First Growth Capital LLC Makes New Investment in NVIDIA Corporation $NVDA

Key Points

• First Growth Capital LLC disclosed a new fourth-quarter stake in NVIDIA, buying 4,203 shares valued at about $799,000. Several other institutional investors also increased or initiated positions, and institutions now own 65.27% of the stock.
• NVIDIA’s latest earnings topped expectations, with $1.87 EPS versus $1.76 expected and $81.61 billion in quarterly revenue, up 85.2% year over year. Analysts remain broadly bullish, with a consensus rating of Buy and an average price target of $305.67.
• The company also boosted shareholder returns and capital returns, authorizing an $80 billion stock buyback and raising its quarterly dividend to $0.25 per share from $0.01. Meanwhile, insiders have been net sellers recently, including directors John Dabiri and Stephen C. Neal.

First Growth Capital LLC bought a new stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) during the fourth quarter, according to the company in its most recent disclosure with the SEC. The firm bought 4,203 shares of the computer hardware maker's stock, valued at approximately $799,000.

Several other hedge funds and other institutional investors also recently modified their holdings of NVDA. Longfellow Investment Management Co. LLC grew its position in NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock valued at $33,000 after acquiring an additional 67 shares during the last quarter. Spurstone Advisory Services LLC bought a new position in shares of NVIDIA in the second quarter worth about $40,000. Inspire Investing LLC bought a new position in shares of NVIDIA in the fourth quarter worth about $44,000. AlphaCentric Advisors LLC acquired a new stake in shares of NVIDIA in the 4th quarter valued at approximately $45,000. Finally, Syntax Research Inc. boosted its stake in shares of NVIDIA by 62.5% in the 4th quarter. Syntax Research Inc. now owns 260 shares of the computer hardware maker's stock valued at $49,000 after purchasing an additional 100 shares in the last quarter. Institutional investors own 65.27% of the company's stock.

Insider Transactions at NVIDIA

In related news, Director John Dabiri sold 625 shares of the business's stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the sale, the director owned 14,163 shares of the company's stock, valued at $3,030,882. The trade was a 4.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of the business's stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the sale, the director directly owned 116,135 shares in the company, valued at approximately $25,053,803.55. This represents a 11.77% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 1,016,125 shares of company stock worth $224,582,565. Company insiders own 3.94% of the company's stock.

NVIDIA Stock Up 3.0%

Shares of NASDAQ NVDA opened at $210.69 on Friday. The company has a 50 day simple moving average of $209.33 and a 200 day simple moving average of $192.25. The firm has a market cap of $5.10 trillion, a PE ratio of 32.26, a price-to-earnings-growth ratio of 0.46 and a beta of 2.22. NVIDIA Corporation has a 1 year low of $142.03 and a 1 year high of $236.54. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping the consensus estimate of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. During the same period last year, the company earned $0.81 EPS. The firm's revenue was up 85.2% compared to the same quarter last year. On average, research analysts forecast that NVIDIA Corporation will post 8.65 EPS for the current year.

NVIDIA announced that its Board of Directors has authorized a stock repurchase plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to buy up to 1.5% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's management believes its stock is undervalued.

NVIDIA Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Thursday, June 4th will be issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. This is a boost from NVIDIA's previous quarterly dividend of $0.01. The ex-dividend date is Thursday, June 4th. NVIDIA's dividend payout ratio (DPR) is presently 15.31%.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on NVDA shares. Wedbush lifted their price target on shares of NVIDIA from $300.00 to $330.00 and gave the company an "outperform" rating in a report on Thursday, May 21st. Rothschild & Co Redburn increased their price objective on shares of NVIDIA from $280.00 to $300.00 and gave the company a "buy" rating in a research note on Tuesday, May 26th. Sanford C. Bernstein restated a "buy" rating on shares of NVIDIA in a research report on Monday, June 8th. Wall Street Zen raised shares of NVIDIA from a "buy" rating to a "strong-buy" rating in a research note on Saturday, May 23rd. Finally, Wells Fargo & Company reiterated an "overweight" rating and set a $315.00 price target (up from $265.00) on shares of NVIDIA in a report on Tuesday, May 12th. Three analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus price target of $305.67.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA was highlighted as an anchor investor in Helix Digital Infrastructure’s new $10 billion AI buildout initiative, reinforcing its central role in financing and shaping the broader AI infrastructure expansion. NVIDIA Corporation (NVDA) Invests in a $10B AI Buildout Initiative
• Positive Sentiment: HIVE Digital announced a $220 million AI infrastructure contract that will deploy 2,304 NVIDIA Grace Blackwell GPUs, adding another example of strong real-world demand for NVIDIA hardware in high-performance computing and AI cloud workloads. HIVE secures $220M AI infrastructure contract with Bell and Cohere
• Positive Sentiment: NVIDIA gained visibility from a new ETF launch, PurePlay NVPS, which is designed to track companies supporting the NVIDIA-led AI buildout; that kind of product can broaden investor exposure to the ecosystem and keep the NVIDIA trade in focus. Exchange Traded Concepts Announces Launch of PurePlay Nvidia Ecosystem Picks & Shovels Index ETF Nasdaq: NVPS with PurePlay ETFs
• Positive Sentiment: IDC reports that NVIDIA took the No. 1 spot in data center Ethernet switching revenue in Q1, suggesting the company is extending its reach beyond GPUs into more of the AI infrastructure stack. Nvidia takes No. 1 spot in data center ethernet switching by revenue in Q1: IDC
• Neutral Sentiment: Several articles focused on NVIDIA’s broad market influence, recent analyst praise, and CEO Jensen Huang’s comments about AI demand, which support the long-term story but do not change the near-term fundamentals by themselves.
• Negative Sentiment: Amazon’s reported discussions about selling its own AI chips and pushing Trainium deeper into the market could increase competition for NVIDIA in cloud AI accelerators over time. Amazon hopes to challenge Nvidia more directly by selling its AI chips
• Negative Sentiment: Some coverage also warned that AI spending may face a funding squeeze and that major investors such as Michael Burry remain skeptical, which can weigh on sentiment around NVIDIA’s premium valuation. Nvidia Stock Braced for AI Funding Squeeze

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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