J. Derek Lewis & Associates Inc. Makes New Investment in NVIDIA Corporation $NVDA

Key Points

• J. Derek Lewis & Associates opened a new position in NVIDIA during the fourth quarter, buying 27,953 shares valued at about $5.2 million. The stake makes NVIDIA its 16th-largest holding and about 1.2% of its portfolio.
• NVIDIA’s latest earnings were strong, with $1.87 EPS and $81.61 billion in revenue, both topping expectations and reflecting 85.2% year-over-year revenue growth. The company also announced a quarterly dividend increase to $0.25 per share and approved an $80 billion stock buyback.
• Sentiment around the stock remains mixed: analysts largely stay bullish with a consensus Buy rating and a target price of $305.67, but the shares are facing pressure from broader AI-spending concerns and a recent lawsuit related to AI training.

J. Derek Lewis & Associates Inc. purchased a new position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 27,953 shares of the computer hardware maker's stock, valued at approximately $5,213,000. NVIDIA comprises approximately 1.2% of J. Derek Lewis & Associates Inc.'s holdings, making the stock its 16th biggest holding.

Other hedge funds and other institutional investors have also modified their holdings of the company. Lifetime Wealth Management P.C. bought a new position in shares of NVIDIA during the 4th quarter worth about $26,000. Longfellow Investment Management Co. LLC grew its position in NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock worth $33,000 after buying an additional 67 shares in the last quarter. Spurstone Advisory Services LLC bought a new position in NVIDIA during the second quarter valued at about $40,000. Inspire Investing LLC acquired a new position in NVIDIA in the 4th quarter valued at approximately $44,000. Finally, AlphaCentric Advisors LLC acquired a new position in NVIDIA in the 4th quarter valued at approximately $45,000. Institutional investors and hedge funds own 65.27% of the company's stock.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA continues to secure new AI-related partnerships and product momentum, including the launch of its BioNeMo Agent Toolkit for life sciences and additional collaborations around digital twins, robotics, and energy infrastructure. Nvidia launches BioNeMo agent toolkit for AI-driven life sciences research
• Positive Sentiment: Analysts and several articles continue to frame NVIDIA as a long-term winner from AI infrastructure buildout, with some bullish commentary pointing to strong earnings growth, major data-center demand, and attractive valuation relative to its growth. Nvidia: The $1 Trillion Trade Hiding In Plain Sight
• Neutral Sentiment: The company’s latest earnings remain a positive backdrop: NVIDIA beat expectations on both EPS and revenue, with revenue up sharply year over year, reinforcing that fundamentals are still strong despite the stock’s weakness.
• Negative Sentiment: AI spending concerns are weighing on the whole chip complex, with reports that SK Hynix is slowing HBM expansion and traders worrying about the sustainability of debt-funded AI capex. That has hit NVIDIA alongside peers like AMD, Intel, Micron, and SanDisk. Lam Research, Qualcomm, and Western Digital Stocks Trade Down, What You Need To Know
• Negative Sentiment: There is also some company-specific headline risk from a Reuters report that NVIDIA was sued by music company Jamendo over AI training, adding to near-term uncertainty. Nvidia sued by music company Jamendo over AI training

NVIDIA Stock Performance

NVIDIA stock opened at $200.00 on Wednesday. The firm has a market capitalization of $4.84 trillion, a P/E ratio of 30.63, a P/E/G ratio of 0.47 and a beta of 2.22. The stock has a fifty day moving average price of $210.62 and a two-hundred day moving average price of $192.80. NVIDIA Corporation has a 52-week low of $145.50 and a 52-week 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 EPS for the quarter, beating 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 company had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. During the same quarter in the previous year, the company earned $0.81 EPS. The firm's revenue for the quarter was up 85.2% compared to the same quarter last year. As a group, analysts anticipate that NVIDIA Corporation will post 8.65 EPS for the current fiscal year.

NVIDIA Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be paid a dividend of $0.25 per share. This is a positive change from NVIDIA's previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, June 4th. NVIDIA's payout ratio is currently 15.31%.

NVIDIA announced that its Board of Directors has approved a stock repurchase program 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 programs are typically a sign that the company's board believes its shares are undervalued.

Analyst Ratings Changes

Several brokerages have recently weighed in on NVDA. HSBC reissued a "buy" rating and set a $325.00 price objective (up from $295.00) on shares of NVIDIA in a report on Tuesday, May 19th. CICC Research raised their target price on NVIDIA from $240.60 to $268.30 and gave the stock an "outperform" rating in a research report on Friday, May 22nd. Bank of America reiterated a "buy" rating and set a $350.00 price target (up from $320.00) on shares of NVIDIA in a research note on Thursday, May 21st. DA Davidson reissued a "buy" rating and issued a $300.00 price target on shares of NVIDIA in a report on Monday, June 1st. Finally, Fundamental Research set a $218.00 price objective on shares of NVIDIA in a research note on Thursday, February 26th. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, NVIDIA currently has a consensus rating of "Buy" and a consensus target price of $305.67.

Insiders Place Their Bets

In other news, Director Mark A. Stevens sold 885,000 shares of the business's stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total value of $186,000,450.00. Following the transaction, the director directly owned 5,207,271 shares of the company's stock, valued at $1,094,412,146.07. The trade was a 14.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Stephen C. Neal sold 15,500 shares of the stock in a transaction that occurred on 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 sale, the director owned 116,135 shares in the company, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 1,901,125 shares of company stock valued at $410,583,015. 3.94% of the stock is currently owned by insiders.

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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