NVIDIA Corporation $NVDA Shares Purchased by Palestra Capital Management LLC

Key Points

• Palestra Capital Management increased its NVIDIA stake by 113.7% in the second quarter, reaching 390,320 shares valued at approximately $78.1 million. Several other institutional investors also expanded their positions, with institutions collectively owning 65.27% of NVIDIA’s stock.
• NVIDIA reported quarterly EPS of $2.22 and revenue of $96.22 billion, exceeding analyst estimates, while revenue grew 105.9% year over year. The company also authorized a $150 billion share-repurchase program and declared a quarterly dividend of $0.25 per share.
• Analyst sentiment remains strongly positive, with an overall “Buy” rating and an average price target of $321.89, although NVIDIA shares were down 1.3% and executives have continued selling shares under pre-arranged trading plans.

Palestra Capital Management LLC boosted its holdings in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 113.7% during the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 390,320 shares of the computer hardware maker's stock after acquiring an additional 207,632 shares during the quarter. NVIDIA accounts for approximately 2.6% of Palestra Capital Management LLC's investment portfolio, making the stock its 16th biggest holding. Palestra Capital Management LLC's holdings in NVIDIA were worth $78,099,000 as of its most recent SEC filing.

Other hedge funds have also added to or reduced their stakes in the company. Palogic Value Management L.P. raised its stake in shares of NVIDIA by 451.1% during the 2nd quarter. Palogic Value Management L.P. now owns 7,330 shares of the computer hardware maker's stock worth $1,466,000 after purchasing an additional 6,000 shares during the period. Panoramic Capital LLC boosted its holdings in shares of NVIDIA by 161.2% in the 2nd quarter. Panoramic Capital LLC now owns 65,268 shares of the computer hardware maker's stock worth $13,059,000 after buying an additional 40,282 shares during the last quarter. Perennial Investment Advisors LLC boosted its holdings in shares of NVIDIA by 1.6% in the 2nd quarter. Perennial Investment Advisors LLC now owns 323,551 shares of the computer hardware maker's stock worth $64,740,000 after buying an additional 5,016 shares during the last quarter. Permanens Capital L.P. grew its position in NVIDIA by 316.5% during the second quarter. Permanens Capital L.P. now owns 8,647 shares of the computer hardware maker's stock valued at $1,730,000 after buying an additional 6,571 shares during the period. Finally, Petrus Trust Company LTA grew its position in NVIDIA by 205.8% during the second quarter. Petrus Trust Company LTA now owns 195,702 shares of the computer hardware maker's stock valued at $39,158,000 after buying an additional 131,702 shares during the period. Institutional investors and hedge funds own 65.27% of the company's stock.

NVIDIA Stock Down 1.3%

NVDA opened at $226.32 on Tuesday. The firm has a market capitalization of $5.45 trillion, a P/E ratio of 28.61, a price-to-earnings-growth ratio of 1.77 and a beta of 2.22. NVIDIA Corporation has a one year low of $164.27 and a one year high of $243.37. The company has a fifty day moving average price of $223.05 and a 200-day moving average price of $210.02. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85.

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, topping analysts' consensus estimates of $2.09 by $0.13. The company had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The firm's revenue was up 105.9% compared to the same quarter last year. During the same quarter last year, the business posted $1.05 earnings per share. Equities research analysts expect that NVIDIA Corporation will post 9.25 earnings per share for the current fiscal year.

NVIDIA declared that its board has approved a share buyback program 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 buy up to 2.8% of its stock through open market purchases. Share repurchase programs are usually a sign that the company's board believes its stock is undervalued.

NVIDIA Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date was Thursday, September 10th. NVIDIA's dividend payout ratio is currently 12.64%.

Insiders Place Their Bets

In other NVIDIA news, CFO Colette Kress sold 34,918 shares of the firm's stock in a transaction dated 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 owned 765,103 shares of the company's stock, valued at $167,595,812.15. This trade represents a 4.36% decrease in their position. The transaction was disclosed in a legal 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 Teter sold 30,460 shares of NVIDIA stock in a transaction dated 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 sale, the executive vice president owned 2,687,660 shares of the company's stock, valued at approximately $598,810,648. This trade represents a 1.12% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,766,118 shares of company stock worth $399,450,353 in the last ninety days. 3.94% of the stock is currently owned by insiders.

Analyst Ratings Changes

NVDA has been the subject of a number of research analyst reports. Wall Street Zen upgraded shares of NVIDIA from a "buy" rating to a "strong-buy" rating in a report on Saturday. Raymond James Financial set a $515.00 price target on shares of NVIDIA and gave the stock a "strong-buy" rating in a report on Thursday, August 27th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of NVIDIA in a research note on Monday, August 31st. Sanford C. Bernstein reissued a "buy" rating on shares of NVIDIA in a report on Monday, September 21st. Finally, Rosenblatt Securities reissued a "buy" rating and set a $390.00 price objective on shares of NVIDIA in a report on Tuesday, September 29th. Five equities research analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Buy" and an average price target of $321.89.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA and Cisco announced USFP, a next-generation optical module designed to support 400Gb/s-per-lane signals and up to 12.8Tb/s of capacity. The technology could help AI data centers scale bandwidth while reducing power use and network complexity. NVIDIA and Cisco announce USFP
• Positive Sentiment: Navitas Semiconductor is collaborating with NVIDIA on a 24-kilowatt power-delivery board for next-generation AI infrastructure. The single-stage design is intended to improve efficiency and reduce board space, reinforcing demand for NVIDIA-based AI factories. Navitas collaborates with NVIDIA
• Positive Sentiment: Bitdeer secured an eight-year agreement for a 60MW Malaysia facility designed for NVIDIA’s Vera Rubin systems, bringing its contracted AI data-center capacity to approximately 333.5MW. This provides another indication of long-term infrastructure demand. Bitdeer expands Malaysia AI campus
• Neutral Sentiment: NVIDIA is reportedly considering a larger investment in or acquisition of open-weight AI startup Reflection AI. The move could broaden NVIDIA’s software and model ecosystem, but discussions are preliminary and could fail to produce a deal. NVIDIA and Reflection AI talks
• Neutral Sentiment: Analysts and commentators remain divided: some argue triple-digit growth makes NVDA reasonably valued and see further upside, while others point to technical signs of a potential peak, a roughly $5.5 trillion valuation, and concentration risk in AI-related equities.
• Negative Sentiment: Microsoft said it plans to rely increasingly on its internally developed Maia chips for AI inference, potentially reducing its dependence on NVIDIA GPUs and intensifying competition from hyperscaler-designed silicon. Microsoft to rely more on Maia chips
• Negative Sentiment: Reports that OpenAI’s annualized revenue may be about $50 billion—below previously cited estimates—have raised questions about AI spending, infrastructure demand and the valuation of AI suppliers. Separately, Firmus’ canceled data-center IPO suggested financing conditions for AI infrastructure could be tightening.
• Negative Sentiment: Technical analysts warned that NVDA’s retreat from its record high could signal weakening momentum. Investor caution is also reflected in a reported $21 million options position betting the stock falls below $180 by January and continued insider selling, although these signals do not necessarily predict operating performance. Nvidia falls back from record high

NVIDIA Company Profile

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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