NVIDIA Corporation $NVDA is Vest Financial LLC's 5th Largest Position

Key Points

• Vest Financial increased its NVIDIA holdings by 0.8% in the second quarter to 709,640 shares worth approximately $142 million, making NVIDIA its fifth-largest position and 1.5% of its portfolio. Institutional investors collectively own 65.27% of NVIDIA.
• NVIDIA reported strong quarterly results, with earnings of $2.22 per share and revenue of $96.22 billion, up 105.9% year over year and above analyst expectations. Analysts maintain a consensus “Buy” rating with a $324.34 price target.
• The company’s AI growth outlook remains strong but faces risks. Demand for newer Rubin infrastructure, expansion into networking and software, and quantum-computing research support growth, while rising competition, insider selling, elevated valuation and potential AI-spending slowdowns remain concerns.

Vest Financial LLC boosted its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 0.8% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 709,640 shares of the computer hardware maker's stock after acquiring an additional 5,886 shares during the period. NVIDIA comprises 1.5% of Vest Financial LLC's portfolio, making the stock its 5th largest holding. Vest Financial LLC's holdings in NVIDIA were worth $141,992,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently modified their holdings of NVDA. J. Stern & Co. LLP lifted its stake in NVIDIA by 13,709.1% in the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker's stock valued at $23,454,297,000 after buying an additional 124,849,603 shares in the last quarter. PFA Pension Forsikringsaktieselskab purchased a new position in NVIDIA during the fourth quarter worth $2,635,969,000. Amundi raised its holdings in shares of NVIDIA by 10.4% in the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock worth $23,329,141,000 after acquiring an additional 12,575,177 shares during the last quarter. SEB Asset Management AB acquired a new position in shares of NVIDIA in the first quarter worth $1,692,807,000. Finally, Employees Provident Fund Board purchased a new stake in shares of NVIDIA in the fourth quarter valued at $1,243,336,000. Hedge funds and other institutional investors own 65.27% of the company's stock.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Management continues to defend AI spending. CEO Jensen Huang said the AI spending “flywheel” is accelerating and argued that companies, rather than new regulations, should manage AI safety. Meta CEO Mark Zuckerberg broadly supported that view, easing fears that safety concerns could trigger a development pause. NVIDIA CEO Says AI Spending Flywheel Is Really, Really Flying
• Positive Sentiment: Rubin demand is reinforcing the infrastructure story. CoreWeave brought a multi-rack NVIDIA Vera Rubin NVL72 cluster online, connecting hundreds of GPUs for large-scale training and inference. The deployment supports expectations for continued demand beyond Blackwell systems. CoreWeave Stock Gains as Nvidia Rubin Cluster Boosts AI Cloud Capacity
• Positive Sentiment: NVIDIA is expanding beyond GPUs. An energy alliance with Google and Emerald AI aims to make data centers flexible electricity customers, potentially reducing grid constraints that could otherwise limit AI capacity. NVIDIA is also supplying networking and software for Apple’s potential future AI servers. Nvidia and Google Launch Energy Alliance to Prevent AI Grid Overload
• Positive Sentiment: Quantum-computing research adds a longer-term catalyst. NVIDIA’s H200 GPU, CUDA-Q platform and cuQuantum software helped researchers reduce quantum-circuit compilation from minutes to roughly 28 seconds in larger tests, strengthening its position as an infrastructure provider for hybrid computing. IonQ and NVIDIA Just Cracked a Major Quantum Computing Bottleneck
• Neutral Sentiment: Strategic expansion could improve future monetization. Reports describe NVIDIA’s $12.9 billion acquisition of Hugging Face as a way to extend its ecosystem into AI software and models, although the deal may be expensive relative to current revenue and is unlikely to materially affect near-term results. Forget Nvidia’s Chips: Hugging Face Is the Real Reason to Own This Stock Now
• Negative Sentiment: Competition and customer bargaining power remain risks. OpenAI says it has more alternatives to NVIDIA, while AMD is pursuing large-scale chip deployments with major AI developers. Greater supplier choice could pressure NVIDIA’s pricing and market share over time. OpenAI’s CFO Just Explained Why Nvidia Is No Longer the Only Option
• Negative Sentiment: AI slowdown fears have not disappeared. Bearish investor Michael Burry continues to warn of a potential sharp decline in AI-linked stocks, while reports of insider selling and elevated valuation could encourage profit-taking if infrastructure spending moderates. Michael Burry Predicts a Possible 1987-Style Drop

Wall Street Analyst Weigh In

A number of research firms recently commented on NVDA. Wall Street Zen raised NVIDIA from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 29th. Mizuho set a $315.00 target price on shares of NVIDIA and gave the company an "outperform" rating in a research note on Thursday, August 27th. TD Cowen restated a "buy" rating on shares of NVIDIA in a report on Tuesday, August 18th. KeyCorp reaffirmed an "overweight" rating and set a $330.00 price target on shares of NVIDIA in a research note on Monday, August 24th. Finally, HSBC lifted their price target on shares of NVIDIA from $360.00 to $365.00 in a report on Thursday, August 27th. Three equities research analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, NVIDIA presently has a consensus rating of "Buy" and a consensus price target of $324.34.

Insiders Place Their Bets

In other NVIDIA news, Director Mark A. Stevens sold 622,239 shares of the business's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the completion of the sale, the director owned 2,336,531 shares of the company's stock, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Timothy S. Teter sold 30,000 shares of the company's stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $217.88, for a total value of $6,536,400.00. Following the sale, the executive vice president owned 2,687,660 shares of the company's stock, valued at $585,587,360.80. This 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. Over the last 90 days, insiders have sold 1,700,740 shares of company stock valued at $385,015,077. Insiders own 3.94% of the company's stock.

NVIDIA Price Performance

NVDA opened at $213.90 on Thursday. The company's 50 day simple moving average is $214.10 and its 200 day simple moving average is $203.86. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. NVIDIA Corporation has a 1 year low of $164.27 and a 1 year high of $236.54. The stock has a market capitalization of $5.15 trillion, a PE ratio of 27.04, a P/E/G ratio of 1.66 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping the consensus estimate of $2.09 by $0.13. The firm had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. NVIDIA's revenue for the quarter was up 105.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.05 earnings per share. As a group, sell-side analysts expect that NVIDIA Corporation will post 9.12 EPS for the current year.

NVIDIA Dividend Announcement

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

NVIDIA announced that its board has initiated a share buyback program on Wednesday, May 20th that allows the company to buyback $80.00 billion in shares. This buyback authorization allows the computer hardware maker to buy up to 1.5% of its shares through open market purchases. Shares buyback programs are often an indication that the company's board believes its shares are undervalued.

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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