NVIDIA Corporation $NVDA Holdings Lowered by Franchise GP Ltd

Key Points

• Franchise GP Ltd cut its NVIDIA stake by 69.8% in the second quarter, selling 227,751 shares and retaining 98,619 shares worth approximately $19.7 million. Institutional investors still own about 65.3% of NVIDIA.
• NVIDIA reported exceptionally strong results, with quarterly revenue of $96.2 billion, up 105.9% year over year, and earnings of $2.22 per share, exceeding estimates. AI infrastructure demand remains robust, supported by expected growth in data centers and expansions by companies such as Microsoft.
• Despite bullish analyst sentiment and a $80 billion buyback authorization, investors face risks from elevated valuation, insider selling, potential DOJ scrutiny of the Groq licensing arrangement, competition, and broader macroeconomic pressure on technology stocks.

Franchise GP Ltd reduced its stake in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 69.8% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 98,619 shares of the computer hardware maker's stock after selling 227,751 shares during the quarter. NVIDIA comprises approximately 9.2% of Franchise GP Ltd's portfolio, making the stock its 4th largest holding. Franchise GP Ltd's holdings in NVIDIA were worth $19,733,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also recently bought and sold shares of the stock. Lifetime Wealth Management P.C. purchased a new stake in shares of NVIDIA in the 4th quarter valued at about $26,000. Longview Financial Advisors Inc. purchased a new position in NVIDIA during the 1st quarter worth approximately $27,000. Longfellow Investment Management Co. LLC increased its position in NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock worth $33,000 after buying an additional 67 shares during the period. Phillip James Consulting Co. purchased a new stake in NVIDIA in the first quarter valued at approximately $40,000. Finally, Spurstone Advisory Services LLC purchased a new stake in NVIDIA in the second quarter valued at approximately $40,000. 65.27% of the stock is owned by hedge funds and other institutional investors.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s AI growth outlook remains exceptionally strong. CEO Jensen Huang said revenue could grow roughly 70% next year, while the company’s next-generation Rubin platform is already shipping. Recent quarterly revenue reached $96.2 billion, up about 106% year over year, exceeding estimates and reinforcing expectations for continued data-center demand. Nvidia Has $96 Billion in Quarterly Revenue
• Positive Sentiment: Microsoft reportedly plans to more than triple its data-center capacity, a potentially significant demand catalyst for NVIDIA’s GPUs, networking products and full-stack systems. Strong August revenue growth at manufacturing partner TSMC also signals that AI-chip orders remain robust. Microsoft Data Center Expansion
• Positive Sentiment: NVIDIA is expanding its ecosystem through a planned Australian AI-infrastructure buildout of up to 2 gigawatts by 2027, partnerships with Palantir for sovereign supply-chain AI, and adoption of its chip-linking technology by d-Matrix. These initiatives broaden demand beyond traditional hyperscalers. Australian AI Infrastructure Expansion
• Neutral Sentiment: Competition and valuation remain investor concerns. Positron AI raised $875 million to develop memory-based inference technology that could challenge NVIDIA’s software and hardware advantage, while AMD and Broadcom are being promoted as alternative AI investments. High Treasury yields also make NVIDIA’s elevated valuation more difficult to justify.
• Negative Sentiment: The Justice Department is reportedly investigating whether NVIDIA’s licensing arrangement with AI-chip startup Groq was structured to avoid antitrust scrutiny. Any regulatory action could limit strategic flexibility or increase legal uncertainty. DOJ Groq Licensing Investigation
• Negative Sentiment: Insider selling is weighing on sentiment: director Mark Stevens reportedly sold hundreds of thousands of shares, and broader recent filings show substantial insider sales with no reported purchases. The transactions do not prove weakening fundamentals, but they can encourage profit-taking after the stock’s strong rally.
• Negative Sentiment: Higher oil prices, rising bond yields and a hotter inflation reading have pressured technology stocks broadly. These macro forces, combined with concerns about AI-capital-spending sustainability and fresh regulatory scrutiny, help explain why NVIDIA has decreased despite strong company-specific news.

Insiders Place Their Bets

In other NVIDIA news, Director Mark Stevens sold 622,239 shares of the business's stock in a transaction 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 directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Timothy Teter sold 30,000 shares of the company's stock in a transaction on Monday, August 31st. The stock was sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at approximately $585,587,360.80. This trade represents a 1.10% 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. In the last three months, insiders sold 2,585,740 shares of company stock valued at $571,015,527. 3.94% of the stock is owned by corporate insiders.

NVIDIA Price Performance

Shares of NVDA opened at $218.36 on Friday. 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 stock's 50 day moving average is $212.82 and its two-hundred day moving average is $203.23. NVIDIA Corporation has a twelve month low of $164.27 and a twelve month high of $236.54. The firm has a market capitalization of $5.26 trillion, a PE ratio of 27.61, a P/E/G ratio of 1.75 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, beating the consensus estimate of $2.09 by $0.13. The business had revenue of $96.22 billion during the quarter, compared to analysts' expectations of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The company's quarterly revenue was up 105.9% compared to the same quarter last year. During the same period last year, the firm earned $1.05 EPS. Research analysts anticipate that NVIDIA Corporation will post 9.1 earnings per share for the current year.

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

NVIDIA Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be given a $0.25 dividend. The ex-dividend date is Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA's dividend payout ratio is presently 12.64%.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on NVDA. Craig Hallum raised their target price on shares of NVIDIA from $245.00 to $275.00 and gave the stock a "buy" rating in a research report on Thursday, May 21st. Daiwa Securities Group upped their price target on shares of NVIDIA from $215.00 to $255.00 and gave the company an "outperform" rating in a research report on Friday, May 22nd. HSBC increased their price target on shares of NVIDIA from $360.00 to $365.00 in a research note on Thursday, August 27th. KeyCorp reissued an "overweight" rating and set a $330.00 price objective on shares of NVIDIA in a research report on Monday, August 24th. Finally, Needham & Company LLC restated a "buy" rating and issued a $300.00 price objective on shares of NVIDIA in a research note on Friday, September 4th. Two equities research analysts have rated the stock with a Strong Buy rating, fifty-one have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Buy" and a consensus target price 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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