Matthew 25 Management Corp Sells 13,000 Shares of NVIDIA Corporation $NVDA

Key Points

• Matthew 25 Management Corp trimmed its NVIDIA stake by 3% in the fourth quarter, selling 13,000 shares and ending with 425,000 shares worth about $79.3 million. NVIDIA remains the fund’s largest holding, making up roughly 24.2% of its portfolio.
• Analysts and investors remain broadly upbeat on NVIDIA after its latest earnings beat, with several firms raising price targets and citing strong AI demand. The company also posted revenue of $81.62 billion, up 85.2% year over year, and EPS of $1.87 versus expectations of $1.76.
• NVIDIA’s board approved an $80 billion share repurchase program and the company increased its quarterly dividend to $0.25 from $0.01. These moves signal management confidence, even as some concerns persist about valuation and geopolitical risk tied to China exposure.

Matthew 25 Management Corp reduced its position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 3.0% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 425,000 shares of the computer hardware maker's stock after selling 13,000 shares during the quarter. NVIDIA comprises about 24.2% of Matthew 25 Management Corp's portfolio, making the stock its biggest position. Matthew 25 Management Corp's holdings in NVIDIA were worth $79,262,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Brighton Jones LLC raised its stake in shares of NVIDIA by 12.4% in the fourth quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker's stock worth $43,631,000 after purchasing an additional 35,815 shares during the last quarter. Bank Pictet & Cie Europe AG raised its stake in shares of NVIDIA by 1.0% in the fourth quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker's stock worth $315,100,000 after purchasing an additional 22,929 shares during the last quarter. Highview Capital Management LLC DE raised its stake in shares of NVIDIA by 6.7% in the fourth quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker's stock worth $7,842,000 after purchasing an additional 3,653 shares during the last quarter. Hudson Value Partners LLC raised its stake in shares of NVIDIA by 30.7% in the fourth quarter. Hudson Value Partners LLC now owns 50,658 shares of the computer hardware maker's stock worth $6,805,000 after purchasing an additional 11,900 shares during the last quarter. Finally, Wealth Group Ltd. raised its stake in shares of NVIDIA by 15.7% in the first quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker's stock worth $715,000 after purchasing an additional 896 shares during the last quarter. 65.27% of the stock is owned by institutional investors and hedge funds.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Wall Street analysts remain constructive after earnings, with Truist raising its price target to $307 and Tigress Financial lifting its target to $425, citing NVIDIA’s dominant position in AI hardware and strong growth outlook.
• Positive Sentiment: Management’s Taiwan expansion plan is reinforcing the long-term AI demand story. NVIDIA said it plans to spend about $150 billion a year in Taiwan and build a new headquarters there, underscoring confidence in the supply chain and future production capacity.
• Positive Sentiment: Recent commentary continues to frame NVIDIA as a key beneficiary of the AI infrastructure buildout, with articles pointing to ongoing shortages in memory, networking, and power as evidence that demand for NVIDIA’s Blackwell systems remains very strong.
• Neutral Sentiment: Several articles highlight Jensen Huang’s growing influence and visibility, including reports that he may join the advisory board of Tsinghua University and that he is now among the world’s richest people. These are notable but not direct stock catalysts.
• Neutral Sentiment: A number of pieces focus on broader AI ecosystem developments, including Groq’s fundraising, IREN’s Blackwell purchase, and other semiconductor names benefiting from the AI trade. These reinforce sector momentum but are mostly indirect for NVDA.
• Negative Sentiment: Some investors are worried NVIDIA’s valuation has become stretched and that the AI trade may be crowded, with bearish commentary warning that a lot of good news may already be priced in.
• Negative Sentiment: There are also geopolitical and regulatory concerns, including reports of possible NVIDIA chip smuggling to China via Japan, which could revive scrutiny around export controls and China exposure.

NVIDIA Stock Performance

NASDAQ:NVDA opened at $214.25 on Friday. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The business has a fifty day simple moving average of $198.67 and a two-hundred day simple moving average of $189.55. NVIDIA Corporation has a 1 year low of $132.92 and a 1 year high of $236.54. The company has a market capitalization of $5.18 trillion, a P/E ratio of 32.81, a P/E/G ratio of 0.51 and a beta of 2.25.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The business had revenue of $81.62 billion during the quarter, compared to the consensus estimate of $78.42 billion. During the same period last year, the business posted $0.81 earnings per share. The business's revenue for the quarter was up 85.2% on a year-over-year basis. On average, analysts expect that NVIDIA Corporation will post 8.04 earnings per share for the current year.

NVIDIA declared that its board has approved a share repurchase plan on Wednesday, May 20th that permits the company to repurchase $80.00 billion in shares. This repurchase authorization permits the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its shares are undervalued.

NVIDIA Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Thursday, June 4th will be issued a $0.25 dividend. The ex-dividend date of this dividend is Thursday, June 4th. This is an increase from NVIDIA's previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. NVIDIA's dividend payout ratio is 0.61%.

Insider Transactions at NVIDIA

In other news, Director Aarti S. Shah sold 19,000 shares of the firm's stock in a transaction on Thursday, March 19th. The stock was sold at an average price of $176.71, for a total value of $3,357,490.00. Following the completion of the transaction, the director directly owned 36,007 shares of the company's stock, valued at $6,362,796.97. This trade represents a 34.54% 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, EVP Ajay K. Puri sold 300,000 shares of the firm's stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $182.25, for a total value of $54,675,000.00. Following the completion of the transaction, the executive vice president directly owned 3,018,547 shares of the company's stock, valued at $550,130,190.75. The trade was a 9.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 906,336 shares of company stock valued at $162,802,518. 3.94% of the stock is currently owned by company insiders.

Analyst Ratings Changes

A number of equities analysts have issued reports on the stock. Bank of America reaffirmed a "buy" rating and set a $350.00 price objective (up from $320.00) on shares of NVIDIA in a report on Thursday, May 21st. Raymond James Financial reiterated a "strong-buy" rating and issued a $330.00 target price on shares of NVIDIA in a report on Thursday, May 21st. BNP Paribas Exane boosted their price target on shares of NVIDIA from $270.00 to $285.00 and gave the stock an "outperform" rating in a report on Thursday, May 21st. Needham & Company LLC restated a "buy" rating and set a $270.00 price target (up from $240.00) on shares of NVIDIA in a report on Thursday, May 21st. Finally, Benchmark restated a "buy" rating and set a $335.00 price target (up from $250.00) on shares of NVIDIA in a report on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, forty-seven have given a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Buy" and an average target price of $305.38.

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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