Gallo Partners LP Purchases New Stake in NVIDIA Corporation $NVDA

Key Points

• Gallo Partners LP acquired 5,041 NVIDIA shares worth approximately $1.0 million during the second quarter, making NVIDIA 2.2% of its portfolio and its 18th-largest holding.
• NVIDIA reported strong quarterly results, with revenue rising 105.9% year over year to $96.22 billion and earnings per share of $2.22, beating analyst expectations. The company also authorized a $150 billion share-buyback program.
• Wall Street remains broadly positive, with an average “Buy” rating and a $321.89 target price, although insiders have sold roughly $399.5 million of stock over the past 90 days.

Gallo Partners LP purchased a new position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm purchased 5,041 shares of the computer hardware maker's stock, valued at approximately $1,009,000. NVIDIA comprises about 2.2% of Gallo Partners LP's holdings, making the stock its 18th largest holding.

Several other institutional investors have also recently made changes to their positions in the company. Bank of America Corp DE increased its stake in NVIDIA by 2.1% during the first quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker's stock worth $33,345,453,000 after acquiring an additional 4,019,505 shares during the last quarter. Invesco Ltd. lifted its position in NVIDIA by 0.3% in the fourth quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker's stock valued at $26,714,167,000 after buying an additional 446,178 shares during the last quarter. Amundi boosted its stake in NVIDIA by 10.4% during the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock worth $23,329,141,000 after buying an additional 12,575,177 shares during the period. J. Stern & Co. LLP increased its position in shares of 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 last quarter. Finally, Dimensional Fund Advisors LP increased its position in shares of NVIDIA by 0.6% during 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 during the last quarter. Hedge funds and other institutional investors own 65.27% of the company's stock.

NVIDIA Trading Down 0.5%

Shares of NVDA stock opened at $229.28 on Friday. The company has a market capitalization of $5.53 trillion, a P/E ratio of 28.99, a price-to-earnings-growth ratio of 1.78 and a beta of 2.22. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. The business's 50 day moving average is $222.66 and its two-hundred day moving average is $209.43. NVIDIA Corporation has a twelve month low of $164.27 and a twelve month high of $243.37.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping the consensus estimate 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 during the quarter, compared to the consensus estimate of $92.27 billion. During the same period last year, the company earned $1.05 earnings per share. The company's revenue for the quarter was up 105.9% on a year-over-year basis. Equities analysts forecast that NVIDIA Corporation will post 9.25 EPS for the current year.

NVIDIA declared that its board has authorized a share buyback program on Monday, September 28th that authorizes the company to buy back $150.00 billion in shares. This buyback authorization authorizes the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Share buyback programs are typically an indication that the company's board believes its shares are undervalued.

NVIDIA Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were paid 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%.

Insider Transactions at NVIDIA

In other NVIDIA news, CFO Colette Kress sold 34,918 shares of the business's stock in a transaction that occurred on 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 transaction, the chief financial officer owned 765,103 shares in the company, valued at approximately $167,595,812.15. The trade was a 4.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the transaction, the director directly owned 2,336,531 shares of the company's stock, valued at approximately $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,766,118 shares of company stock worth $399,450,353 over the last ninety days. 3.94% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the stock. Itau BBA Securities decreased their price objective on shares of NVIDIA from $256.00 to $218.00 in a report on Wednesday, June 24th. Phillip Securities lifted their target price on shares of NVIDIA from $285.00 to $300.00 and gave the company a "buy" rating in a report on Monday, August 31st. Wells Fargo & Company set a $210.00 price objective on NVIDIA in a report on Friday, October 2nd. Melius Research set a $420.00 target price on NVIDIA in a research note on Thursday, August 27th. Finally, Oppenheimer set a $315.00 target price on NVIDIA and gave the company an "outperform" rating in a research report on Thursday, August 27th. Five research analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Buy" and an average target price of $321.89.

More 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

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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