NVIDIA Corporation $NVDA Stake Boosted by Dilation Capital Management LP

Key Points

• Dilation Capital Management LP increased its NVIDIA stake by 24.6% in the fourth quarter, adding 24,065 shares to bring its total to 121,861 shares valued at about $22.7 million.
• NVIDIA reported strong quarterly results, with EPS of $1.87 and revenue of $81.62 billion, both ahead of analyst expectations; revenue rose 85.2% year over year.
• The company also boosted shareholder returns by announcing a higher quarterly dividend of $0.25 per share and an $80 billion share repurchase authorization, signaling confidence in the stock.

Dilation Capital Management LP lifted its holdings in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 24.6% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 121,861 shares of the computer hardware maker's stock after buying an additional 24,065 shares during the period. NVIDIA makes up 10.5% of Dilation Capital Management LP's holdings, making the stock its 2nd biggest position. Dilation Capital Management LP's holdings in NVIDIA were worth $22,727,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently modified their holdings of NVDA. Longfellow Investment Management Co. LLC lifted its stake 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 worth $33,000 after buying an additional 67 shares in the last quarter. Spurstone Advisory Services LLC purchased a new position in shares of NVIDIA in the second quarter worth about $40,000. Syntax Research Inc. lifted its stake in shares of NVIDIA by 62.5% in the fourth quarter. Syntax Research Inc. now owns 260 shares of the computer hardware maker's stock worth $49,000 after buying an additional 100 shares in the last quarter. Sellwood Investment Partners LLC purchased a new position in shares of NVIDIA in the third quarter worth about $50,000. Finally, Networth Advisors LLC purchased a new position in shares of NVIDIA in the fourth quarter worth about $51,000. 65.27% of the stock is owned by hedge funds and other institutional investors.

NVIDIA Price Performance

NVIDIA stock opened at $205.10 on Monday. The company's 50 day simple moving average is $203.37 and its 200-day simple moving average is $190.58. The company has a market capitalization of $4.96 trillion, a price-to-earnings ratio of 31.41, a price-to-earnings-growth ratio of 0.46 and a beta of 2.22. NVIDIA Corporation has a 1 year low of $140.85 and a 1 year high of $236.54. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.76 by $0.11. The business had revenue of $81.62 billion for the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business's revenue was up 85.2% on a year-over-year basis. During the same period in the previous year, the firm earned $0.81 EPS. As a group, equities research analysts expect that NVIDIA Corporation will post 8.61 earnings per share for the current year.

NVIDIA Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Thursday, June 4th will be paid a $0.25 dividend. This is a positive change from NVIDIA's previous quarterly dividend of $0.01. The ex-dividend date of this dividend is Thursday, June 4th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. NVIDIA's payout ratio is presently 15.31%.

NVIDIA announced that its board has initiated a share repurchase plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board believes its shares are undervalued.

Analyst Ratings Changes

A number of equities analysts have commented on NVDA shares. Stifel Nicolaus set a $282.00 target price on shares of NVIDIA and gave the stock a "buy" rating in a research note on Thursday, May 21st. Itau BBA Securities reaffirmed a "market perform" rating on shares of NVIDIA in a research note on Thursday, February 26th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $255.00 target price (up from $220.00) on shares of NVIDIA in a research note on Thursday, May 21st. New Street Research reduced their target price on shares of NVIDIA from $343.00 to $340.00 in a research note on Thursday, May 21st. Finally, Craig Hallum lifted their target price on shares of NVIDIA from $245.00 to $275.00 and gave the stock a "buy" rating in a research note on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Buy" and a consensus price target of $305.67.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA continues to win bullish analyst coverage, with firms like China Renaissance and KeyBanc reiterating optimistic views and high price targets, reinforcing expectations for further upside. China Renaissance rating update
• Positive Sentiment: NVIDIA’s ecosystem is expanding, including a major AI partnership with Taiwan Semiconductor and new collaborations across software, memory, and connectivity, which supports future demand for its AI platforms. Taiwan Semiconductor Manufacturing Signs Major AI Deal With Nvidia
• Positive Sentiment: Jensen Huang’s trip to South Korea has highlighted new growth avenues, including robotics and deeper supplier relationships, adding to NVIDIA’s long-term growth narrative. Nvidia CEO sees robotics as next major sector in South Korea
• Positive Sentiment: Recent commentary says NVIDIA’s Blackwell ramp, CUDA software moat, and AI inference exposure keep the growth story strong, helping investors view pullbacks as buyable. Analyst Picks NVIDIA Over Every Other AI Chip Stock Right Now
• Positive Sentiment: The company’s new PC chip push and RTX Spark product could open another growth lane beyond data centers, even if the market is still digesting the near-term implications. Nvidia's PC Chip Reveal Obscures a Bigger Catalyst for the Stock
• Neutral Sentiment: NVIDIA recently reported strong quarterly results, beat revenue and EPS estimates, and authorized an $80 billion buyback plus a much larger dividend, but those positives are already well known and may be partly priced in. NVIDIA insider trades report
• Negative Sentiment: Broad semiconductor weakness and softer risk appetite after strong jobs data have pressured AI chip stocks, with investors questioning whether the sector’s valuation has gotten ahead of fundamentals. Nvidia stock crashes another 3% today: why Computex failed to spark a rally
• Negative Sentiment: Senator Elizabeth Warren’s invitation for Jensen Huang to testify on China chip sales adds regulatory and export-control overhang around NVIDIA’s business in China. Warren invites Nvidia CEO Jensen Huang to Senate hearing on China AI chip sales
• Negative Sentiment: Director Mark Stevens’ large share sale is also weighing on sentiment, since insider selling can make investors cautious even when the underlying business remains strong. NVIDIA insider trading filing

Insiders Place Their Bets

In other news, Director John Dabiri sold 625 shares of the business's stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the sale, the director directly owned 14,163 shares of the company's stock, valued at approximately $3,030,882. The trade was a 4.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 500,000 shares of the business's stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $219.83, for a total transaction of $109,915,000.00. Following the completion of the sale, the director directly owned 6,399,771 shares in the company, valued at $1,406,861,658.93. This trade represents a 7.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 1,922,461 shares of company stock worth $387,385,083. Insiders own 3.94% of the company's stock.

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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