 million shares worth approximately $234.8 million. Institutional investors collectively own 65.27% of NVIDIA.
• NVIDIA reported quarterly revenue of $96.22 billion, up 105.9% year over year, and earnings of $2.22 per share, beating analyst expectations. Analysts maintain a consensus “Buy” rating with an average price target of $320.71, while the company authorized a $150 billion share buyback.
• Insiders sold 1.77 million shares worth about $399.5 million over the past three months. Investors are also monitoring valuation, export-control concerns, potential AI-chip financing arrangements and competition from internally developed chips.

E Fund Management Co. Ltd. lessened its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 12.8% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 1,173,459 shares of the computer hardware maker's stock after selling 172,315 shares during the period. NVIDIA accounts for 5.3% of E Fund Management Co. Ltd.'s holdings, making the stock its 4th biggest holding. E Fund Management Co. Ltd.'s holdings in NVIDIA were worth $234,797,000 as of its most recent SEC filing.

Other institutional investors also recently modified their holdings of the company. Lifetime Wealth Management P.C. acquired a new stake in shares of NVIDIA in the fourth quarter valued at about $26,000. Longview Financial Advisors Inc. acquired a new stake in NVIDIA during the 1st quarter valued at approximately $27,000. Langley Wealth Management LLC bought a new position in NVIDIA during the second quarter worth $34,000. Phillip James Consulting Co. acquired a new position in NVIDIA in the first quarter valued at $40,000. Finally, Frankly Finances LLC acquired a new position in NVIDIA in the second quarter valued at $60,000. Institutional investors own 65.27% of the company's stock.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Morgan Stanley named NVIDIA its top semiconductor pick, maintaining an Overweight rating and setting a $300 price target. The firm believes NVIDIA’s software ecosystem, scale and positioning across AI infrastructure trends give it a durable competitive moat. Morgan Stanley names NVIDIA a top pick
• Positive Sentiment: NVIDIA’s recently announced $150 billion buyback authorization lifts total remaining repurchase capacity to approximately $235 billion. Investors view the plan as a sign of management confidence and a potential source of per-share earnings support. NVIDIA buyback analysis
• Positive Sentiment: Analysts continue to raise expectations for hyperscaler spending, with Barclays estimating NVIDIA could generate $401 billion in hyperscaler revenue in 2027. CoreWeave’s launch of the Vera Rubin platform and additional enterprise customers also supports demand for NVIDIA’s next-generation systems. Barclays hyperscaler revenue estimate
• Neutral Sentiment: The broader semiconductor and technology complex is attracting buying interest as AI investment remains a major market leadership theme. However, NVIDIA’s valuation and substantial market concentration leave the stock sensitive to interest rates, economic data and shifts in institutional positioning.
• Negative Sentiment: Investors are monitoring reports that Amazon may move roughly $8 billion of NVIDIA chips off its balance sheet through leasing or financing structures. While this could improve customer flexibility, it adds scrutiny around AI infrastructure financing and so-called circular transactions. Amazon NVIDIA chip balance-sheet report
• Negative Sentiment: Export-control concerns remain a headline risk after prosecutors alleged a California man helped smuggle approximately $300 million of NVIDIA chips to China. Separately, Michael Burry warned that GPU depreciation could undermine the economics of the AI infrastructure boom, while Alphabet’s growing use of internally designed chips represents a longer-term competitive threat. NVIDIA chip smuggling prosecution

Insider Activity at NVIDIA

In other NVIDIA news, Director Mark A. Stevens sold 622,239 shares of the business's stock in a transaction 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 sale, the director owned 2,336,531 shares of the company's stock, valued at $541,187,310.22. The trade was a 21.03% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Timothy S. Teter sold 30,460 shares of the business's stock in a transaction on Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the sale, the executive vice president owned 2,687,660 shares in the company, valued at approximately $598,810,648. The trade was a 1.12% decrease in their ownership of the stock. 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 1,766,118 shares of company stock worth $399,450,353. Company insiders own 3.94% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the company. Cantor Fitzgerald reiterated an "overweight" rating and set a $350.00 price target on shares of NVIDIA in a report on Thursday. Morgan Stanley set a $230.00 target price on NVIDIA in a report on Friday. Wall Street Zen cut NVIDIA from a "strong-buy" rating to a "buy" rating in a report on Saturday, September 26th. Evercore set a $465.00 price objective on shares of NVIDIA and gave the stock an "outperform" rating in a research report on Thursday, August 27th. Finally, Royal Bank Of Canada upped their price objective on shares of NVIDIA from $300.00 to $330.00 and gave the company an "outperform" rating in a report on Thursday, August 27th. Four analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, NVIDIA currently has a consensus rating of "Buy" and a consensus price target of $320.71.

NVIDIA Stock Performance

NVDA stock opened at $233.95 on Monday. NVIDIA Corporation has a 12-month low of $164.27 and a 12-month high of $237.88. The business has a 50 day moving average of $218.74 and a 200-day moving average of $207.65. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The firm has a market cap of $5.64 trillion, a PE ratio of 29.58, a P/E/G ratio of 1.81 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping the consensus estimate 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 for the quarter, compared to analyst estimates of $92.27 billion. During the same quarter in the previous year, the firm posted $1.05 earnings per share. The company's revenue for the quarter was up 105.9% on a year-over-year basis. As a group, sell-side analysts expect that NVIDIA Corporation will post 9.25 earnings per share for the current year.

NVIDIA declared that its board has authorized a share buyback plan on Monday, September 28th that authorizes the company to buyback $150.00 billion in shares. This buyback authorization authorizes the computer hardware maker to buy up to 2.8% of its shares through open market purchases. Shares buyback plans are often a sign that the company's leadership believes its shares are undervalued.

NVIDIA Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were issued a $0.25 dividend. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.4%. NVIDIA's dividend payout ratio (DPR) is 12.64%.

About NVIDIA

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company's products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

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