NVIDIA Corporation $NVDA Holdings Decreased by a16z Perennial Management L.P.

Key Points

• a16z Perennial Management cut its NVIDIA stake by 91.4% in the second quarter, selling 34,015 shares and retaining 3,200 shares worth approximately $640,000. Institutional investors still own 65.27% of NVIDIA.
• NVIDIA reported quarterly revenue of $96.22 billion, up 105.9% year over year, and EPS of $2.22, exceeding analyst expectations. The company also declared a quarterly dividend of $0.25 per share.
• Analysts remain broadly bullish, with a consensus “Buy” rating and an average price target of $324.34, although recent insider sales and risks such as competition, rising memory costs and potential moderation in AI spending remain areas of investor focus.

a16z Perennial Management L.P. reduced its position in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 91.4% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 3,200 shares of the computer hardware maker's stock after selling 34,015 shares during the period. a16z Perennial Management L.P.'s holdings in NVIDIA were worth $640,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in NVDA. Terril Brothers Inc. increased its holdings in shares of NVIDIA by 18.3% during the 2nd quarter. Terril Brothers Inc. now owns 1,975 shares of the computer hardware maker's stock valued at $395,000 after acquiring an additional 305 shares during the last quarter. Stronghold Wealth Management L.L.C. boosted its position in NVIDIA by 2.0% during the second quarter. Stronghold Wealth Management L.L.C. now owns 5,788 shares of the computer hardware maker's stock worth $1,158,000 after purchasing an additional 115 shares during the period. Boston Trust Walden Corp grew its holdings in NVIDIA by 14.5% during the second quarter. Boston Trust Walden Corp now owns 1,262,697 shares of the computer hardware maker's stock valued at $252,653,000 after purchasing an additional 160,300 shares during the last quarter. Bartlett & CO. Wealth Management LLC raised its position in shares of NVIDIA by 1.5% in the second quarter. Bartlett & CO. Wealth Management LLC now owns 1,208,102 shares of the computer hardware maker's stock valued at $241,730,000 after purchasing an additional 18,051 shares during the period. Finally, TCV Trust & Wealth Management Inc. boosted its holdings in shares of NVIDIA by 3.3% during the 2nd quarter. TCV Trust & Wealth Management Inc. now owns 86,886 shares of the computer hardware maker's stock worth $17,385,000 after buying an additional 2,777 shares during the period. Institutional investors own 65.27% of the company's stock.

NVIDIA Stock Performance

Shares of NVDA stock opened at $222.27 on Friday. NVIDIA Corporation has a 52 week low of $164.27 and a 52 week high of $236.54. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The company's 50 day moving average price is $214.66 and its two-hundred day moving average price is $204.29. The company has a market capitalization of $5.36 trillion, a P/E ratio of 28.10, a price-to-earnings-growth ratio of 1.69 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping 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 for the quarter, compared to analyst estimates of $92.27 billion. During the same quarter in the prior year, the company posted $1.05 earnings per share. NVIDIA's revenue was up 105.9% on a year-over-year basis. On average, analysts expect that NVIDIA Corporation will post 9.25 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

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

Insiders Place Their Bets

In related news, Director Mark Stevens sold 622,239 shares of the stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the sale, the director owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This trade represents a 21.03% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Colette Kress sold 34,918 shares of the company's stock in a transaction that occurred 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 owned 765,103 shares of the company's stock, valued at approximately $167,595,812.15. This represents a 4.36% 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 have sold 1,735,658 shares of company stock worth $392,663,865 over the last ninety days. Corporate insiders own 3.94% of the company's stock.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: CEO Jensen Huang said NVIDIA expects to sell roughly twice as many chips next year, reinforcing expectations that hyperscaler spending on AI data centers remains strong. The forecast includes demand for GPUs, CPUs, networking equipment and complete server racks. Nvidia Chip Sales Could Double Next Year, CEO Jensen Huang Says
• Positive Sentiment: Analysts and market commentators increasingly view NVIDIA as attractively valued relative to its growth. Its scale, diversified AI exposure, high profitability and lower forward valuation multiple give it an advantage over peers such as Credo, while some estimates suggest revenue growth could remain near 70% in fiscal 2028. Credo vs. NVIDIA After Earnings
• Positive Sentiment: AI infrastructure demand is expanding beyond processors into high-bandwidth memory and optical networking. NVIDIA has identified memory and silicon photonics as potential bottlenecks and has committed capital and purchase agreements involving suppliers such as Coherent and Lumentum, signaling sustained demand throughout its supply chain.
• Positive Sentiment: New ecosystem activity supports NVIDIA’s long-term growth narrative. Cloud partner CoreWeave is deploying next-generation Vera Rubin clusters, while NVIDIA-backed Nscale filed for a U.S. IPO. NVIDIA technology is also being used in autonomous trading systems, quantum-computing research and planned enterprise augmented-reality products.
• Neutral Sentiment: Speculative initiatives, including potential orbital data centers with SpaceX and NVIDIA’s quantum-computing software, could create future demand but are unlikely to materially affect near-term revenue.
• Negative Sentiment: Investors remain alert to competition from Huawei’s planned 2027 Ascend chips, possible AI-spending deceleration, rising memory costs that could pressure gross margins, and the effects of higher interest rates. The stock’s elevated valuation and dependence on continued hyperscaler capital expenditure also leave it sensitive to disappointing guidance.

Analyst Ratings Changes

Several research analysts recently commented on NVDA shares. Wall Street Zen upgraded shares of NVIDIA from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 29th. KeyCorp reaffirmed an "overweight" rating and issued a $330.00 price target on shares of NVIDIA in a research report on Monday, August 24th. UBS Group set a $300.00 target price on shares of NVIDIA and gave the stock a "buy" rating in a research report on Thursday, August 27th. DZ Bank reiterated a "buy" rating on shares of NVIDIA in a research note on Wednesday, August 26th. Finally, Wells Fargo & Company restated an "overweight" rating and set a $315.00 price target on shares of NVIDIA in a research note on Tuesday, August 11th. Three investment analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus target price of $324.34.

About NVIDIA

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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