NVIDIA Corporation $NVDA Shares Bought by Asset Allocation & Management Company LLC

Key Points

• Asset Allocation & Management Company LLC increased its NVIDIA stake by 40.9% in the first quarter, buying 2,630 more shares and bringing its total to 9,068 shares valued at about $1.58 million.
• NVIDIA’s recent fundamentals remain strong: it reported EPS of $1.87 and revenue of $81.61 billion, both above estimates, with revenue up 85.2% year over year.
• The company also approved an $80 billion stock buyback and raised its quarterly dividend to $0.25 per share, even as the stock has faced pressure from broader AI-spending concerns and some legal/headline risk.

Asset Allocation & Management Company LLC raised its holdings in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 40.9% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 9,068 shares of the computer hardware maker's stock after purchasing an additional 2,630 shares during the period. NVIDIA accounts for approximately 0.6% of Asset Allocation & Management Company LLC's portfolio, making the stock its 22nd largest holding. Asset Allocation & Management Company LLC's holdings in NVIDIA were worth $1,581,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of NVDA. Lifetime Wealth Management P.C. purchased a new position in NVIDIA during the fourth quarter worth $26,000. Longfellow Investment Management Co. LLC lifted its position in shares of NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock valued at $33,000 after acquiring an additional 67 shares in the last quarter. Inspire Investing LLC acquired a new stake in shares of NVIDIA during the fourth quarter valued at $44,000. AlphaCentric Advisors LLC acquired a new stake in shares of NVIDIA during the fourth quarter valued at $45,000. Finally, Spurstone Advisory Services LLC purchased a new stake in NVIDIA during the 2nd quarter worth about $40,000. 65.27% of the stock is owned by hedge funds and other institutional investors.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA continues to secure new AI-related partnerships and product momentum, including the launch of its BioNeMo Agent Toolkit for life sciences and additional collaborations around digital twins, robotics, and energy infrastructure. Nvidia launches BioNeMo agent toolkit for AI-driven life sciences research
• Positive Sentiment: Analysts and several articles continue to frame NVIDIA as a long-term winner from AI infrastructure buildout, with some bullish commentary pointing to strong earnings growth, major data-center demand, and attractive valuation relative to its growth. Nvidia: The $1 Trillion Trade Hiding In Plain Sight
• Neutral Sentiment: The company’s latest earnings remain a positive backdrop: NVIDIA beat expectations on both EPS and revenue, with revenue up sharply year over year, reinforcing that fundamentals are still strong despite the stock’s weakness.
• Negative Sentiment: AI spending concerns are weighing on the whole chip complex, with reports that SK Hynix is slowing HBM expansion and traders worrying about the sustainability of debt-funded AI capex. That has hit NVIDIA alongside peers like AMD, Intel, Micron, and SanDisk. Lam Research, Qualcomm, and Western Digital Stocks Trade Down, What You Need To Know
• Negative Sentiment: There is also some company-specific headline risk from a Reuters report that NVIDIA was sued by music company Jamendo over AI training, adding to near-term uncertainty. Nvidia sued by music company Jamendo over AI training

NVIDIA Stock Down 4.1%

Shares of NVDA opened at $200.00 on Wednesday. The firm has a market cap of $4.84 trillion, a PE ratio of 30.63, a price-to-earnings-growth ratio of 0.47 and a beta of 2.22. The company's fifty day moving average is $210.62 and its two-hundred day moving average is $192.80. NVIDIA Corporation has a fifty-two week low of $145.50 and a fifty-two 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.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping analysts' consensus estimates of $1.76 by $0.11. The business had revenue of $81.61 billion during the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The business's revenue for the quarter was up 85.2% on a year-over-year basis. During the same period in the prior year, the firm posted $0.81 EPS. Analysts forecast that NVIDIA Corporation will post 8.65 earnings per share for the current year.

NVIDIA declared that its board has authorized a stock buyback plan on Wednesday, May 20th that allows the company to buyback $80.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to reacquire up to 1.5% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

NVIDIA Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be paid 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 yield of 0.5%. The ex-dividend date is Thursday, June 4th. NVIDIA's payout ratio is currently 15.31%.

Insider Transactions at NVIDIA

In other news, Director John Dabiri sold 625 shares of NVIDIA stock in a transaction dated Wednesday, May 27th. The stock was 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 of the company's stock, valued at $3,030,882. The trade was a 4.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of the business'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 sale, the director owned 116,135 shares of the company's stock, valued at $25,053,803.55. The trade was a 11.77% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,901,125 shares of company stock worth $410,583,015 in the last three months. 3.94% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the stock. Wedbush upped their target price on shares of NVIDIA from $300.00 to $330.00 and gave the company an "outperform" rating in a report on Thursday, May 21st. Cantor Fitzgerald reiterated an "overweight" rating and set a $350.00 price target on shares of NVIDIA in a report on Thursday, May 21st. Weiss Ratings reissued a "buy (b)" rating on shares of NVIDIA in a research report on Friday, April 10th. Stifel Nicolaus set a $282.00 price objective on shares of NVIDIA and gave the company a "buy" rating in a research note on Thursday, May 21st. Finally, Tigress Financial reaffirmed a "strong-buy" rating and issued a $425.00 target price (up from $360.00) on shares of NVIDIA in a research note on Wednesday, May 27th. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Buy" and a consensus target price of $305.67.

About NVIDIA

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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