Lee Johnson Capital Management LLC Reduces Holdings in NVIDIA Corporation $NVDA

Key Points

• Lee Johnson Capital Management reduced its NVIDIA stake by 13.1% in the second quarter, selling 4,730 shares and retaining 31,378 shares valued at approximately $6.28 million.
• NVIDIA reported strong quarterly results, with EPS of $2.22 and revenue of $96.22 billion, up 105.9% year over year and above analyst expectations.
• The company authorized a $150 billion share-repurchase program, while analysts maintained a consensus “Buy” rating and a $324.14 average price target.

Lee Johnson Capital Management LLC reduced its stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 13.1% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 31,378 shares of the computer hardware maker's stock after selling 4,730 shares during the period. NVIDIA accounts for approximately 2.0% of Lee Johnson Capital Management LLC's holdings, making the stock its 15th biggest position. Lee Johnson Capital Management LLC's holdings in NVIDIA were worth $6,278,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also made changes to their positions in NVDA. Lifetime Wealth Management P.C. acquired a new stake in NVIDIA in the fourth quarter worth approximately $26,000. Longview Financial Advisors Inc. acquired a new position in shares of NVIDIA during the 1st quarter valued at $27,000. Langley Wealth Management LLC bought a new stake in shares of NVIDIA in the 2nd quarter worth $34,000. Phillip James Consulting Co. acquired a new position in NVIDIA during the first quarter worth about $40,000. Finally, Frankly Finances LLC acquired a new position in NVIDIA during the second quarter worth about $60,000. 65.27% of the stock is currently owned by institutional investors.

NVIDIA Stock Performance

NVIDIA stock opened at $228.38 on Thursday. NVIDIA Corporation has a fifty-two week low of $164.27 and a fifty-two week high of $236.54. The firm's 50 day simple moving average is $217.76 and its 200-day simple moving average is $206.94. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The company has a market cap of $5.50 trillion, a P/E ratio of 28.87, a price-to-earnings-growth ratio of 1.76 and a beta of 2.22.

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

NVIDIA Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be issued a $0.25 dividend. The ex-dividend date is Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.4%. NVIDIA's dividend payout ratio is presently 12.64%.

NVIDIA announced that its board has initiated a share repurchase program on Monday, September 28th that authorizes the company to repurchase $150.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to repurchase up to 2.8% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's board of directors believes its shares are undervalued.

Analyst Ratings Changes

A number of brokerages have weighed in on NVDA. Evercore set a $465.00 price target on shares of NVIDIA and gave the company an "outperform" rating in a report on Thursday, August 27th. HSBC lifted their price objective on shares of NVIDIA from $360.00 to $365.00 in a research note on Thursday, August 27th. Zacks Research raised shares of NVIDIA from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 21st. Raymond James Financial set a $515.00 target price on shares of NVIDIA and gave the stock a "strong-buy" rating in a report on Thursday, August 27th. Finally, Royal Bank Of Canada lifted their price target on shares of NVIDIA from $300.00 to $330.00 and gave the stock an "outperform" rating in a research report on Thursday, August 27th. Four analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Buy" and a consensus price target of $324.14.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA authorized an additional $150 billion for share repurchases, raising total remaining authorization to approximately $235 billion through fiscal 2028. The move signals management’s confidence in the company’s cash generation and suggests it views the stock as attractively valued. Stock Market Today, Sept. 30: Nvidia Authorizes $150B Buyback, Lifting Total to $235B
• Positive Sentiment: The latest bullish case centers on sustained AI spending. NVIDIA’s data-center revenue reportedly surged 117% year over year to $89 billion, while management continues to forecast substantial growth despite the company’s enormous scale. Analysts cited valuation, hyperscaler capital expenditures and the company’s full-stack AI platform as potential upside drivers. Nvidia's Demand Outlook Still Supports The Bull Case
• Positive Sentiment: Political and regulatory developments were also favorable. President Donald Trump reportedly supported industry self-regulation at a White House AI meeting attended by CEO Jensen Huang, reducing near-term concerns that stricter rules could slow AI deployment. NVIDIA’s new AI safety platform could further support demand for inference, monitoring and networking infrastructure. Nvidia Was the Big Winner of Trump's AI Lunch, Here's Why
• Positive Sentiment: NVIDIA’s reported agreement to acquire Hugging Face for nearly $13 billion would expand its reach into open-source models, developer tools, datasets and AI distribution. The company is also investing in AI infrastructure partners, reinforcing its broader ecosystem strategy beyond GPUs. Nvidia just spent nearly $13 billion on something other than GPUs
• Neutral Sentiment: Softer-than-expected inflation helped support growth-oriented technology shares by reducing immediate expectations for additional Federal Reserve rate increases. However, higher interest rates remain a key valuation risk for AI-linked stocks. Why is Nvidia stock rising on Wednesday?
• Negative Sentiment: Risks remain around an AI spending slowdown, particularly if hyperscalers reduce capital expenditures. DeepSeek’s work with Huawei on software for alternative AI chips could also challenge NVIDIA’s software moat, while rising memory and networking costs may pressure gross margins. Investor Michael Burry’s reported bearish options position adds to skepticism, although it has not changed the company’s fundamental outlook. If AI Capex Cracks, Nvidia Could Feel It Before Meta Does

Insider Transactions at NVIDIA

In related news, CFO Colette Kress sold 34,918 shares of the company's stock in a transaction on Thursday, September 17th. The stock was 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 approximately $167,595,812.15. The trade was a 4.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the stock in a transaction dated 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 of the company's stock, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,766,118 shares of company stock valued at $399,450,353 over the last quarter. Company insiders own 3.94% of the company's stock.

NVIDIA 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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