NVIDIA Corporation $NVDA Stake Boosted by Principal Financial Group Inc.

Key Points

• Principal Financial Group increased its NVIDIA stake by 3.4% in the fourth quarter, making NVIDIA its largest holding at about 3.7% of the portfolio. The position was valued at roughly $7.19 billion at the end of the reporting period.
• NVIDIA reported better-than-expected quarterly results, with EPS of $1.87 on revenue of $81.62 billion, and revenue jumped 85.2% year over year. The company also raised its quarterly dividend to $0.25 from $0.01 and approved an $80 billion stock buyback program.
• Analysts remain broadly bullish on NVIDIA, with multiple firms raising price targets and the stock carrying a consensus Buy rating and average target price of $305.38. Still, some commentary warns the valuation is stretched and points to geopolitical scrutiny around China-related chip risks.

Principal Financial Group Inc. boosted its position in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 3.4% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 38,551,197 shares of the computer hardware maker's stock after buying an additional 1,251,321 shares during the quarter. NVIDIA makes up about 3.7% of Principal Financial Group Inc.'s holdings, making the stock its largest position. Principal Financial Group Inc. owned about 0.16% of NVIDIA worth $7,189,801,000 at the end of the most recent reporting period.

A number of other large investors have also bought and sold shares of NVDA. Longfellow Investment Management Co. LLC lifted its holdings in NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock valued at $33,000 after purchasing an additional 67 shares during the last quarter. Spurstone Advisory Services LLC purchased a new stake in NVIDIA during the second quarter valued at about $40,000. Syntax Research Inc. lifted its holdings in NVIDIA by 62.5% during the fourth quarter. Syntax Research Inc. now owns 260 shares of the computer hardware maker's stock valued at $49,000 after purchasing an additional 100 shares during the last quarter. Sellwood Investment Partners LLC purchased a new stake in NVIDIA during the third quarter valued at about $50,000. Finally, Networth Advisors LLC purchased a new stake in NVIDIA during the fourth quarter valued at about $51,000. 65.27% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. Jefferies Financial Group reaffirmed a "buy" rating and set a $300.00 price objective (up from $275.00) on shares of NVIDIA in a report on Thursday, May 21st. Weiss Ratings reiterated a "buy (b)" rating on shares of NVIDIA in a research report on Friday, April 10th. Seaport Research Partners upped their price target on NVIDIA from $140.00 to $180.00 and gave the company a "sell" rating in a research report on Thursday, May 21st. BNP Paribas Exane upped their price target on NVIDIA from $270.00 to $285.00 and gave the company an "outperform" rating in a research report on Thursday, May 21st. Finally, Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $255.00 price target (up from $220.00) on shares of NVIDIA in a research report on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, forty-seven have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of $305.38.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Wall Street analysts remain constructive after earnings, with Truist raising its price target to $307 and Tigress Financial lifting its target to $425, citing NVIDIA’s dominant position in AI hardware and strong growth outlook.
• Positive Sentiment: Management’s Taiwan expansion plan is reinforcing the long-term AI demand story. NVIDIA said it plans to spend about $150 billion a year in Taiwan and build a new headquarters there, underscoring confidence in the supply chain and future production capacity.
• Positive Sentiment: Recent commentary continues to frame NVIDIA as a key beneficiary of the AI infrastructure buildout, with articles pointing to ongoing shortages in memory, networking, and power as evidence that demand for NVIDIA’s Blackwell systems remains very strong.
• Neutral Sentiment: Several articles highlight Jensen Huang’s growing influence and visibility, including reports that he may join the advisory board of Tsinghua University and that he is now among the world’s richest people. These are notable but not direct stock catalysts.
• Neutral Sentiment: A number of pieces focus on broader AI ecosystem developments, including Groq’s fundraising, IREN’s Blackwell purchase, and other semiconductor names benefiting from the AI trade. These reinforce sector momentum but are mostly indirect for NVDA.
• Negative Sentiment: Some investors are worried NVIDIA’s valuation has become stretched and that the AI trade may be crowded, with bearish commentary warning that a lot of good news may already be priced in.
• Negative Sentiment: There are also geopolitical and regulatory concerns, including reports of possible NVIDIA chip smuggling to China via Japan, which could revive scrutiny around export controls and China exposure.

NVIDIA Stock Up 0.8%

NVDA stock opened at $214.25 on Friday. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. The company's 50 day moving average is $198.67 and its 200 day moving average is $189.55. The stock has a market cap of $5.18 trillion, a price-to-earnings ratio of 32.81, a price-to-earnings-growth ratio of 0.51 and a beta of 2.25. 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 issued its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 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 analysts' expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business's quarterly revenue was up 85.2% on a year-over-year basis. During the same period last year, the business earned $0.81 earnings per share. Sell-side analysts predict that NVIDIA Corporation will post 8.04 EPS for the current fiscal year.

NVIDIA Increases Dividend

The firm also recently disclosed 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 dividend payout ratio is currently 0.61%.

NVIDIA declared that its board has approved a stock buyback program 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 buy up to 1.5% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling

In other news, Director Mark A. Stevens sold 221,682 shares of the company's stock in a transaction on Friday, March 20th. The shares were sold at an average price of $173.68, for a total value of $38,501,729.76. Following the completion of the sale, the director owned 7,399,771 shares of the company's stock, valued at approximately $1,285,192,227.28. This represents a 2.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Aarti S. Shah sold 19,000 shares of the company's stock in a transaction on Thursday, March 19th. The shares were sold at an average price of $176.71, for a total transaction of $3,357,490.00. Following the completion of the sale, the director directly owned 36,007 shares of the company's stock, valued at $6,362,796.97. This trade represents a 34.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 906,336 shares of company stock worth $162,802,518 in the last ninety days. 3.94% of the stock is currently owned by insiders.

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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