Nolet Wealth Management LLC Buys New Stake in NVIDIA Corporation $NVDA

Key Points

• Nolet Wealth Management opened a new position in NVIDIA, buying 25,754 shares worth about $4.8 million. The stake makes NVIDIA its sixth-largest holding and about 2.7% of its portfolio.
• NVIDIA reported strong quarterly results, with earnings of $1.87 per share on revenue of $81.61 billion, both above analyst estimates. Revenue rose 85.2% year over year, and the company remains highly profitable.
• The board authorized an $80 billion share buyback and raised the quarterly dividend to $0.25 per share, up from $0.01. However, insiders have also been selling shares, including a large sale by director Mark A. Stevens.

Nolet Wealth Management LLC purchased a new position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 25,754 shares of the computer hardware maker's stock, valued at approximately $4,803,000. NVIDIA accounts for approximately 2.7% of Nolet Wealth Management LLC's investment portfolio, making the stock its 6th largest position.

Several other large investors have also recently added to or reduced their stakes in the stock. Longfellow Investment Management Co. LLC grew its position in NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock valued at $33,000 after acquiring an additional 67 shares in the last quarter. Inspire Investing LLC acquired a new position in shares of NVIDIA during the fourth quarter worth $44,000. AlphaCentric Advisors LLC purchased a new position in shares of NVIDIA in the fourth quarter valued at $45,000. Spurstone Advisory Services LLC purchased a new position in shares of NVIDIA in the second quarter valued at $40,000. Finally, Syntax Research Inc. grew its holdings in NVIDIA by 62.5% during the 4th quarter. Syntax Research Inc. now owns 260 shares of the computer hardware maker's stock valued at $49,000 after purchasing an additional 100 shares in the last quarter. 65.27% of the stock is currently owned by institutional investors and hedge funds.

NVIDIA Price Performance

Shares of NVDA stock opened at $210.69 on Friday. The firm has a market cap of $5.10 trillion, a P/E ratio of 32.26, a P/E/G ratio of 0.47 and a beta of 2.22. 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 Corporation has a 1-year low of $142.03 and a 1-year high of $236.54. The firm has a fifty day moving average of $209.90 and a two-hundred day moving average of $192.38.

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 for the quarter, topping the consensus estimate of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company had revenue of $81.61 billion during the quarter, compared to the consensus estimate of $78.42 billion. During the same quarter in the previous year, the firm earned $0.81 EPS. The company's revenue was up 85.2% on a year-over-year basis. As a group, research analysts anticipate that NVIDIA Corporation will post 8.65 earnings per share for the current fiscal year.

NVIDIA announced that its board has authorized a stock repurchase plan on Wednesday, May 20th that allows the company to buyback $80.00 billion in shares. This buyback authorization allows the computer hardware maker to reacquire up to 1.5% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board of directors believes its shares are undervalued.

NVIDIA Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Thursday, June 4th will be issued a $0.25 dividend. This is an increase from NVIDIA's previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, June 4th. NVIDIA's dividend payout ratio is presently 15.31%.

Insider Buying and Selling at NVIDIA

In other news, Director Mark A. Stevens sold 500,000 shares of NVIDIA stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $219.83, for a total value of $109,915,000.00. Following the completion of the transaction, the director owned 6,399,771 shares in the company, valued at approximately $1,406,861,658.93. This trade represents a 7.25% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director John Dabiri sold 625 shares of the business's stock in a transaction that occurred 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 completion of the sale, the director owned 14,163 shares of the company's stock, valued at $3,030,882. This trade represents a 4.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,016,125 shares of company stock worth $224,582,565 over the last quarter. 3.94% of the stock is owned by corporate insiders.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Jensen Huang’s latest comments were interpreted as a sign that demand for NVIDIA’s AI hardware remains strong, reinforcing the view that the company still has room to grow from the AI buildout. 13 Words From Jensen Huang That Spell Good News for Nvidia Shareholders
• Positive Sentiment: Multiple reports highlighted NVIDIA’s expanding AI ecosystem, including XR AI/public beta, physical AI, and new partnerships, which supports the case that NVIDIA is moving beyond data centers into additional growth markets. How NVIDIA (NVDA) Is Extending Its AI Infrastructure Reach Into XR and Physical AI
• Positive Sentiment: NVIDIA was said to have taken the No. 1 spot in data-center Ethernet switching by revenue in Q1, underscoring that its networking business is becoming a more meaningful part of the AI stack. Nvidia takes No. 1 spot in data center ethernet switching by revenue in Q1: IDC
• Positive Sentiment: Analysts and market commentary continued to point to NVIDIA as a leading AI beneficiary versus weaker chip names, with several pieces framing it as a core alternative in the ongoing semiconductor rally. Analyst Warns Intel Valuation ‘Doesn't Make Sense.' Suggests NVIDIA, AMD, Micron, and Broadcom as Alternatives.
• Neutral Sentiment: Several articles noted that AI spending is broadening to suppliers, cloud providers, and custom-chip rivals, suggesting NVIDIA’s dominance is being challenged but not yet displaced. Google Is Using Nvidia's Playbook to Build a Rival AI Chip Business
• Negative Sentiment: There were also warning signs for investors, including commentary that NVIDIA has slipped since its last earnings report and concerns that heavy AI infrastructure spending, debt financing, and competition from Amazon and Google could pressure long-term margins or growth rates. Nvidia (NVDA) Down 4% Since Last Earnings Report: Can It Rebound?

Analyst Ratings Changes

Several equities research analysts recently issued reports on NVDA shares. Wolfe Research reaffirmed an "outperform" rating and set a $275.00 price target on shares of NVIDIA in a research note on Thursday, May 21st. The Goldman Sachs Group reissued a "buy" rating and issued a $285.00 price objective (up from $250.00) on shares of NVIDIA in a research report on Wednesday, May 20th. New Street Research lowered their target price on NVIDIA from $343.00 to $340.00 in a research note on Thursday, May 21st. Seaport Research Partners boosted their price target on NVIDIA from $140.00 to $180.00 and gave the stock a "sell" rating in a research note on Thursday, May 21st. Finally, Needham & Company LLC reissued a "buy" rating and issued a $270.00 price target on shares of NVIDIA in a report on Tuesday, June 2nd. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Buy" and an average target price of $305.67.

About NVIDIA

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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