Gunderson Capital Management LLC Acquires 83,895 Shares of NVIDIA Corporation $NVDA

Key Points

• Gunderson Capital Management opened a sizable NVIDIA position, acquiring 83,895 shares worth about $19.16 million in the third quarter. The stock now represents 5.2% of its portfolio and is its second-largest holding.
• Other institutional investors also adjusted or increased their NVIDIA holdings; hedge funds and other institutions collectively own 65.27% of the company’s shares.
• NVIDIA beat analyst estimates in its latest reported quarter, with revenue up 105.9% year over year. Analysts’ consensus rating is “Buy,” with an average price target of $318.85; the company also approved a $150 billion share repurchase plan.

Gunderson Capital Management LLC acquired a new position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 83,895 shares of the computer hardware maker's stock, valued at approximately $19,160,000. NVIDIA comprises about 5.2% of Gunderson Capital Management LLC's portfolio, making the stock its 2nd largest holding.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in NVDA. Boyd Wealth Management LLC grew its position in NVIDIA by 273.4% during the second quarter. Boyd Wealth Management LLC now owns 9,145 shares of the computer hardware maker's stock valued at $1,830,000 after acquiring an additional 6,696 shares during the last quarter. Ally Financial Inc. lifted its holdings in shares of NVIDIA by 10.3% in the 2nd quarter. Ally Financial Inc. now owns 172,000 shares of the computer hardware maker's stock worth $34,415,000 after acquiring an additional 16,000 shares during the last quarter. Altshuler Shaham Ltd boosted its stake in shares of NVIDIA by 6,451.9% in the 1st quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker's stock valued at $111,134,000 after purchasing an additional 627,510 shares in the last quarter. Vanguard Capital Wealth Advisors boosted its stake in shares of NVIDIA by 5.6% in the 2nd quarter. Vanguard Capital Wealth Advisors now owns 52,163 shares of the computer hardware maker's stock valued at $10,437,000 after purchasing an additional 2,758 shares in the last quarter. Finally, Baker Tilly Wealth Management LLC boosted its stake in shares of NVIDIA by 7.4% in the 2nd quarter. Baker Tilly Wealth Management LLC now owns 71,898 shares of the computer hardware maker's stock valued at $14,386,000 after purchasing an additional 4,958 shares in the last quarter. 65.27% of the stock is currently owned by hedge funds and other institutional investors.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Some investors see the decline as a buying opportunity, citing NVIDIA’s strong AI-chip position and profitability. ARK Invest also reportedly added $45.9 million of NVDA shares during the sell-off. Nvidia Stock Rises on Dip-Buying: 3 Reasons to Be Optimistic
• Positive Sentiment: CEO Jensen Huang says the next-generation Vera Rubin platform could generate more revenue per gigawatt of data-center capacity than the current platform, supporting the case for continued growth. Jensen Huang Says Nvidia's Next-Gen Vera Rubin Chips Will Generate $40 Billion in Revenue per Gigawatt
• Neutral Sentiment: NVIDIA’s upcoming Nov. 17 results are a key near-term catalyst: investors will look for evidence that demand and guidance can ease fears about AI spending and justify the stock’s recovery. Nvidia Investors Need to Be Paying Attention on Nov. 17
• Negative Sentiment: The rebound follows a steep sell-off that wiped roughly $450 billion from NVIDIA’s market value. Investors are worried that a Democratic-led Congress, data-center permitting or regulatory hurdles, high capital costs, and uncertain returns could delay infrastructure projects and weaken future chip demand. AI stocks hammered by midterm shock as data center buildout becomes a 'war of attrition'
• Negative Sentiment: Reports that NVIDIA may be taking on greater exposure to financially strained “neocloud” customers raise concern that it could face risks beyond selling chips if those providers struggle to fund data centers. As neoclouds face a financial reckoning, Nvidia has to decide how far to go to help

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on NVDA shares. Wall Street Zen lowered shares of NVIDIA from a "strong-buy" rating to a "buy" rating in a report on Saturday, October 24th. Sanford C. Bernstein reissued a "buy" rating on shares of NVIDIA in a research note on Monday, September 21st. Stifel Nicolaus set a $315.00 price target on shares of NVIDIA in a research report on Thursday, August 27th. Wells Fargo & Company set a $210.00 price objective on NVIDIA in a research note on Friday, October 2nd. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating and set a $350.00 price objective on shares of NVIDIA in a research note on Thursday, October 1st. Five research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, NVIDIA presently has an average rating of "Buy" and an average target price of $318.85.

NVIDIA Price Performance

NVDA stock opened at $186.64 on Monday. NVIDIA Corporation has a 1 year low of $164.27 and a 1 year high of $243.37. The company has a market cap of $4.50 trillion, a P/E ratio of 23.60, a PEG ratio of 1.43 and a beta of 2.21. The firm has a 50-day moving average of $219.80 and a 200 day moving average of $204.53. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping the consensus estimate of $2.09 by $0.13. The business had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. NVIDIA's quarterly revenue was up 105.9% compared to the same quarter last year. During the same period last year, the business posted $1.05 earnings per share. On average, sell-side analysts forecast that NVIDIA Corporation will post 9.30 EPS for the current year.

NVIDIA Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were given a $0.25 dividend. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA's dividend payout ratio is currently 12.64%.

NVIDIA announced that its Board of Directors has approved a share buyback plan on Monday, September 28th that allows the company to buy back $150 billion in outstanding shares. This buyback authorization allows the computer hardware maker to buy up to 2.8% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

Insider Transactions at NVIDIA

In related news, EVP Timothy S. Teter sold 30,460 shares of the company's stock in a transaction on Monday, September 21st. The stock was sold at an average price of $222.80, for a total value of $6,786,488.00. Following the sale, the executive vice president directly owned 2,687,660 shares of the company's stock, valued at $598,810,648. This represents a 1.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the company's stock in a transaction 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 completion of the sale, the director directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 1,766,118 shares of company stock valued at $399,450,353. Corporate insiders own 3.94% of the company's stock.

About NVIDIA

NVIDIA Corporation develops graphics processing units (GPUs), accelerated computing platforms and related software. Founded in 1993, the company first became widely known for GPUs used in PC gaming and professional graphics. Its technology now also supports artificial intelligence, scientific computing and other data-intensive applications.

NVIDIA's offerings include GeForce products for gaming, data-center GPUs and systems for AI workloads, and networking products that connect computing infrastructure.

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