Kendall Capital Management Raises Stock Holdings in NVIDIA Corporation $NVDA

Key Points

• Kendall Capital Management increased its NVIDIA stake by 23.7% in the second quarter, holding 24,740 shares valued at approximately $4.95 million. Institutional investors collectively own 65.27% of NVIDIA.
• NVIDIA reported quarterly EPS of $2.22 and revenue of $96.22 billion, surpassing estimates while revenue more than doubled year over year. The company also authorized a $150 billion share-repurchase program.
• Analyst sentiment remains strongly bullish, with a consensus “Buy” rating and a $321.89 price target, but elevated valuation, potential profit-taking, trade concerns and risks surrounding debt-financed AI spending remain important considerations.

Kendall Capital Management boosted its position in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 23.7% in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 24,740 shares of the computer hardware maker's stock after purchasing an additional 4,741 shares during the period. Kendall Capital Management's holdings in NVIDIA were worth $4,950,000 at the end of the most recent quarter.

Several other large investors have also recently bought and sold shares of the company. LightSquare Wealth Management LLC raised its holdings in NVIDIA by 0.3% in the 2nd quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker's stock valued at $3,741,000 after buying an additional 49 shares during the last quarter. Defender Capital LLC. grew its holdings in NVIDIA by 0.7% during the 2nd quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker's stock worth $1,507,000 after acquiring an additional 50 shares during the last quarter. Kooman & Associates grew its holdings in NVIDIA by 0.6% during the 2nd quarter. Kooman & Associates now owns 8,464 shares of the computer hardware maker's stock worth $1,694,000 after acquiring an additional 50 shares during the last quarter. Roof Eidam Maycock Peralta LLC increased its position in NVIDIA by 0.3% in the 2nd quarter. Roof Eidam Maycock Peralta LLC now owns 18,827 shares of the computer hardware maker's stock valued at $3,767,000 after acquiring an additional 50 shares during the period. Finally, Persium Advisors LLC increased its position in NVIDIA by 3.5% in the 2nd quarter. Persium Advisors LLC now owns 1,466 shares of the computer hardware maker's stock valued at $293,000 after acquiring an additional 50 shares during the period. 65.27% of the stock is currently owned by institutional investors.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: SpaceX may become a major new customer. SpaceX is reportedly seeking approximately $40 billion in debt financing—potentially including bank loans and investment-grade bonds—to purchase NVIDIA GPUs for its AI infrastructure. The proposed transaction would reinforce demand for NVIDIA’s chips, although the debt-funded nature of the purchase raises questions about customer financing risk. Apollo, banks in talks to finance SpaceX's $40 billion Nvidia GPU purchase
• Positive Sentiment: NVIDIA is expanding beyond data centers into PCs and edge AI. Microsoft unveiled the $2,599 Surface Laptop Ultra with an NVIDIA AI chip, while ASUS and other manufacturers began offering RTX Spark-powered systems for local AI workloads. This could broaden NVIDIA’s addressable market and create a new consumer and enterprise revenue stream. Microsoft to sell Surface Laptop Ultra containing Nvidia AI chip
• Positive Sentiment: AI infrastructure adoption remains widespread. NVIDIA-backed Lambda is reportedly targeting up to $4 billion in additional funding ahead of a planned IPO, while robotics, sovereign-AI and cloud-computing companies continue announcing deployments using NVIDIA platforms. These developments support the company’s ecosystem and long-term demand outlook. Nvidia-backed Lambda targets $4 billion raise
• Positive Sentiment: Analyst sentiment remains bullish. Morgan Stanley raised its price target, and consensus estimates cited by analysts imply additional upside. NVIDIA’s prior quarterly earnings beat and more-than-doubling revenue growth continue to support the bullish case.
• Neutral Sentiment: Market conditions are mixed. Rising oil prices tied to renewed Strait of Hormuz tensions pressured broader equities, while investors also remained focused on interest rates and Federal Reserve minutes.
• Negative Sentiment: Valuation and concentration risks are becoming more prominent. NVIDIA is approaching a $6 trillion market capitalization after a powerful rally, increasing the potential for profit-taking. Michael Burry has reportedly shifted to longer-dated put options on NVIDIA, citing the risk of an eventual AI downturn.
• Negative Sentiment: Trade and execution risks could weigh on the shares. Fresh tariff threats and concerns about margin compression, inventory levels and the sustainability of debt-financed AI spending are tempering enthusiasm. Investors may also be reluctant to chase the stock near record highs without evidence that earnings growth can continue to exceed elevated expectations.

Analyst Ratings Changes

A number of brokerages have recently commented on NVDA. KeyCorp reiterated an "overweight" rating and set a $330.00 price target on shares of NVIDIA in a report on Monday, August 24th. HSBC lifted their target price on NVIDIA from $360.00 to $365.00 in a report on Thursday, August 27th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating on shares of NVIDIA in a research note on Monday, August 31st. Wells Fargo & Company set a $210.00 price objective on NVIDIA in a research report on Friday, October 2nd. Finally, JPMorgan Chase & Co. lifted their price objective on NVIDIA from $280.00 to $320.00 and gave the stock an "overweight" rating in a research note on Thursday, August 27th. Four analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus price target of $321.89.

NVIDIA Stock Performance

Shares of NVIDIA stock opened at $237.36 on Thursday. The business has a 50-day moving average price of $221.38 and a two-hundred day moving average price of $208.88. NVIDIA Corporation has a 1-year low of $164.27 and a 1-year high of $243.37. 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 company has a market cap of $5.72 trillion, a P/E ratio of 30.01, a PEG ratio of 1.85 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The company had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. During the same period in the previous year, the business earned $1.05 EPS. The firm's revenue was up 105.9% compared to the same quarter last year. As a group, analysts anticipate that NVIDIA Corporation will post 9.25 EPS for the current year.

NVIDIA Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were paid a $0.25 dividend. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.4%. NVIDIA's payout ratio is 12.64%.

NVIDIA declared that its board has authorized a share repurchase program on Monday, September 28th that permits the company to buyback $150.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to repurchase up to 2.8% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's board believes its shares are undervalued.

Insider Transactions at NVIDIA

In related news, CFO Colette Kress sold 34,918 shares of the stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the transaction, the chief financial officer directly owned 765,103 shares of the company's stock, valued at $167,595,812.15. This represents a 4.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy S. Teter sold 30,460 shares of the firm's stock in a transaction on Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the completion of the sale, the executive vice president owned 2,687,660 shares of the company's stock, valued at $598,810,648. The trade was a 1.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,766,118 shares of company stock valued at $399,450,353 in the last quarter. 3.94% of the stock is currently owned by company insiders.

NVIDIA Company 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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