Montchanin Asset Management LLC Takes Position in NVIDIA Corporation $NVDA

Key Points

• Montchanin Asset Management LLC bought 7,510 NVIDIA shares worth approximately $1.31 million, making NVDA its 20th-largest holding and representing 1.3% of its portfolio. Institutional investors collectively own 65.27% of the stock.
• Wall Street remains broadly bullish: analysts give NVIDIA an average “Buy” rating with a consensus price target of $304.26, citing strong data-center demand, Blackwell adoption and expected revenue growth.
• NVIDIA’s AI expansion is generating both optimism and scrutiny, with reports of a potential $500 billion infrastructure financing initiative and a possible $3 billion investment in Lancium, while concerns include customer concentration, financing risks and Microsoft developing its own AI chips.

Montchanin Asset Management LLC purchased a new position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 7,510 shares of the computer hardware maker's stock, valued at approximately $1,310,000. NVIDIA accounts for approximately 1.3% of Montchanin Asset Management LLC's investment portfolio, making the stock its 20th largest position.

Several other hedge funds also recently added to or reduced their stakes in NVDA. Lifetime Wealth Management P.C. purchased a new stake in shares of NVIDIA during the 4th quarter valued at about $26,000. Longview Financial Advisors Inc. purchased a new position in NVIDIA in the 1st quarter worth approximately $27,000. Longfellow Investment Management Co. LLC boosted its holdings 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 during the period. Phillip James Consulting Co. acquired a new stake in NVIDIA in the first quarter valued at approximately $40,000. Finally, Inspire Investing LLC acquired a new stake in NVIDIA in the fourth quarter valued at approximately $44,000. 65.27% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA is reportedly partnering with Apollo Global Management, Blackstone, BlackRock’s Global Infrastructure Partners, Brookfield, Goldman Sachs and KKR on an AI infrastructure financing effort targeting up to $500 billion. The initiative could accelerate data-center construction and support future demand for NVIDIA’s GPUs. Nvidia teams up with Wall Street asset managers on $500 billion AI infrastructure push
• Positive Sentiment: Bank of America maintained a Buy rating and $350 price target, projecting second-quarter revenue of $94 billion to $95 billion—potentially $3 billion to $4 billion above NVIDIA’s guidance—and forecasting a “multi-quarter upgrade cycle.” BofA: Nvidia's next earnings report could kick off a multi-quarter upgrade cycle
• Positive Sentiment: Analysts remain constructive ahead of the August 26 earnings report, citing expected $91 billion of quarterly revenue, gross margins near 75%, strong Data Center demand and continued adoption of Blackwell systems. Nvidia: Buy Before Q2 Shows The AI Factory Trade Is Still Early
• Neutral Sentiment: NVIDIA is reportedly considering investing as much as $3 billion in Lancium, an AI data-center power infrastructure company. The investment could strengthen NVIDIA’s ecosystem position, but it also adds to questions about how much capital the chipmaker should devote to investments instead of share buybacks. Nvidia Stock Slips as Its AI Investments Draw Fresh Scrutiny
• Negative Sentiment: Investors are increasingly focused on NVIDIA’s expanding role in financing the AI buildout. Mark Cuban compared the strategy with dot-com-era companies that funded customers, raising concerns that financing could amplify concentration and credit risks if AI spending fails to generate adequate returns. Mark Cuban warned Nvidia's AI financing could crumble the market
• Negative Sentiment: Reports that Microsoft is reconsidering its reliance on NVIDIA in favor of internally developed AI silicon highlight a potential long-term customer-concentration and pricing risk, even though near-term demand remains robust. Microsoft rethinks its Nvidia reliance

Wall Street Analysts Forecast Growth

NVDA has been the topic of a number of recent research reports. Zacks Research raised shares of NVIDIA from a "hold" rating to a "strong-buy" rating in a research report on Monday, July 20th. New Street Research lowered their price target on shares of NVIDIA from $343.00 to $340.00 in a report on Thursday, May 21st. President Capital lifted their price target on shares of NVIDIA from $280.00 to $295.00 and gave the stock a "buy" rating in a research note on Thursday, May 21st. Jefferies Financial Group reiterated a "buy" rating and issued a $300.00 price objective (up from $275.00) on shares of NVIDIA in a report on Thursday, May 21st. Finally, Citigroup began coverage on shares of NVIDIA in a research report on Wednesday, April 15th. They issued a "buy" rating for the company. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Buy" and a consensus target price of $304.26.

Insider Activity

In other NVIDIA news, Director Stephen C. Neal sold 15,500 shares of the company's stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total value 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 document filed with the SEC, which is available at this hyperlink. Also, Director John Dabiri sold 625 shares of the stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the transaction, the director directly owned 14,163 shares of the company's stock, valued at approximately $3,030,882. The trade was a 4.23% 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 1,901,125 shares of company stock worth $410,583,015 over the last three months. Corporate insiders own 3.94% of the company's stock.

NVIDIA Stock Down 2.9%

NVDA stock opened at $217.55 on Tuesday. The firm has a market cap of $5.26 trillion, a price-to-earnings ratio of 33.32, a PEG ratio of 0.44 and a beta of 2.23. NVIDIA Corporation has a 1-year low of $164.07 and a 1-year high of $236.54. The firm has a fifty day moving average price of $205.53 and a two-hundred day moving average price of $197.54. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping analysts' consensus estimates of $1.76 by $0.11. The firm had revenue of $81.61 billion during the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The firm's revenue was up 85.2% on a year-over-year basis. During the same period in the prior year, the business earned $0.81 EPS. Research analysts predict that NVIDIA Corporation will post 8.79 EPS for the current year.

NVIDIA Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Thursday, June 4th were paid a $0.25 dividend. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. This is an increase from NVIDIA's previous quarterly dividend of $0.01. NVIDIA's dividend payout ratio (DPR) is currently 15.31%.

NVIDIA declared that its Board of Directors has authorized a stock buyback plan on Wednesday, May 20th that permits the company to buyback $80.00 billion in shares. This buyback authorization permits the computer hardware maker to reacquire up to 1.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

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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