NVIDIA Corporation $NVDA Position Lifted by RIHO Partners LLC

Key Points

• RIHO Partners increased its NVIDIA position by 32.3% in the second quarter, owning 86,461 shares worth approximately $17.3 million. NVIDIA now represents 9.7% of the firm’s portfolio, while institutional investors collectively own 65.27% of the stock.
• NVIDIA reported strong quarterly results, with revenue rising 105.9% year over year to $96.22 billion and EPS of $2.22, beating analyst estimates. The company also authorized a $150 billion share-repurchase program and maintains a $0.25 quarterly dividend.
• Despite strong analyst support and continued AI ecosystem expansion, NVIDIA faces competitive and geopolitical risks, including cheaper rival AI chips and declining China market share. Company insiders have sold 1.77 million shares worth about $399.5 million over the past 90 days.

RIHO Partners LLC raised its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 32.3% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 86,461 shares of the computer hardware maker's stock after buying an additional 21,127 shares during the period. NVIDIA comprises approximately 9.7% of RIHO Partners LLC's investment portfolio, making the stock its 5th biggest position. RIHO Partners LLC's holdings in NVIDIA were worth $17,300,000 at the end of the most recent quarter.

A number of other hedge funds have also recently modified their holdings of NVDA. Lifetime Wealth Management P.C. bought a new stake in shares of NVIDIA during the fourth quarter worth $26,000. Longview Financial Advisors Inc. purchased a new stake in shares of NVIDIA during the first quarter valued at $27,000. Langley Wealth Management LLC bought a new position in shares of NVIDIA in the second quarter worth about $34,000. Phillip James Consulting Co. bought a new position in shares of NVIDIA in the first quarter worth about $40,000. Finally, Bard Associates Inc. grew its holdings in shares of NVIDIA by 8,866.7% in the second quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker's stock worth $54,000 after purchasing an additional 266 shares during the last quarter. 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: NVIDIA announced a five-year, $250 million compute commitment to support U.K. AI safety and security research. The initiative strengthens NVIDIA’s relationships with governments, universities and AI developers while promoting its hardware and software ecosystem. NVIDIA pledges $250 million to boost UK AI safety research
• Positive Sentiment: New ecosystem announcements highlighted continued demand for NVIDIA technology. LSEG is using NVIDIA GPUs to accelerate historical market-data processing, while NVIDIA introduced tools including cuPotential for molecular simulation and expanded collaborations in AI-defined chip manufacturing. LSEG teams up with NVIDIA for faster market data processing
• Positive Sentiment: State Street launched a sector ETF designed to give NVIDIA a 20.93% allocation, above the 15.41% weighting in its comparable fund, potentially creating incremental demand for NVDA shares. New State Street Sector ETFs Give Biggest Stocks Full Weight
• Neutral Sentiment: CEO Jensen Huang said NVIDIA would stop supplying chips to customers developing unsafe AI systems. The stance may improve regulatory and reputational positioning, although broader AI-safety concerns could increase scrutiny of the company and industry. Nvidia, Anthropic Weigh In On AI Safeguards
• Negative Sentiment: Investors are assessing competitive threats from Microsoft’s Maia 300 architecture and Intel’s lower-cost, air-cooled Crescent Island inference GPU. Custom accelerators and cheaper inference solutions could pressure NVIDIA’s pricing, growth assumptions and market share over time. Microsoft Just Unveiled a Brand-New AI Chip
• Negative Sentiment: IDC reportedly estimates NVIDIA’s China AI-chip market share has fallen to 34% as Huawei gains ground, underscoring export restrictions and rising local competition. Separately, investor Michael Burry is betting against chip stocks, reinforcing valuation and AI-spending concerns. NVIDIA’s China AI chip market share falls to 34%

Insider Buying and Selling at NVIDIA

In other news, CFO Colette Kress sold 34,918 shares of the firm's stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $219.05, for a total value of $7,648,787.90. Following the transaction, the chief financial officer directly owned 765,103 shares of the company's stock, valued at approximately $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy S. Teter sold 30,460 shares of the company's stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the sale, the executive vice president owned 2,687,660 shares of the company's stock, valued at $598,810,648. This trade represents a 1.12% 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. In the last 90 days, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Corporate insiders own 3.94% of the company's stock.

NVIDIA Stock Performance

Shares of NVDA stock opened at $221.30 on Thursday. The firm has a market capitalization of $5.33 trillion, a price-to-earnings ratio of 27.98, a price-to-earnings-growth ratio of 1.77 and a beta of 2.22. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The business has a fifty day moving average of $223.43 and a 200 day moving average of $210.73. NVIDIA Corporation has a 1 year low of $164.27 and a 1 year high of $243.37.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating 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 during the quarter, compared to analysts' expectations of $92.27 billion. During the same quarter in the previous year, the firm posted $1.05 EPS. The company's revenue for the quarter was up 105.9% on a year-over-year basis. As a group, research analysts expect that NVIDIA Corporation will post 9.25 earnings per share for the current year.

NVIDIA declared that its board has approved a share repurchase plan on Monday, September 28th that allows the company to buy back $150.00 billion in shares. This repurchase authorization allows the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Stock repurchase plans are generally an indication that the company's leadership believes its stock is undervalued.

NVIDIA Announces Dividend

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

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on NVDA. Oppenheimer set a $315.00 price target on NVIDIA and gave the company an "outperform" rating in a report on Thursday, August 27th. Cantor Fitzgerald reissued an "overweight" rating and issued a $350.00 price objective on shares of NVIDIA in a research note on Thursday, October 1st. TD Cowen restated a "buy" rating on shares of NVIDIA in a report on Tuesday, August 18th. BNP Paribas Exane reaffirmed an "outperform" rating and set a $345.00 target price on shares of NVIDIA in a research report on Monday, October 5th. Finally, UBS Group reaffirmed a "buy" rating on shares of NVIDIA in a research report on Friday, October 9th. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Buy" and an average price target of $321.89.

About NVIDIA

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company's products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

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