NVIDIA Corporation $NVDA Stake Cut by Sumitomo Life Insurance Co.

Key Points

• Sumitomo Life Insurance reduced its NVIDIA stake by 1.9%, selling 11,965 shares and retaining 622,746 shares valued at approximately $124.6 million. NVIDIA remains the insurer’s fifth-largest holding and represents about 2% of its portfolio.
• NVIDIA continues to show strong operating momentum, with quarterly revenue rising 105.9% year over year to $96.22 billion and earnings exceeding estimates. Analysts remain broadly bullish, with an average rating of “Buy” and an average price target of $321.89.
• Valuation and ownership risks are notable: insiders sold roughly $399.5 million of stock over the past 90 days, while NVIDIA’s $5.77 trillion market capitalization increases sensitivity to slower AI spending, competition and legal scrutiny.

Sumitomo Life Insurance Co. cut its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 1.9% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 622,746 shares of the computer hardware maker's stock after selling 11,965 shares during the period. NVIDIA accounts for approximately 2.0% of Sumitomo Life Insurance Co.'s investment portfolio, making the stock its 5th biggest holding. Sumitomo Life Insurance Co.'s holdings in NVIDIA were worth $124,605,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently made changes to their positions in NVDA. J. Stern & Co. LLP increased its position in 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 valued at $23,454,297,000 after buying an additional 124,849,603 shares in the last quarter. Amundi boosted its holdings in NVIDIA by 10.4% in the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock worth $23,329,141,000 after acquiring an additional 12,575,177 shares in the last quarter. SEB Asset Management AB purchased a new stake in shares of NVIDIA during the first quarter worth about $1,692,807,000. Employees Provident Fund Board purchased a new stake in shares of NVIDIA during the fourth quarter worth about $1,243,336,000. Finally, H&H International Investment LLC increased its holdings in shares of NVIDIA by 91.3% during the first quarter. H&H International Investment LLC now owns 13,843,775 shares of the computer hardware maker's stock valued at $2,414,354,000 after acquiring an additional 6,606,675 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company's stock.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: AI demand indicators remain strong. Foxconn reported record quarterly revenue, helped by accelerating demand for NVIDIA-linked AI servers. Separately, AM Intelligence announced firm orders for 20,000 NVIDIA Rubin GPUs for deployments in India and Malaysia, providing additional evidence of international infrastructure expansion. Foxconn revenue report
• Positive Sentiment: Analysts see further upside. Recent commentary argues that rising earnings estimates, NVIDIA’s platform advantages and broadening demand from frontier AI labs, agentic AI and physical AI could extend the rally. One analyst suggested Wall Street may be underestimating growth over the next six to eight quarters. Zacks AI stock analysis
• Positive Sentiment: Strategic ecosystem investments are adding optionality. NVIDIA-backed startups Reflection AI and Lambda are advancing new AI models and cloud infrastructure, with Lambda reportedly seeking up to $4 billion ahead of a planned IPO. These developments could support future demand for NVIDIA computing products and strengthen its influence across the AI stack. Lambda funding report
• Neutral Sentiment: The $6 trillion valuation is now a near-term market milestone. NVIDIA’s market capitalization is approaching that level, and options traders reportedly see a meaningful chance of reaching it this month. The milestone may attract additional momentum buying, but it also raises expectations for execution and earnings. NVIDIA options report
• Negative Sentiment: Valuation and concentration risks are increasing. Some market strategists warn that mega-cap technology stocks may be overbought after their recent advances, while NVIDIA’s enormous market value leaves less room for disappointment if AI infrastructure spending slows.
• Negative Sentiment: Competition and legal scrutiny remain risks. Broadcom is expanding its custom AI accelerator business through an Anthropic-related financing arrangement, potentially challenging NVIDIA’s dominance. In addition, a lawsuit alleges NVIDIA’s $20 billion Groq transaction disadvantaged Groq shareholders, creating legal and reputational uncertainty. Groq lawsuit report

Insider Buying and Selling

In related news, Director Mark Stevens sold 622,239 shares of the business's stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $231.62, for a total value of $144,122,997.18. Following the sale, the director directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Colette Kress sold 34,918 shares of the company's stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the completion of the transaction, the chief financial officer directly owned 765,103 shares in the company, valued at $167,595,812.15. The trade was a 4.36% 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. In the last ninety days, insiders sold 1,766,118 shares of company stock valued at $399,450,353. 3.94% of the stock is currently owned by insiders.

NVIDIA Price Performance

Shares of NVDA opened at $239.24 on Wednesday. The business's 50-day moving average is $220.43 and its two-hundred day moving average is $208.47. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The company has a market capitalization of $5.77 trillion, a P/E ratio of 30.25, a P/E/G ratio of 1.85 and a beta of 2.22. NVIDIA Corporation has a fifty-two week low of $164.27 and a fifty-two week high of $243.37.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.13. The business had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company's revenue for the quarter was up 105.9% on a year-over-year basis. During the same period in the prior year, the company posted $1.05 EPS. Research analysts predict that NVIDIA Corporation will post 9.25 earnings per share for the current year.

NVIDIA announced that its board has initiated a stock buyback plan on Monday, September 28th that permits the company to repurchase $150.00 billion in outstanding shares. This repurchase authorization permits the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's management believes its shares are undervalued.

NVIDIA Announces Dividend

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

Analyst Upgrades and Downgrades

Several brokerages recently commented on NVDA. Wedbush increased their price objective on shares of NVIDIA from $330.00 to $345.00 and gave the company an "outperform" rating in a research report on Thursday, August 27th. Wells Fargo & Company set a $210.00 target price on shares of NVIDIA in a research report on Friday. Sanford C. Bernstein restated a "buy" rating on shares of NVIDIA in a research note on Monday, September 21st. Phillip Securities raised their price target on shares of NVIDIA from $285.00 to $300.00 and gave the stock a "buy" rating in a report on Monday, August 31st. Finally, Rosenblatt Securities reiterated a "buy" rating and set a $390.00 price objective on shares of NVIDIA in a research note on Tuesday, September 29th. Four equities research analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Buy" and an average price target of $321.89.

About NVIDIA

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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