Fire Capital Management LLC Decreases Stock Position in NVIDIA Corporation $NVDA

Key Points

• Fire Capital Management reduced its NVIDIA stake by 11.8% in the second quarter, selling 20,531 shares and retaining 153,431 shares valued at approximately $30.7 million. NVIDIA remains the firm’s largest holding and represents 12.5% of its portfolio.
• NVIDIA reported strong quarterly results, with revenue up 105.9% year over year to $96.22 billion and EPS of $2.22, exceeding analyst estimates. CEO Jensen Huang also expects chip sales to roughly double next year as AI data-center demand remains robust.
• Analyst sentiment remains favorable, with a consensus “Buy” rating and average price target of $324.34, although investors continue to monitor competition, potential AI-spending deceleration, rising memory costs and the stock’s elevated valuation.

Fire Capital Management LLC lowered its position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 11.8% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 153,431 shares of the computer hardware maker's stock after selling 20,531 shares during the quarter. NVIDIA accounts for about 12.5% of Fire Capital Management LLC's investment portfolio, making the stock its largest position. Fire Capital Management LLC's holdings in NVIDIA were worth $30,700,000 at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of the company. Bank of America Corp DE lifted its stake in shares of NVIDIA by 2.1% during the 1st quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker's stock valued at $33,345,453,000 after buying an additional 4,019,505 shares in the last quarter. Invesco Ltd. increased its stake in NVIDIA by 0.3% in the 4th quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker's stock worth $26,714,167,000 after buying an additional 446,178 shares in the last quarter. Amundi raised its holdings in NVIDIA by 10.4% during the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock valued at $23,329,141,000 after acquiring an additional 12,575,177 shares during the period. J. Stern & Co. LLP raised its holdings in NVIDIA by 13,709.1% during 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 during the period. Finally, Dimensional Fund Advisors LP lifted its position in shares of NVIDIA by 0.6% in the first quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker's stock valued at $16,479,126,000 after acquiring an additional 555,221 shares in the last quarter. 65.27% of the stock is currently owned by institutional investors.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: CEO Jensen Huang said NVIDIA expects to sell roughly twice as many chips next year, reinforcing expectations that hyperscaler spending on AI data centers remains strong. The forecast includes demand for GPUs, CPUs, networking equipment and complete server racks. Nvidia Chip Sales Could Double Next Year, CEO Jensen Huang Says
• Positive Sentiment: Analysts and market commentators increasingly view NVIDIA as attractively valued relative to its growth. Its scale, diversified AI exposure, high profitability and lower forward valuation multiple give it an advantage over peers such as Credo, while some estimates suggest revenue growth could remain near 70% in fiscal 2028. Credo vs. NVIDIA After Earnings
• Positive Sentiment: AI infrastructure demand is expanding beyond processors into high-bandwidth memory and optical networking. NVIDIA has identified memory and silicon photonics as potential bottlenecks and has committed capital and purchase agreements involving suppliers such as Coherent and Lumentum, signaling sustained demand throughout its supply chain.
• Positive Sentiment: New ecosystem activity supports NVIDIA’s long-term growth narrative. Cloud partner CoreWeave is deploying next-generation Vera Rubin clusters, while NVIDIA-backed Nscale filed for a U.S. IPO. NVIDIA technology is also being used in autonomous trading systems, quantum-computing research and planned enterprise augmented-reality products.
• Neutral Sentiment: Speculative initiatives, including potential orbital data centers with SpaceX and NVIDIA’s quantum-computing software, could create future demand but are unlikely to materially affect near-term revenue.
• Negative Sentiment: Investors remain alert to competition from Huawei’s planned 2027 Ascend chips, possible AI-spending deceleration, rising memory costs that could pressure gross margins, and the effects of higher interest rates. The stock’s elevated valuation and dependence on continued hyperscaler capital expenditure also leave it sensitive to disappointing guidance.

Analyst Ratings Changes

A number of brokerages have issued reports on NVDA. Citigroup reaffirmed a "buy" rating and set a $315.00 price objective (up from $300.00) on shares of NVIDIA in a 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 research report on Thursday, August 27th. KGI Securities lifted their price target on shares of NVIDIA from $335.00 to $345.00 in a report on Thursday, August 27th. Stifel Nicolaus set a $315.00 price target on shares of NVIDIA in a research note on Thursday, August 27th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of NVIDIA in a report on Wednesday, August 26th. Three equities research analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Buy" and an average target price of $324.34.

NVIDIA Stock Performance

NVIDIA stock opened at $222.27 on Friday. The company's 50-day moving average price is $214.66 and its 200-day moving average price is $204.29. 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 company has a market cap of $5.36 trillion, a PE ratio of 28.10, a price-to-earnings-growth ratio of 1.72 and a beta of 2.22. NVIDIA Corporation has a twelve month low of $164.27 and a twelve month high of $236.54.

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

NVIDIA Announces Dividend

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

Insider Activity

In related news, EVP Timothy S. Teter sold 30,000 shares of the stock in a transaction on Monday, August 31st. The stock was sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the sale, the executive vice president owned 2,687,660 shares in the company, valued at approximately $585,587,360.80. This represents a 1.10% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 34,918 shares of the firm's stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total value of $7,648,787.90. Following the completion of the sale, the chief financial officer owned 765,103 shares of the company's stock, valued at approximately $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. Insiders sold 1,735,658 shares of company stock valued at $392,663,865 in the last ninety days. Insiders own 3.94% of the company's stock.

About NVIDIA

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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