NVIDIA Corporation $NVDA Position Lowered by Montecito Bank & Trust

Key Points

• Montecito Bank & Trust trimmed its NVIDIA position by 1.9% in the third quarter, selling 2,976 shares and retaining 155,835 shares valued at approximately $35.6 million. NVIDIA remains the bank’s largest holding, representing about 5.4% of its portfolio.
• Institutional ownership remains substantial at 65.27%, with several major investors increasing their stakes. Analysts maintain a consensus “Buy” rating and a $321.47 price target, supported by NVIDIA’s strong earnings growth, margins and AI-related opportunities.
• NVIDIA reported quarterly revenue growth of 105.9% and authorized a $150 billion share-repurchase plan. However, competition, the high cost of AI infrastructure and potential spending discipline among hyperscalers remain key risks to the stock.

Montecito Bank & Trust decreased its position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 1.9% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 155,835 shares of the computer hardware maker's stock after selling 2,976 shares during the quarter. NVIDIA makes up approximately 5.4% of Montecito Bank & Trust's portfolio, making the stock its biggest position. Montecito Bank & Trust's holdings in NVIDIA were worth $35,590,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of NVDA. Jupiter Topco LLC bought a new stake in shares of NVIDIA during the second quarter worth about $16,156,076,000. Van ECK Associates Corp increased its stake in shares of NVIDIA by 34.7% in the second quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker's stock valued at $15,176,771,000 after buying an additional 19,522,304 shares during the period. State Street Corp increased its stake in shares of NVIDIA by 1.6% in the second quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker's stock valued at $202,047,568,000 after buying an additional 15,897,836 shares during the period. Amundi raised its holdings in NVIDIA by 10.4% in the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock valued at $23,329,141,000 after buying an additional 12,575,177 shares during the last quarter. Finally, Nykredit A S bought a new position in NVIDIA in the 2nd quarter valued at approximately $2,315,956,000. Institutional investors own 65.27% of the company's stock.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Several investment analyses remain bullish on NVIDIA’s long-term outlook. Its CUDA software ecosystem, scale, high margins and deep customer relationships are viewed as a stronger moat than competitors such as Broadcom and Lam Research. Some analysts believe the shares could still double over the next five to 10 years even if growth moderates. Prediction: Nvidia Will Outperform Broadcom Over the Next 5 Years
• Positive Sentiment: NVIDIA is broadening its opportunity beyond GPUs through CPUs, networking, AI factories, industrial AI, autonomous driving and quantum-computing interfaces. Partnerships involving Pony.ai, inDrive, Schneider Electric and HPE could support additional demand for its full-stack platform. Pony AI, NVIDIA Take Their Robotaxi Ambitions to a New Market
• Positive Sentiment: Erste Group modestly raised its fiscal 2027 and 2028 EPS forecasts, while other commentary highlights NVIDIA’s faster growth, stronger margins and relatively attractive valuation compared with some AI semiconductor peers. Brokers Suggest Investing in Nvidia
• Neutral Sentiment: Some analysts argue NVIDIA may become a relative “safe haven” within the AI trade because of its dependable earnings and dominant position, but this is an investor-rotation thesis rather than a new financial result or confirmed catalyst. Can Nvidia's Stock Become a Safe Haven?
• Negative Sentiment: Seaport Research reiterated a bearish view, citing mounting competition, strategic tension in NVIDIA’s business and substantial financial commitments tied to the AI buildout. This bearish call is the clearest company-specific pressure on the shares. Two Critical Nvidia Stock Flaws
• Negative Sentiment: The recent decline reflects broader concern that hyperscalers and neocloud operators may struggle to finance the hundreds of billions of dollars required for AI data centers. High borrowing costs, funding gaps and possible customer spending discipline are pressuring the entire AI trade, including NVIDIA. Why Nvidia Stock Is Down Over 4%?

Analyst Ratings Changes

Several equities research analysts recently commented on NVDA shares. Wells Fargo & Company set a $210.00 target price on shares of NVIDIA in a research report on Friday, October 2nd. JPMorgan Chase & Co. raised their price target on shares of NVIDIA from $280.00 to $320.00 and gave the company an "overweight" rating in a research note on Thursday, August 27th. Zacks Research raised shares of NVIDIA from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 21st. Royal Bank Of Canada lifted their price target on shares of NVIDIA from $300.00 to $330.00 and gave the stock an "outperform" rating in a report on Thursday, August 27th. Finally, KGI Securities boosted their price objective on shares of NVIDIA from $335.00 to $345.00 in a research note on Thursday, August 27th. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus price target of $321.47.

NVIDIA Price Performance

NVDA stock opened at $210.96 on Monday. The firm has a market cap of $5.08 trillion, a price-to-earnings ratio of 26.67, a PEG ratio of 1.62 and a beta of 2.22. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. NVIDIA Corporation has a 12-month low of $164.27 and a 12-month high of $243.37. The company's fifty day simple moving average is $222.58 and its 200 day simple moving average is $212.80.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping analysts' consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The firm had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. During the same period last year, the business posted $1.05 EPS. The business's revenue was up 105.9% compared to the same quarter last year. On average, analysts expect that NVIDIA Corporation will post 9.30 earnings per share for the current year.

NVIDIA Announces Dividend

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

NVIDIA announced that its board has authorized a stock repurchase plan on Monday, September 28th that authorizes the company to repurchase $150.00 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to purchase up to 2.8% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board of directors believes its shares are undervalued.

Insider Activity at NVIDIA

In related news, EVP Timothy Teter sold 30,460 shares of the firm's stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction 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 transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 34,918 shares of the firm's stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total value of $7,648,787.90. Following the sale, the chief financial officer directly owned 765,103 shares of the company's stock, valued at $167,595,812.15. This represents a 4.36% decrease in their position. 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 have sold a total of 1,766,118 shares of company stock worth $399,450,353 in the last 90 days. Corporate insiders own 3.94% of the company's stock.

NVIDIA Profile

NVIDIA Corporation NASDAQ: NVDA is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.

The company's products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.

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