NVIDIA Corporation $NVDA Shares Sold by Sumitomo Mitsui DS Asset Management Company Ltd

Key Points

• Sumitomo Mitsui DS Asset Management slightly reduced its NVIDIA stake by 0.5% in the fourth quarter, but NVIDIA remains its biggest holding at about 6% of assets. The fund still owned 4.12 million shares valued at roughly $767.7 million.
• NVIDIA’s fundamentals remain strong, with the company recently reporting quarterly EPS and revenue that beat expectations. Revenue rose 85.2% year over year, and analysts now expect full-year EPS of 8.04.
• The company also boosted shareholder returns by approving an $80 billion share buyback and raising its quarterly dividend to $0.25 per share from $0.01. Despite recent insider sales and a slightly weaker stock price, Wall Street remains broadly bullish with an average rating of Buy.

Sumitomo Mitsui DS Asset Management Company Ltd trimmed its holdings in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 0.5% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 4,116,258 shares of the computer hardware maker's stock after selling 21,490 shares during the period. NVIDIA accounts for about 6.0% of Sumitomo Mitsui DS Asset Management Company Ltd's holdings, making the stock its biggest holding. Sumitomo Mitsui DS Asset Management Company Ltd's holdings in NVIDIA were worth $767,682,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of the business. Harel Insurance Investments & Financial Services Ltd. increased its position in NVIDIA by 13.4% during the fourth quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,769,941 shares of the computer hardware maker's stock worth $330,084,000 after purchasing an additional 209,122 shares during the last quarter. Liberty Atlantic Advisors LLC acquired a new stake in NVIDIA during the fourth quarter worth about $989,000. Christine Messmer PC acquired a new stake in NVIDIA during the fourth quarter worth about $4,872,000. Milestone Asset Management Group LLC increased its position in NVIDIA by 22.5% during the fourth quarter. Milestone Asset Management Group LLC now owns 19,145 shares of the computer hardware maker's stock worth $3,571,000 after purchasing an additional 3,515 shares during the last quarter. Finally, Alta Wealth Advisors LLC increased its position in NVIDIA by 4.0% during the fourth quarter. Alta Wealth Advisors LLC now owns 73,913 shares of the computer hardware maker's stock worth $13,785,000 after purchasing an additional 2,840 shares during the last quarter. 65.27% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Investors are looking ahead to next week’s Computex conference, which could provide a fresh catalyst for NVIDIA’s AI-chip leadership and keep sentiment constructive around the stock. Why Nvidia stock is up around 1% today
• Positive Sentiment: Analysts and commentators continue to point to NVIDIA as the main winner from the AI server boom, with strong demand for its chips, Blackwell products, and broader data-center ecosystem. Jim Cramer names Nvidia as the winner behind Dell rally
• Positive Sentiment: News that NVIDIA is investing heavily in photonics, with billions directed toward next-generation data-center connectivity, suggests the company is trying to extend its AI leadership beyond GPUs into the next bottlenecks in AI infrastructure. Nvidia is investing billions into this emerging technology that could change the AI industry
• Positive Sentiment: Truist raised its price target on NVDA to $307 and kept a Buy rating, reinforcing the view that the company’s strong quarterly results and growth outlook remain intact. NVIDIA Corporation (NVDA) Stock Update: Truist Raises Target to $307 Following Strong Quarter
• Neutral Sentiment: CEO Jensen Huang’s reported advisory-board role at Tsinghua University keeps NVIDIA visible in China-related tech circles, but it is more of a corporate-profile headline than a direct earnings driver. Nvidia chief Jensen Huang to join board of Beijing's Tsinghua University, FT reports
• Negative Sentiment: Director John Dabiri sold 625 shares under a pre-arranged 10b5-1 trading plan, which is routine but can still add to investor caution when the stock is already expensive and volatile. SEC filing for John Dabiri transaction
• Negative Sentiment: Several articles highlight concerns that NVIDIA’s valuation is stretched and that the stock may be struggling to extend gains after a huge AI-driven run, which can weigh on near-term trading. Nvidia And The Reality Of Paying For Perfection

NVIDIA Trading Down 1.5%

Shares of NVDA stock opened at $211.14 on Friday. 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 firm has a market cap of $5.11 trillion, a PE ratio of 32.33, a price-to-earnings-growth ratio of 0.52 and a beta of 2.25. The company has a 50-day moving average of $199.28 and a two-hundred day moving average of $189.70. NVIDIA Corporation has a 1-year low of $132.92 and a 1-year high of $236.54.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, topping the consensus estimate of $1.76 by $0.11. The company had revenue of $81.62 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 revenue was up 85.2% compared to the same quarter last year. During the same quarter last year, the firm posted $0.81 earnings per share. On average, analysts predict that NVIDIA Corporation will post 8.04 EPS for the current year.

NVIDIA declared that its board has approved a stock buyback plan on Wednesday, May 20th that allows the company to repurchase $80.00 billion in shares. This repurchase authorization allows the computer hardware maker to buy up to 1.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its stock is undervalued.

NVIDIA Increases Dividend

The business also recently announced 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 represents a $1.00 annualized dividend and a yield of 0.5%. This is a boost from NVIDIA's previous quarterly dividend of $0.01. The ex-dividend date of this dividend is Thursday, June 4th. NVIDIA's payout ratio is 0.61%.

Insider Activity at NVIDIA

In other news, Director Aarti S. Shah sold 19,000 shares of the firm's stock in a transaction that occurred on Thursday, March 19th. The shares were sold at an average price of $176.71, for a total value of $3,357,490.00. Following the completion of the transaction, the director owned 36,007 shares of the company's stock, valued at approximately $6,362,796.97. This trade represents a 34.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Mark A. Stevens sold 221,682 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $173.68, for a total transaction of $38,501,729.76. Following the completion of the transaction, the director directly owned 7,399,771 shares of the company's stock, valued at approximately $1,285,192,227.28. The trade was a 2.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 906,961 shares of company stock valued at $162,936,268 over the last quarter. 3.94% of the stock is owned by insiders.

Analyst Ratings Changes

Several research firms recently issued reports on NVDA. Royal Bank Of Canada set a $280.00 price objective on shares of NVIDIA in a research report on Thursday, May 21st. Piper Sandler restated an "overweight" rating on shares of NVIDIA in a research report on Thursday, February 26th. DA Davidson raised their price objective on shares of NVIDIA from $250.00 to $300.00 and gave the stock a "buy" rating in a research report on Monday, May 18th. DZ Bank restated a "buy" rating on shares of NVIDIA in a research report on Thursday, May 21st. Finally, Itau BBA Securities restated a "market perform" rating on shares of NVIDIA in a research report on Thursday, February 26th. Three analysts have rated the stock with a Strong Buy rating, forty-seven have given a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, NVIDIA presently has an average rating of "Buy" and an average price target of $305.38.

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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