NVIDIA Corporation $NVDA Stake Trimmed by Cypress Asset Management Inc. TX

Key Points

• Cypress Asset Management reduced its NVIDIA stake by 5.6% in the second quarter, selling 9,367 shares and retaining 157,815 shares valued at approximately $31.6 million. NVIDIA remains the firm’s largest holding, representing 6.1% of its portfolio.
• NVIDIA reported quarterly EPS of $2.22, beating estimates of $2.09, while revenue rose 105.9% year over year to $96.22 billion. The company also authorized a $150 billion share-repurchase program, equivalent to up to 2.8% of outstanding shares.
• Analyst sentiment remains strongly positive, with a consensus “Buy” rating and an average price target of $324.14, though investors are monitoring valuation, potential AI infrastructure spending fatigue, competition from China, and concerns about financing arrangements for AI customers.

Cypress Asset Management Inc. TX cut its position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 5.6% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 157,815 shares of the computer hardware maker's stock after selling 9,367 shares during the quarter. NVIDIA accounts for 6.1% of Cypress Asset Management Inc. TX's portfolio, making the stock its largest position. Cypress Asset Management Inc. TX's holdings in NVIDIA were worth $31,577,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also made changes to their positions in the company. Bank of America Corp DE boosted its stake 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 worth $33,345,453,000 after purchasing an additional 4,019,505 shares during the period. Invesco Ltd. grew its position in NVIDIA by 0.3% during the 4th quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker's stock worth $26,714,167,000 after purchasing an additional 446,178 shares in the last quarter. Amundi raised its stake in NVIDIA by 10.4% during the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock valued at $23,329,141,000 after purchasing an additional 12,575,177 shares during the period. J. Stern & Co. LLP raised its stake 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 purchasing an additional 124,849,603 shares during the period. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of NVIDIA by 0.6% in the first quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker's stock valued at $16,479,126,000 after purchasing an additional 555,221 shares in the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

NVIDIA Price Performance

NASDAQ NVDA opened at $230.86 on Friday. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The stock has a market capitalization of $5.56 trillion, a PE ratio of 29.19, a price-to-earnings-growth ratio of 1.76 and a beta of 2.22. NVIDIA Corporation has a 12-month low of $164.27 and a 12-month high of $236.54. The company has a 50 day moving average price of $218.20 and a two-hundred day moving average price of $207.30.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping the consensus estimate of $2.09 by $0.13. The company 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%. NVIDIA's quarterly revenue was up 105.9% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.05 EPS. As a group, equities analysts predict that NVIDIA Corporation will post 9.25 earnings per share for the current fiscal year.

NVIDIA Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 0.4%. The ex-dividend date was Thursday, September 10th. NVIDIA's dividend payout ratio (DPR) is 12.64%.

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

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Barclays raised its estimate for NVIDIA’s 2027 hyperscaler revenue to approximately $401 billion, above its prior $370 billion forecast. The estimate reflects accelerating data-center investment by major cloud providers. Nvidia stock gains as Barclays sees $401B hyperscaler revenue in 2027
• Positive Sentiment: NVIDIA authorized an additional $150 billion share repurchase, bringing total buyback capacity to $235 billion through 2028. The move signals management confidence in future cash generation and could support earnings per share. Nvidia authorizes $150B buyback
• Positive Sentiment: Analysts remain constructive: Cantor Fitzgerald reaffirmed an overweight rating with a $350 price target, while other coverage highlights NVIDIA’s strong earnings prospects, rising cash flow and demand for its Vera Rubin platform. 2 Growth Stocks With Strong Earnings Prospects to Buy in October
• Positive Sentiment: New ecosystem activity, including NVIDIA’s participation in GMI Cloud’s $668 million financing and expanded digital-twin and AI-safety initiatives, reinforces demand for its full-stack AI platform.
• Neutral Sentiment: The stock is nearing its all-time high, making upcoming hyperscaler capital-expenditure updates and future earnings results important catalysts for sustaining momentum. Nvidia stock approaches record territory
• Negative Sentiment: Investors are debating NVIDIA’s financing arrangements for AI customers, which critics describe as potentially circular. Concerns about customer credit quality and overinvestment could increase volatility if AI infrastructure spending slows. Nvidia’s bet that its chips can finance the AI boom
• Negative Sentiment: China’s efforts to develop software for Huawei’s competing AI chips and the broader risk of hyperscaler CapEx fatigue remain longer-term threats to NVIDIA’s market share and valuation.

Analyst Ratings Changes

Several brokerages recently issued reports on NVDA. Piper Sandler assumed coverage on NVIDIA in a research note on Wednesday, September 9th. They issued an "overweight" rating and a $300.00 price objective for the company. Rosenblatt Securities restated a "buy" rating and set a $390.00 price target on shares of NVIDIA in a report on Tuesday. Rothschild & Co Redburn boosted their price objective on shares of NVIDIA from $300.00 to $325.00 in a research report on Thursday, August 27th. Royal Bank Of Canada increased their target price on shares of NVIDIA from $300.00 to $330.00 and gave the stock an "outperform" rating in a research report on Thursday, August 27th. Finally, Wedbush lifted their target price on shares of NVIDIA from $330.00 to $345.00 and gave the company an "outperform" rating in a research note on Thursday, August 27th. Four equities research analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Buy" and an average target price of $324.14.

Insiders Place Their Bets

In related news, Director Mark A. Stevens sold 622,239 shares of the firm's stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the transaction, the director directly owned 2,336,531 shares of the company's stock, valued at approximately $541,187,310.22. This trade represents a 21.03% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Timothy S. Teter sold 30,460 shares of the business's stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the sale, the executive vice president owned 2,687,660 shares of the company's stock, valued at approximately $598,810,648. This trade represents a 1.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,766,118 shares of company stock valued at $399,450,353 over the last quarter. Insiders own 3.94% of the company's stock.

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.

Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.