JAT Capital Mgmt LP Makes New Investment in NVIDIA Corporation $NVDA

Key Points

• JAT Capital Management acquired 54,000 NVIDIA shares worth approximately $9.4 million, making NVDA its fourth-largest holding and representing about 15.9% of its portfolio. Institutional investors collectively own 65.27% of NVIDIA.
• NVIDIA reported quarterly revenue of $81.61 billion, up 85.2% year over year, and EPS of $1.87, beating analysts’ estimates. The company also authorized an $80 billion share-repurchase program and increased its quarterly dividend to $0.25 per share.
• Despite broadly bullish analyst ratings and a consensus price target of $304.26, NVIDIA insiders sold 1.9 million shares valued at approximately $410.6 million in the latest quarter, including substantial sales by directors Stephen C. Neal and Mark A. Stevens.

JAT Capital Mgmt LP acquired a new stake in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 54,000 shares of the computer hardware maker's stock, valued at approximately $9,418,000. NVIDIA makes up about 15.9% of JAT Capital Mgmt LP's holdings, making the stock its 4th biggest position.

Other institutional investors have also made changes to their positions in the company. Lifetime Wealth Management P.C. purchased a new position in shares of NVIDIA during the fourth quarter valued at $26,000. Longview Financial Advisors Inc. purchased a new stake in NVIDIA in the 1st quarter worth about $27,000. Longfellow Investment Management Co. LLC lifted its stake in NVIDIA by 47.9% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock worth $33,000 after acquiring an additional 67 shares in the last quarter. Phillip James Consulting Co. acquired a new stake in NVIDIA during the 1st quarter worth about $40,000. Finally, Spurstone Advisory Services LLC purchased a new position in NVIDIA during the 2nd quarter valued at about $40,000. 65.27% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other NVIDIA news, Director Stephen C. Neal sold 15,500 shares of the company's stock in a transaction dated Wednesday, June 3rd. The shares were 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 $25,053,803.55. This represents a 11.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Mark A. Stevens sold 885,000 shares of the firm's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the sale, the director directly owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. This represents a 14.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 1,901,125 shares of company stock valued at $410,583,015 in the last quarter. Insiders own 3.94% of the company's stock.

NVIDIA Stock Up 2.3%

Shares of NVIDIA stock opened at $223.96 on Friday. NVIDIA Corporation has a 12-month low of $164.07 and a 12-month high of $236.54. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. The stock has a 50 day moving average price of $205.66 and a two-hundred day moving average price of $197.19. The stock has a market capitalization of $5.42 trillion, a P/E ratio of 34.30, a PEG ratio of 0.43 and a beta of 2.23.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating analysts' consensus estimates 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 analyst estimates of $78.42 billion. During the same quarter last year, the firm posted $0.81 earnings per share. The company's quarterly revenue was up 85.2% compared to the same quarter last year. Equities analysts expect that NVIDIA Corporation will post 8.79 earnings per share for the current year.

NVIDIA declared that its Board of Directors has approved a share repurchase program on Wednesday, May 20th that allows the company to buyback $80.00 billion in shares. This buyback authorization allows the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

NVIDIA Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were given a dividend of $0.25 per share. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. This is a positive change from NVIDIA's previous quarterly dividend of $0.01. NVIDIA's dividend payout ratio (DPR) is presently 15.31%.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the company. Citic Securities upped their target price on NVIDIA from $242.00 to $315.00 and gave the company a "buy" rating in a report on Friday, May 22nd. JPMorgan Chase & Co. raised their price target on shares of NVIDIA from $265.00 to $280.00 and gave the stock an "overweight" rating in a report on Thursday, May 21st. Melius Research set a $400.00 price objective on shares of NVIDIA in a research report on Thursday, May 21st. DA Davidson reiterated a "buy" rating and issued a $300.00 price objective on shares of NVIDIA in a research note on Monday, June 1st. Finally, DZ Bank reissued a "buy" rating on shares of NVIDIA in a research note on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, NVIDIA has an average rating of "Buy" and a consensus price target of $304.26.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Reports that SpaceX plans to deploy NVIDIA’s next-generation AI hardware across terrestrial and orbital computing infrastructure reinforced expectations for another major customer and expanded demand for NVIDIA systems. Time to Buy Nvidia or SpaceX Stock After Their AI Partnership?
• Positive Sentiment: Strong spending by hyperscalers, demand for AI data-center capacity, and NVIDIA-backed projects such as Firmus’ $2 billion fundraising in Australia and Asia-Pacific supported the view that AI infrastructure investment remains robust. Firmus nearly doubles valuation to over $10.5 billion
• Positive Sentiment: Analyst and market commentary highlighted NVIDIA’s leadership in sovereign AI, with one report estimating a 92% share, while investors continued to describe the company as evolving from a GPU supplier into a broader AI infrastructure platform. What’s Going On With NVIDIA Stock Friday?
• Positive Sentiment: Recent commentary pointed to accelerating AI demand, strong cash flow and valuation support, with the median analyst price target reported at $308.50 versus recent trading levels. Should You Buy NVIDIA Stock After Its 11% Rally in a Month?
• Neutral Sentiment: NVIDIA’s rally has lifted the stock roughly 12% over five sessions, increasing focus on the upcoming earnings report. Analysts remain constructive, but some traders are pausing because near-term catalysts may be limited after the sharp advance. Two reasons why Nvidia's stock saw its biggest weekly surge
• Negative Sentiment: AMD’s acquisition of AI-inference chip startup Taalas could strengthen its competitive position and create a longer-term challenge to NVIDIA, although initial investor commentary suggested the deal does not immediately close NVIDIA’s AI gap. AMD Is Buying Its Way Deeper Into AI Inference
• Negative Sentiment: QuiverQuant data showed 45 NVIDIA insider sales and no insider purchases during the past six months, a potential caution signal as the stock trades near its highs. NVIDIA Stock Opinions on AI Market Position

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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