NVIDIA Corporation $NVDA is Pacer Advisors Inc.'s 2nd Largest Position

Key Points

• Pacer Advisors cut its NVIDIA stake by 2.6% in the fourth quarter, but the position is still huge at 2,973,234 shares valued at about $554.5 million. NVIDIA remains Pacer’s second-largest holding, accounting for 0.8% of its portfolio.
• Wall Street sentiment on NVIDIA remains broadly bullish, with a consensus Buy rating and an average price target of $305.67. Several analysts recently raised targets, though Zacks Research downgraded the stock to Hold.
• NVIDIA reported strong quarterly results, topping EPS and revenue estimates with $1.87 EPS and $81.61 billion in revenue, while also boosting its quarterly dividend and approving an $80 billion share buyback. The company continues to be viewed as a major beneficiary of AI demand despite some concerns about competition and spending pressures.

Pacer Advisors Inc. trimmed its stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 2.6% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 2,973,234 shares of the computer hardware maker's stock after selling 79,663 shares during the quarter. NVIDIA accounts for 0.8% of Pacer Advisors Inc.'s portfolio, making the stock its 2nd biggest holding. Pacer Advisors Inc.'s holdings in NVIDIA were worth $554,508,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also recently modified their holdings of NVDA. State Street Corp grew its position in NVIDIA by 1.2% during the 4th quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker's stock valued at $184,911,111,000 after purchasing an additional 11,451,386 shares during the last quarter. Geode Capital Management LLC raised its holdings in NVIDIA by 0.6% in the fourth quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker's stock worth $109,446,217,000 after buying an additional 3,383,441 shares during the last quarter. Norges Bank bought a new position in shares of NVIDIA in the fourth quarter worth approximately $62,244,133,000. Bank of America Corp DE lifted its stake in shares of NVIDIA by 1.5% in the fourth quarter. Bank of America Corp DE now owns 187,181,484 shares of the computer hardware maker's stock worth $34,909,347,000 after buying an additional 2,849,678 shares in the last quarter. Finally, Legal & General Group Plc grew its holdings in shares of NVIDIA by 1.5% during the third quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker's stock valued at $33,808,862,000 after buying an additional 2,609,560 shares during the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts recently weighed in on the stock. Craig Hallum boosted their price objective on shares of NVIDIA from $245.00 to $275.00 and gave the stock a "buy" rating in a report on Thursday, May 21st. Wedbush lifted their target price on NVIDIA from $300.00 to $330.00 and gave the stock an "outperform" rating in a report on Thursday, May 21st. Zacks Research cut NVIDIA from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 21st. The Goldman Sachs Group reaffirmed a "buy" rating and set a $285.00 price target (up from $250.00) on shares of NVIDIA in a report on Wednesday, May 20th. Finally, Rothschild & Co Redburn increased their price objective on NVIDIA from $280.00 to $300.00 and gave the company a "buy" rating in a research report on Tuesday, May 26th. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus price target of $305.67.

Insiders Place Their Bets

In other news, Director Stephen C. Neal sold 15,500 shares of the firm's stock in a transaction dated 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 transaction, the director owned 116,135 shares of the company's stock, valued at $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director John Dabiri sold 625 shares of NVIDIA stock in a transaction dated 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 in the company, valued at approximately $3,030,882. The trade was a 4.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,016,125 shares of company stock worth $224,582,565 over the last quarter. 3.94% of the stock is currently owned by corporate insiders.

Key NVIDIA News

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 Price Performance

NASDAQ NVDA opened at $210.69 on Friday. The company has a 50-day moving average price of $209.90 and a 200-day moving average price of $192.38. NVIDIA Corporation has a 52 week low of $142.03 and a 52 week high of $236.54. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. The firm has a market capitalization of $5.10 trillion, a P/E ratio of 32.26, a PEG ratio of 0.47 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating 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 analyst estimates of $78.42 billion. During the same period in the previous year, the business posted $0.81 earnings per share. The firm's quarterly revenue was up 85.2% compared to the same quarter last year. Equities research analysts anticipate that NVIDIA Corporation will post 8.65 earnings per share for the current year.

NVIDIA Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Investors 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 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 announced that its Board of Directors has approved a stock buyback plan on Wednesday, May 20th that permits the company to buyback $80.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board of directors believes its shares are undervalued.

NVIDIA Company 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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