Element Capital Management LLC Purchases 32,890 Shares of NVIDIA Corporation $NVDA

Key Points

• Element Capital Management initiated a $6.58 million NVIDIA position by purchasing 32,890 shares in the second quarter. Institutional investors collectively own 65.27% of NVIDIA.
• NVIDIA reported strong operating momentum, with quarterly revenue up 105.9% year over year to $96.22 billion and earnings exceeding analyst expectations. The company also authorized a $150 billion share-buyback plan.
• Analyst sentiment remains broadly positive, with an average “Buy” rating and a $321.89 price target, although insiders have sold $399.45 million of stock over the past 90 days and some investors remain concerned about AI-spending sustainability.

Element Capital Management LLC purchased a new stake in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 32,890 shares of the computer hardware maker's stock, valued at approximately $6,581,000. NVIDIA comprises about 0.2% of Element Capital Management LLC's investment portfolio, making the stock its 23rd biggest position.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in NVDA. Galaxy Digital Capital Management GP LLC acquired a new position in shares of NVIDIA in the second quarter valued at approximately $5,471,000. Nicholas Investment Partners LP increased its stake in shares of NVIDIA by 7.0% during the second quarter. Nicholas Investment Partners LP now owns 126,682 shares of the computer hardware maker's stock worth $25,348,000 after purchasing an additional 8,335 shares during the period. RDST Capital LLC bought a new position in shares of NVIDIA during the second quarter worth approximately $65,797,000. White Knight Strategic Wealth Advisors LLC lifted its holdings in NVIDIA by 2.4% during the 2nd quarter. White Knight Strategic Wealth Advisors LLC now owns 45,978 shares of the computer hardware maker's stock worth $9,200,000 after purchasing an additional 1,059 shares during the last quarter. Finally, HMI Capital Management L.P. acquired a new stake in NVIDIA during the 2nd quarter worth approximately $32,575,000. 65.27% of the stock is owned by institutional investors.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: AI infrastructure demand remains robust. TSMC reported third-quarter revenue growth of 50%, while analysts cited continued hyperscaler spending and projected U.S. data-center capital expenditures of roughly $2 trillion next year—supportive of NVIDIA’s accelerator demand. NVIDIA AI spending outlook
• Positive Sentiment: SpaceX reportedly plans to raise as much as $40 billion to purchase NVIDIA AI chips, highlighting the scale of demand from emerging AI customers. NVIDIA also committed $1 billion over five years to U.S. scientific research in areas including quantum computing, healthcare and energy security. SpaceX NVIDIA chip purchase report
• Neutral Sentiment: Options activity is mixed: a large bullish trade suggests some investors expect further gains, but heavier put buying in the semiconductor ETF indicates increased hedging and caution across the chip sector. Technical analysts also see resistance near $235 and potential support around $215–$220. NVIDIA and semiconductor options activity
• Negative Sentiment: Investors remain concerned that AI spending may be debt-funded and approaching a peak. The withdrawal of NVIDIA-backed Firmus Grid’s proposed multibillion-dollar IPO, alongside reports that OpenAI’s annualized revenue was below earlier expectations, has raised questions about AI infrastructure valuations and customer funding. Firmus IPO withdrawal
• Negative Sentiment: Leadership and governance headlines add limited uncertainty: NVIDIA’s head of corporate communications left after roughly four months, while a legal challenge to the company’s Groq technology transaction could create additional execution and reputational risk. NVIDIA communications chief departure

Insider Activity

In other news, EVP Timothy Teter sold 30,460 shares of the company's stock in a transaction dated 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 directly owned 2,687,660 shares of the company's stock, valued at $598,810,648. This represents a 1.12% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 34,918 shares of the company's stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the completion of the sale, the chief financial officer directly owned 765,103 shares in the company, valued at $167,595,812.15. This represents a 4.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Corporate insiders own 3.94% of the company's stock.

Analysts Set New Price Targets

Several analysts recently issued reports on the company. Daiwa Securities Group reduced their price target on NVIDIA from $255.00 to $245.00 and set an "outperform" rating for the company in a research note on Thursday, September 17th. Benchmark reiterated a "buy" rating and set a $335.00 price objective on shares of NVIDIA in a research report on Thursday, August 27th. Cantor Fitzgerald reissued an "overweight" rating and set a $350.00 target price on shares of NVIDIA in a report on Thursday, October 1st. Melius Research set a $420.00 target price on NVIDIA in a report on Thursday, August 27th. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of NVIDIA in a research report on Friday, October 2nd. Five analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Buy" and an average price target of $321.89.

NVIDIA Trading Down 0.5%

NASDAQ:NVDA opened at $229.28 on Friday. The company has a fifty day moving average of $222.66 and a 200 day moving average of $209.43. NVIDIA Corporation has a 52 week low of $164.27 and a 52 week high of $243.37. 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 capitalization of $5.53 trillion, a P/E ratio of 28.99, a P/E/G ratio of 1.77 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly earnings data 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 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 analyst estimates of $92.27 billion. During the same period last year, the company earned $1.05 EPS. The business's quarterly revenue was up 105.9% compared to the same quarter last year. On average, research analysts predict that NVIDIA Corporation will post 9.25 earnings per share for the current year.

NVIDIA declared that its Board of Directors has authorized a share buyback plan on Monday, September 28th that allows the company to repurchase $150.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Share buyback plans are generally a sign that the company's board believes its stock is undervalued.

NVIDIA Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date was Thursday, September 10th. NVIDIA's payout ratio is 12.64%.

NVIDIA Profile

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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