McAdam LLC Grows Stock Position in NVIDIA Corporation $NVDA

Key Points

• McAdam LLC increased its NVIDIA position by 6.1% in the second quarter to 120,319 shares valued at approximately $24.1 million. Institutional investors and hedge funds collectively own 65.27% of NVIDIA.
• NVIDIA reported stronger-than-expected quarterly results, including $2.22 in EPS and $96.22 billion in revenue, with revenue up 105.9% year over year. Analysts maintain a broadly bullish view, with an average price target of $324.34 versus the reported share price of $225.51.
• Key risks include elevated valuation sensitivity to higher interest rates, rising memory costs that could pressure margins, uncertain China sales due to export controls, and significant recent insider selling.

McAdam LLC lifted its holdings in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 6.1% in the 2nd quarter, according to its most recent 13F filing with the SEC. The firm owned 120,319 shares of the computer hardware maker's stock after purchasing an additional 6,870 shares during the quarter. NVIDIA comprises 0.9% of McAdam LLC's holdings, making the stock its 9th biggest position. McAdam LLC's holdings in NVIDIA were worth $24,075,000 as of its most recent SEC filing.

Other hedge funds have also recently bought and sold shares of the company. Bank of America Corp DE raised its stake in shares of NVIDIA by 2.1% in the 1st quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker's stock valued at $33,345,453,000 after purchasing an additional 4,019,505 shares during the period. Invesco Ltd. raised its position in NVIDIA by 0.3% in the 4th quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker's stock valued at $26,714,167,000 after buying an additional 446,178 shares during the last quarter. Amundi raised its position in NVIDIA by 10.4% in the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock valued at $23,329,141,000 after buying an additional 12,575,177 shares during the last quarter. J. Stern & Co. LLP lifted its stake in NVIDIA by 13,709.1% in the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker's stock valued at $23,454,297,000 after acquiring an additional 124,849,603 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in NVIDIA by 0.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker's stock valued at $16,479,126,000 after acquiring an additional 555,221 shares in the last quarter. 65.27% of the stock is currently owned by institutional investors and hedge funds.

NVIDIA Stock Down 1.5%

NVDA stock opened at $225.51 on Thursday. NVIDIA Corporation has a 1-year low of $164.27 and a 1-year high of $236.54. The business's 50 day simple moving average is $215.73 and its 200 day simple moving average is $205.39. 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 firm has a market capitalization of $5.43 trillion, a PE ratio of 28.51, a PEG ratio of 1.77 and a beta of 2.22.

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

NVIDIA Announces Dividend

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

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Demand for NVIDIA’s AI infrastructure remains strong. Management’s outlook implies roughly 70% revenue growth in fiscal 2028, while analysts and commentary continue to highlight the Vera Rubin product ramp, expanding data-center investment and potential supply constraints as catalysts. NVIDIA demand growth article
• Positive Sentiment: Super Micro Computer began shipping NVIDIA Vera Rubin NVL72 liquid-cooled server racks, providing evidence that NVIDIA’s latest systems are moving into customer deployments and supporting continued hyperscaler capital spending. Super Micro Vera Rubin shipment article
• Positive Sentiment: NVIDIA received a Zacks upgrade to Strong Buy. Other bullish analyses point to its broad AI hardware, networking and software portfolio, while IonQ’s planned quantum-computing deployment at an NVIDIA research center expands the company’s longer-term technology ecosystem. Zacks NVIDIA analysis
• Neutral Sentiment: Potential progress in Trump-Xi discussions could improve NVIDIA’s access to China, where the company’s latest revenue forecast assumes no data-center compute sales. However, export controls and the November tariff-truce deadline leave the opportunity highly uncertain. NVIDIA China sales outlook
• Negative Sentiment: Higher Treasury yields and renewed expectations for a possible October rate increase pressured high-growth technology stocks, making NVIDIA’s elevated valuation more vulnerable to multiple compression.
• Negative Sentiment: Insider-selling reports added to investor caution. EVP Timothy Teter sold approximately $6.8 million of shares under a pre-arranged Rule 10b5-1 plan, while separate coverage described a much larger sale by a senior director without a disclosed prearranged plan. The sales do not establish a fundamental problem but can weigh on sentiment. NVIDIA insider transaction
• Negative Sentiment: Management expects higher memory costs to pressure gross margins, highlighting a shift in AI bottleneck power toward memory and optical-networking suppliers. NVIDIA CEO Jensen Huang also said AI companies should not receive antitrust or liability exemptions, a stance that may increase compliance burdens across the industry. Reuters AI regulation article

Insider Buying and Selling at NVIDIA

In other NVIDIA news, CFO Colette Kress sold 34,918 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the chief financial officer directly owned 765,103 shares in the company, valued at $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of the business's stock in a transaction that occurred on 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 sale, the director 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 position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,766,118 shares of company stock valued at $399,450,353 in the last three months. 3.94% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

NVDA has been the subject of several research reports. President Capital raised their price target on shares of NVIDIA from $295.00 to $330.00 in a research note on Thursday, August 27th. Benchmark reaffirmed a "buy" rating and issued a $335.00 target price on shares of NVIDIA in a research report on Thursday, August 27th. Rothschild & Co Redburn increased their price target on NVIDIA from $300.00 to $325.00 in a research report on Thursday, August 27th. Wells Fargo & Company restated an "overweight" rating and set a $315.00 target price on shares of NVIDIA in a report on Tuesday, August 11th. Finally, Phillip Securities upped their price target on shares of NVIDIA from $285.00 to $300.00 and gave the stock a "buy" rating in a research report on Monday, August 31st. Four analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, NVIDIA currently has an average rating of "Buy" and an average price target of $324.34.

NVIDIA Company Profile

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company's offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.

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