NVIDIA Corporation $NVDA Position Reduced by Smithbridge Asset Management Inc. DE

Key Points

• Smithbridge Asset Management cut its NVIDIA stake by 37% in the first quarter, but the stock still remained its second-largest holding and accounted for about 3.5% of its portfolio.
• Insider selling has been heavy, with directors Stephen C. Neal and Mark A. Stevens both selling shares recently; insiders have sold 1.9 million shares worth about $410.6 million over the last 90 days.
• Despite the selling activity, Wall Street remains bullish: analysts broadly rate NVIDIA a Buy, and the company recently topped earnings expectations with strong revenue growth and approved an $80 billion share repurchase program.

Smithbridge Asset Management Inc. DE trimmed its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 37.0% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 134,732 shares of the computer hardware maker's stock after selling 79,165 shares during the period. NVIDIA comprises approximately 3.5% of Smithbridge Asset Management Inc. DE's portfolio, making the stock its 2nd largest position. Smithbridge Asset Management Inc. DE's holdings in NVIDIA were worth $23,497,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Brighton Jones LLC lifted its position in NVIDIA by 12.4% in the fourth quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker's stock valued at $43,631,000 after purchasing an additional 35,815 shares during the last quarter. Bank Pictet & Cie Europe AG boosted its stake in shares of NVIDIA by 1.0% during the fourth quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker's stock valued at $315,100,000 after purchasing an additional 22,929 shares during the period. Highview Capital Management LLC DE grew its holdings in shares of NVIDIA by 6.7% in the fourth quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker's stock worth $7,842,000 after purchasing an additional 3,653 shares during the last quarter. Hudson Value Partners LLC grew its holdings in shares of NVIDIA by 30.7% in the fourth quarter. Hudson Value Partners LLC now owns 50,658 shares of the computer hardware maker's stock worth $6,805,000 after purchasing an additional 11,900 shares during the last quarter. Finally, Wealth Group Ltd. increased its stake in shares of NVIDIA by 15.7% in the first quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker's stock worth $715,000 after buying an additional 896 shares during the period. 65.27% of the stock is owned by institutional investors.

Insider Activity at NVIDIA

In related news, Director Stephen C. Neal sold 15,500 shares of the company's stock in a transaction on 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 sale, the director directly owned 116,135 shares of the company's stock, valued at $25,053,803.55. This represents a 11.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Mark A. Stevens sold 885,000 shares of the stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the transaction, the director owned 5,207,271 shares of the company's stock, valued at approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 1,901,125 shares of company stock worth $410,583,015 over the last ninety days. 3.94% of the stock is owned by corporate insiders.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Analysts and commentators said NVDA’s lower valuation and dominant position in AI spending could make recent weakness a buying opportunity, with Bank of America and others highlighting strong long-term upside.
• Positive Sentiment: Reuters reported that Nvidia supplier King Yuan Electronics plans to invest up to $1.4 billion in a U.S. facility, reinforcing the scale of the AI hardware supply chain and ongoing buildout around NVIDIA. Article Title
• Positive Sentiment: NVIDIA also announced a partnership with Fervo to launch an EGS-Twin geothermal platform, adding another AI-related ecosystem collaboration that investors may view as supportive of future growth. Article Title
• Positive Sentiment: Coverage around Nvidia’s strong Q1 results and the company’s upbeat revenue guidance near $91 billion for the next quarter continues to underline that AI demand is still running hot.
• Neutral Sentiment: Media and trading activity around NVDA remains elevated, including options-flow commentary, “most watched” stock chatter, and repeated articles on its AI leadership, which can keep the shares volatile but do not change fundamentals on their own.
• Negative Sentiment: Some reports noted pressure from customers and competitors building in-house AI chips, and there was also discussion of a possible delay to NVIDIA’s next-gen Kyber rack-scale architecture, both of which could raise investor concerns about future margins and timing.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the stock. DZ Bank reiterated a "buy" rating on shares of NVIDIA in a report on Thursday, May 21st. Robert W. Baird set a $500.00 price target on shares of NVIDIA and gave the stock an "outperform" rating in a report on Thursday, May 21st. Benchmark restated a "buy" rating and issued a $335.00 price objective (up from $250.00) on shares of NVIDIA in a research report on Thursday, May 21st. Craig Hallum increased their target price on shares of NVIDIA from $245.00 to $275.00 and gave the stock a "buy" rating in a report on Thursday, May 21st. Finally, Jefferies Financial Group reiterated a "buy" rating and set a $300.00 target price (up from $275.00) on shares of NVIDIA in a report on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, NVIDIA has a consensus rating of "Buy" and a consensus price target of $303.84.

NVIDIA Price Performance

Shares of NASDAQ NVDA opened at $210.96 on Friday. NVIDIA Corporation has a 1 year low of $162.02 and a 1 year high of $236.54. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The company's 50-day moving average is $209.48 and its 200 day moving average is $194.42. The stock has a market capitalization of $5.11 trillion, a P/E ratio of 32.31, a P/E/G ratio of 0.45 and a beta of 2.21.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping the consensus estimate of $1.76 by $0.11. The business had revenue of $81.61 billion during the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. NVIDIA's quarterly revenue was up 85.2% compared to the same quarter last year. During the same period last year, the business posted $0.81 earnings per share. On average, sell-side analysts expect that NVIDIA Corporation will post 8.79 earnings per share for the current year.

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

NVIDIA Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were given a dividend of $0.25 per share. This is a boost from NVIDIA's previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date was Thursday, June 4th. NVIDIA's dividend payout ratio is presently 15.31%.

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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