First American Bank Boosts Stake in NVIDIA Corporation $NVDA

Key Points

• First American Bank increased its NVIDIA stake by 1.8% in the first quarter, adding 6,848 shares and bringing its total to 383,616 shares valued at about $66.9 million. NVIDIA is now the bank’s fifth-largest holding and makes up roughly 4.2% of its portfolio.
• NVIDIA continues to post strong operating results and shareholder returns, reporting quarterly EPS and revenue above expectations, with revenue up 85.2% year over year. The company also authorized an $80 billion share buyback and raised its quarterly dividend from $0.01 to $0.25 per share.
• Sentiment remains mixed despite bullish long-term catalysts: analysts largely keep buy ratings and high price targets, but some bearish commentary and insider selling have raised short-term caution. NVIDIA stock was also down 1.3% in the latest session.

First American Bank boosted its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 1.8% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 383,616 shares of the computer hardware maker's stock after buying an additional 6,848 shares during the quarter. NVIDIA makes up about 4.2% of First American Bank's investment portfolio, making the stock its 5th largest holding. First American Bank's holdings in NVIDIA were worth $66,903,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in NVDA. Brighton Jones LLC grew its holdings in NVIDIA by 12.4% during the fourth quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker's stock valued at $43,631,000 after purchasing an additional 35,815 shares during the period. Bank Pictet & Cie Europe AG raised its stake in NVIDIA by 1.0% during the fourth quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker's stock valued at $315,100,000 after purchasing an additional 22,929 shares in the last quarter. Highview Capital Management LLC DE lifted its holdings in shares of NVIDIA by 6.7% in the 4th quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker's stock valued at $7,842,000 after acquiring an additional 3,653 shares during the last quarter. Hudson Value Partners LLC boosted its holdings in shares of NVIDIA by 30.7% in the 4th quarter. Hudson Value Partners LLC now owns 50,658 shares of the computer hardware maker's stock worth $6,805,000 after purchasing an additional 11,900 shares during the period. Finally, Wealth Group Ltd. increased its position in NVIDIA by 15.7% during the first quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker's stock valued at $715,000 after acquiring an additional 896 shares during the last quarter. 65.27% of the stock is currently owned by institutional investors.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA expanded its AI ecosystem with a sovereign-AI partnership with Palantir to deploy secure AI models for government and infrastructure customers, reinforcing demand for its GPUs and software stack. Article Title
• Positive Sentiment: Reuters reported that Valar Atomics is partnering with NVIDIA on a small Utah data center aimed at showing how AI infrastructure can conserve water, highlighting another real-world use case for NVIDIA’s data-center technology. Article Title
• Positive Sentiment: Several reports pointed to continued bullish long-term catalysts, including robotics, edge AI, and ongoing hyperscaler capex, suggesting NVIDIA remains central to the AI buildout even amid a short-term pullback. Article Title
• Neutral Sentiment: Analyst commentary and valuation-focused articles remain constructive overall, with multiple firms reiterating positive ratings and raising earnings estimates, but these views are being offset by near-term concerns about stretched valuations and sector rotation. Article Title
• Negative Sentiment: Bearish technical commentary warns that NVIDIA could drift lower in the short term, with some traders eyeing a move toward $165 if support breaks. Article Title
• Negative Sentiment: Michael Burry disclosed short bets against NVIDIA and other chip stocks, adding to concerns that the semiconductor group may be overextended after its big run. Article Title

Insider Transactions at NVIDIA

In related news, Director Stephen C. Neal sold 15,500 shares of the company's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total value of $3,343,815.00. Following the completion of the transaction, the director owned 116,135 shares of the company's stock, valued at approximately $25,053,803.55. This represents a 11.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director John Dabiri sold 625 shares of the stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total value of $133,750.00. Following the transaction, the director owned 14,163 shares in the company, valued at $3,030,882. This represents a 4.23% 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. Insiders have sold a total of 1,901,125 shares of company stock valued at $410,583,015 in the last ninety days. 3.94% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. TD Cowen reiterated a "buy" rating and issued a $275.00 price target (up from $235.00) on shares of NVIDIA in a report on Friday, May 15th. Morgan Stanley set a $288.00 price target on shares of NVIDIA and gave the stock an "overweight" rating in a report on Thursday, May 21st. Barclays restated an "overweight" rating on shares of NVIDIA in a report on Thursday, May 21st. BTIG Research began coverage on shares of NVIDIA in a report on Wednesday, April 15th. They issued a "buy" rating for the company. Finally, Citigroup initiated coverage on shares of NVIDIA in a research note on Wednesday, April 15th. They set a "buy" rating for the company. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, NVIDIA currently has a consensus rating of "Buy" and an average target price of $303.84.

NVIDIA Stock Down 1.3%

Shares of NVDA stock opened at $197.58 on Thursday. NVIDIA Corporation has a twelve month low of $152.97 and a twelve month high of $236.54. The stock has a market cap of $4.78 trillion, a P/E ratio of 30.26, a P/E/G ratio of 0.44 and a beta of 2.21. The stock has a 50 day moving average of $210.48 and a 200 day moving average of $193.36. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping analysts' consensus estimates of $1.76 by $0.11. The business had revenue of $81.61 billion for the quarter, compared to analysts' expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business's revenue was up 85.2% on a year-over-year basis. During the same quarter last year, the company earned $0.81 EPS. As a group, sell-side analysts expect that NVIDIA Corporation will post 8.69 EPS for the current year.

NVIDIA declared that its Board of Directors has initiated a share repurchase 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 buy up to 1.5% of its stock through open market purchases. Stock buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

NVIDIA Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Thursday, June 4th were paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend was Thursday, June 4th. This is an increase from NVIDIA's previous quarterly dividend of $0.01. NVIDIA's dividend payout ratio is currently 15.31%.

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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