NVIDIA Corporation $NVDA Shares Sold by PCM Encore LLC

Key Points

• PCM Encore LLC reduced its NVIDIA stake by 3.3% in the second quarter, selling 4,491 shares and retaining 129,660 shares valued at approximately $25.9 million. Institutional investors collectively own 65.27% of NVIDIA.
• Analyst sentiment remains strongly positive, with a consensus “Buy” rating and an average price target of $320.71. NVIDIA also reported quarterly earnings and revenue above expectations, with revenue up 105.9% year over year.
• NVIDIA approved a $150 billion share-repurchase program, while its shares traded near their 52-week high. Key risks include elevated valuation, insider selling, export controls, AI infrastructure financing concerns and potential competition from internally developed chips.

PCM Encore LLC trimmed its stake in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 3.3% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 129,660 shares of the computer hardware maker's stock after selling 4,491 shares during the quarter. NVIDIA comprises 4.6% of PCM Encore LLC's investment portfolio, making the stock its 2nd biggest holding. PCM Encore LLC's holdings in NVIDIA were worth $25,944,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. Bank of America Corp DE boosted its holdings in NVIDIA by 2.1% in the 1st quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker's stock valued at $33,345,453,000 after purchasing an additional 4,019,505 shares in the last quarter. Invesco Ltd. lifted its stake in shares of NVIDIA by 0.3% in the fourth quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker's stock valued at $26,714,167,000 after purchasing an additional 446,178 shares during the period. J. Stern & Co. LLP boosted its stake in shares of NVIDIA by 13,709.1% during the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker's stock worth $23,454,297,000 after acquiring an additional 124,849,603 shares in the last quarter. Amundi raised its holdings in NVIDIA by 10.4% during the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock worth $23,329,141,000 after purchasing an additional 12,575,177 shares during the last quarter. Finally, Deutsche Bank AG boosted its position in shares of NVIDIA by 2.3% in the 2nd quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker's stock worth $18,399,108,000 after buying an additional 2,045,101 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on NVDA. Jefferies Financial Group reaffirmed a "buy" rating on shares of NVIDIA in a research note on Wednesday, August 26th. Royal Bank Of Canada raised their price target on NVIDIA from $300.00 to $330.00 and gave the stock an "outperform" rating in a research note on Thursday, August 27th. Weiss Ratings restated a "buy (b)" rating on shares of NVIDIA in a report on Wednesday, July 8th. Piper Sandler assumed coverage on shares of NVIDIA in a research note on Wednesday, September 9th. They set an "overweight" rating and a $300.00 price objective for the company. Finally, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of NVIDIA in a report on Monday, August 31st. Four research analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus target price of $320.71.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Morgan Stanley named NVIDIA its top semiconductor pick, maintaining an Overweight rating and setting a $300 price target. The firm believes NVIDIA’s software ecosystem, scale and positioning across AI infrastructure trends give it a durable competitive moat. Morgan Stanley names NVIDIA a top pick
• Positive Sentiment: NVIDIA’s recently announced $150 billion buyback authorization lifts total remaining repurchase capacity to approximately $235 billion. Investors view the plan as a sign of management confidence and a potential source of per-share earnings support. NVIDIA buyback analysis
• Positive Sentiment: Analysts continue to raise expectations for hyperscaler spending, with Barclays estimating NVIDIA could generate $401 billion in hyperscaler revenue in 2027. CoreWeave’s launch of the Vera Rubin platform and additional enterprise customers also supports demand for NVIDIA’s next-generation systems. Barclays hyperscaler revenue estimate
• Neutral Sentiment: The broader semiconductor and technology complex is attracting buying interest as AI investment remains a major market leadership theme. However, NVIDIA’s valuation and substantial market concentration leave the stock sensitive to interest rates, economic data and shifts in institutional positioning.
• Negative Sentiment: Investors are monitoring reports that Amazon may move roughly $8 billion of NVIDIA chips off its balance sheet through leasing or financing structures. While this could improve customer flexibility, it adds scrutiny around AI infrastructure financing and so-called circular transactions. Amazon NVIDIA chip balance-sheet report
• Negative Sentiment: Export-control concerns remain a headline risk after prosecutors alleged a California man helped smuggle approximately $300 million of NVIDIA chips to China. Separately, Michael Burry warned that GPU depreciation could undermine the economics of the AI infrastructure boom, while Alphabet’s growing use of internally designed chips represents a longer-term competitive threat. NVIDIA chip smuggling prosecution

NVIDIA Stock Performance

Shares of NVDA stock opened at $233.95 on Monday. The company's fifty day simple moving average is $218.74 and its 200-day simple moving average is $207.65. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. NVIDIA Corporation has a 52 week low of $164.27 and a 52 week high of $237.88. The company has a market cap of $5.64 trillion, a PE ratio of 29.58, a P/E/G ratio of 1.81 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping the consensus estimate of $2.09 by $0.13. The company had revenue of $96.22 billion during 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 company's revenue was up 105.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.05 earnings per share. As a group, equities research analysts anticipate that NVIDIA Corporation will post 9.25 EPS for the current year.

NVIDIA Announces Dividend

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

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

Insider Buying and Selling

In other NVIDIA news, Director Mark A. Stevens sold 622,239 shares of NVIDIA stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the sale, the director directly owned 2,336,531 shares in the company, valued at $541,187,310.22. The trade was a 21.03% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Colette Kress sold 34,918 shares of the stock in a transaction that occurred on 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 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 1,766,118 shares of company stock worth $399,450,353. 3.94% of the stock is currently owned by corporate insiders.

NVIDIA 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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