Gateway Investment Advisers LLC Acquires 411,792 Shares of NVIDIA Corporation $NVDA

Key Points

• Gateway Investment Advisers LLC increased its NVIDIA stake by 7.6% in the fourth quarter, buying 411,792 more shares and bringing its total holdings to 5,824,310 shares. NVIDIA is now the firm’s largest position, making up about 10.1% of its portfolio.
• Analyst sentiment remains very bullish, with NVIDIA carrying a consensus “Buy” rating and an average price target of $305.38. Several firms recently reiterated or raised targets, including Mizuho, Craig Hallum, and DA Davidson.
• NVIDIA continues to post strong fundamentals, recently beating quarterly earnings and revenue estimates with $1.87 EPS and $81.62 billion in revenue. The company also boosted its dividend and authorized an $80 billion stock buyback plan.

Gateway Investment Advisers LLC increased its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 7.6% during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 5,824,310 shares of the computer hardware maker's stock after acquiring an additional 411,792 shares during the period. NVIDIA makes up about 10.1% of Gateway Investment Advisers LLC's portfolio, making the stock its largest holding. Gateway Investment Advisers LLC's holdings in NVIDIA were worth $1,086,234,000 at the end of the most recent quarter.

A number of other institutional investors have also recently modified their holdings of NVDA. Brighton Jones LLC boosted its holdings in NVIDIA by 12.4% in the 4th quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker's stock worth $43,631,000 after buying an additional 35,815 shares during the last quarter. Bank Pictet & Cie Europe AG boosted its holdings in NVIDIA by 1.0% in the 4th quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker's stock worth $315,100,000 after buying an additional 22,929 shares during the last quarter. Highview Capital Management LLC DE boosted its holdings in 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 worth $7,842,000 after buying an additional 3,653 shares during the last quarter. Hudson Value Partners LLC boosted its holdings in 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 buying an additional 11,900 shares during the last quarter. Finally, Wealth Group Ltd. boosted its holdings in NVIDIA by 15.7% in the 1st quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker's stock worth $715,000 after buying an additional 896 shares during the last quarter. 65.27% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on NVDA shares. Mizuho set a $300.00 price objective on NVIDIA in a report on Thursday, May 21st. BTIG Research started coverage on NVIDIA in a report on Wednesday, April 15th. They issued a "buy" rating on the stock. Craig Hallum lifted their price objective on NVIDIA from $245.00 to $275.00 and gave the stock a "buy" rating in a report on Thursday, May 21st. DA Davidson lifted their price objective on NVIDIA from $250.00 to $300.00 and gave the stock a "buy" rating in a report on Monday, May 18th. Finally, Citigroup started coverage on NVIDIA in a report on Wednesday, April 15th. They issued a "buy" rating on the stock. Three research analysts have rated the stock with a Strong Buy rating, forty-seven have issued a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Buy" and an average price target of $305.38.

NVIDIA Trading Down 1.5%

Shares of NVIDIA stock opened at $211.14 on Friday. The stock has a market cap of $5.11 trillion, a P/E ratio of 32.33, a P/E/G ratio of 0.51 and a beta of 2.25. The stock's 50 day simple moving average is $199.28 and its 200-day simple moving average is $189.70. NVIDIA Corporation has a 1-year low of $132.92 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 issued its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, topping the consensus estimate of $1.76 by $0.11. The business had revenue of $81.62 billion for the quarter, compared to analysts' expectations of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The business's revenue for the quarter was up 85.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.81 EPS. Analysts predict that NVIDIA Corporation will post 8.04 EPS for the current fiscal year.

NVIDIA Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Thursday, June 4th will be given 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 is Thursday, June 4th. This is a boost from NVIDIA's previous quarterly dividend of $0.01. NVIDIA's dividend payout ratio is presently 0.61%.

NVIDIA announced that its board has approved a stock buyback plan on Wednesday, May 20th that permits the company to buyback $80.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to reacquire up to 1.5% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's board believes its shares are undervalued.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Investors are looking ahead to next week’s Computex conference, which could provide a fresh catalyst for NVIDIA’s AI-chip leadership and keep sentiment constructive around the stock. Why Nvidia stock is up around 1% today
• Positive Sentiment: Analysts and commentators continue to point to NVIDIA as the main winner from the AI server boom, with strong demand for its chips, Blackwell products, and broader data-center ecosystem. Jim Cramer names Nvidia as the winner behind Dell rally
• Positive Sentiment: News that NVIDIA is investing heavily in photonics, with billions directed toward next-generation data-center connectivity, suggests the company is trying to extend its AI leadership beyond GPUs into the next bottlenecks in AI infrastructure. Nvidia is investing billions into this emerging technology that could change the AI industry
• Positive Sentiment: Truist raised its price target on NVDA to $307 and kept a Buy rating, reinforcing the view that the company’s strong quarterly results and growth outlook remain intact. NVIDIA Corporation (NVDA) Stock Update: Truist Raises Target to $307 Following Strong Quarter
• Neutral Sentiment: CEO Jensen Huang’s reported advisory-board role at Tsinghua University keeps NVIDIA visible in China-related tech circles, but it is more of a corporate-profile headline than a direct earnings driver. Nvidia chief Jensen Huang to join board of Beijing's Tsinghua University, FT reports
• Negative Sentiment: Director John Dabiri sold 625 shares under a pre-arranged 10b5-1 trading plan, which is routine but can still add to investor caution when the stock is already expensive and volatile. SEC filing for John Dabiri transaction
• Negative Sentiment: Several articles highlight concerns that NVIDIA’s valuation is stretched and that the stock may be struggling to extend gains after a huge AI-driven run, which can weigh on near-term trading. Nvidia And The Reality Of Paying For Perfection

Insider Activity

In other news, EVP Ajay K. Puri sold 300,000 shares of NVIDIA stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $182.25, for a total transaction of $54,675,000.00. Following the sale, the executive vice president owned 3,018,547 shares of the company's stock, valued at approximately $550,130,190.75. The trade was a 9.04% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Mark A. Stevens sold 221,682 shares of NVIDIA stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $173.68, for a total transaction of $38,501,729.76. Following the sale, the director directly owned 7,399,771 shares in the company, valued at approximately $1,285,192,227.28. The trade was a 2.91% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 906,961 shares of company stock worth $162,936,268. 3.94% of the stock is owned by company insiders.

NVIDIA Company 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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