NVIDIA Corporation $NVDA is Dorsey Wright & Associates' 2nd Largest Position

Key Points

• Dorsey Wright & Associates trimmed its NVIDIA stake by 2.6% in the fourth quarter, but NVIDIA still ranks as its 2nd-largest holding and makes up about 3.8% of the fund’s portfolio.
• Wall Street remains upbeat on NVIDIA, with analysts issuing mostly Buy ratings and a consensus price target of $305.67, even as some reports note growing competition and potential margin pressure from heavy AI spending.
• NVIDIA continues to post strong fundamentals, reporting $1.87 EPS and $81.61 billion in quarterly revenue, while also raising its dividend and authorizing an $80 billion share buyback.

Dorsey Wright & Associates lowered its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 2.6% in the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 88,736 shares of the computer hardware maker's stock after selling 2,411 shares during the quarter. NVIDIA makes up approximately 3.8% of Dorsey Wright & Associates' holdings, making the stock its 2nd biggest position. Dorsey Wright & Associates' holdings in NVIDIA were worth $17,392,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the business. Longfellow Investment Management Co. LLC lifted its position in shares of NVIDIA by 47.9% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock valued at $33,000 after buying an additional 67 shares in the last quarter. Inspire Investing LLC purchased a new stake in NVIDIA in the 4th quarter worth approximately $44,000. AlphaCentric Advisors LLC bought a new stake in NVIDIA during the 4th quarter worth approximately $45,000. Spurstone Advisory Services LLC bought a new stake in shares of NVIDIA during the 2nd quarter valued at $40,000. Finally, Syntax Research Inc. lifted its stake in shares of 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 buying an additional 100 shares in the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on NVDA shares. KeyCorp set a $310.00 price target on NVIDIA and gave the stock an "overweight" rating in a research note on Thursday, May 21st. Weiss Ratings reiterated a "buy (b)" rating on shares of NVIDIA in a research report on Friday, April 10th. Wolfe Research reissued an "outperform" rating and set a $275.00 target price 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 target (up from $250.00) on shares of NVIDIA in a report on Wednesday, May 20th. Finally, Daiwa Securities Group upped their price target on NVIDIA from $215.00 to $255.00 and gave the stock an "outperform" rating in a research note on Friday, May 22nd. Three 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's stock. According to MarketBeat, the stock presently has an average rating of "Buy" and a consensus target price of $305.67.

NVIDIA News Summary

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?

NVIDIA Stock Performance

Shares of NVDA opened at $210.69 on Friday. NVIDIA Corporation has a twelve month low of $142.03 and a twelve month high of $236.54. The company 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 current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. The company's fifty day simple moving average is $209.90 and its 200-day simple moving average is $192.38.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings results 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 analysts' expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm's revenue for the quarter was up 85.2% compared to the same quarter last year. During the same period in the previous year, the company earned $0.81 EPS. As a group, analysts expect that NVIDIA Corporation will post 8.65 EPS for the current year.

NVIDIA Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. This is a boost from NVIDIA's previous quarterly dividend of $0.01. The ex-dividend date is Thursday, June 4th. NVIDIA's dividend payout ratio (DPR) is presently 15.31%.

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

Insider Activity

In other news, Director John Dabiri sold 625 shares of the stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total value of $133,750.00. Following the sale, the director directly owned 14,163 shares in the company, valued at approximately $3,030,882. This represents a 4.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 500,000 shares of NVIDIA stock in a transaction 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 sale, the director owned 6,399,771 shares of the company's stock, valued at approximately $1,406,861,658.93. This trade represents a 7.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 1,016,125 shares of company stock valued at $224,582,565. 3.94% of the stock is currently owned by insiders.

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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