NVIDIA Corporation $NVDA Stock: Covington Investment Advisors Inc. Boosts Position

Key Points

• Covington Investment Advisors increased its NVIDIA position by 2.1% to 163,112 shares worth approximately $32.6 million. Institutional investors and hedge funds collectively own 65.27% of NVIDIA.
• NVIDIA reported quarterly revenue of $96.22 billion and EPS of $2.22, exceeding analyst estimates, while recent partnerships and RTX Spark PC launches support continued AI, automotive and consumer growth.
• Despite a consensus “Buy” rating and a $321.89 price target, concerns remain over AI financing, customer-built alternatives and insider selling; NVIDIA shares recently traded at $214.13, down 1.4%.

Covington Investment Advisors Inc. boosted its position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 2.1% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 163,112 shares of the computer hardware maker's stock after purchasing an additional 3,413 shares during the quarter. NVIDIA makes up 4.2% of Covington Investment Advisors Inc.'s portfolio, making the stock its 4th biggest holding. Covington Investment Advisors Inc.'s holdings in NVIDIA were worth $32,637,000 at the end of the most recent quarter.

Several other large investors also recently bought and sold shares of NVDA. Jupiter Topco LLC acquired a new stake in shares of NVIDIA in the second quarter valued at approximately $16,156,076,000. Van ECK Associates Corp raised its position in shares of NVIDIA by 34.7% in the 2nd quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker's stock worth $15,176,771,000 after buying an additional 19,522,304 shares during the period. Amundi raised its position in shares of NVIDIA by 10.4% in the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock worth $23,329,141,000 after buying an additional 12,575,177 shares during the period. SEB Asset Management AB purchased a new position in shares of NVIDIA in the 1st quarter worth $1,692,807,000. Finally, Employees Provident Fund Board acquired a new position in NVIDIA in the fourth quarter valued at $1,243,336,000. Institutional investors and hedge funds own 65.27% of the company's stock.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: New RTX Spark laptops expand NVIDIA’s addressable market. Systems from ASUS, Dell, HP, Lenovo, Microsoft and MSI are now available starting at $2,599, combining Blackwell graphics, up to 128GB of memory and local AI capabilities. The launch could create a new consumer and developer revenue stream beyond data centers. NVIDIA RTX Spark PCs Available Today
• Positive Sentiment: Automotive and enterprise adoption continues. Volvo expanded its partnership with NVIDIA for automated-driving systems, while Adobe is integrating NVIDIA technology across Photoshop, Premiere and other creative tools. These agreements support longer-term demand for NVIDIA hardware and software. Volvo Cars expands automated driving partnership
• Positive Sentiment: Supply-chain investment and customer deployments remain strong. Taiwan is reportedly considering as much as $4 billion for Texas industrial parks serving NVIDIA suppliers, and customers continue deploying Blackwell systems. The developments reinforce demand, although they may take time to affect revenue. Taiwan Texas industrial parks
• Neutral Sentiment: NVIDIA is broadening its software and AI-model ecosystem. Paid offerings such as AI Enterprise and Mission Control, along with Nemotron open models and partnerships with AI startups, could make earnings less dependent on hardware. However, the articles provide no near-term financial contribution.
• Negative Sentiment: AI financing concerns are the main pressure. CoreWeave’s debt has reportedly traded at distressed yields, raising questions about whether highly leveraged customers can continue funding data-center expansion. Higher Treasury yields and inflation concerns are also making large AI projects more expensive. CoreWeave financing worries
• Negative Sentiment: Investors are questioning AI growth expectations. OpenAI’s reported $50 billion revenue run rate was below the roughly $68 billion previously anticipated, prompting concern that AI demand may mature more slowly. Microsoft’s development of custom Maia chips also highlights the risk of customers developing alternatives to NVIDIA GPUs. OpenAI revenue expectations
• Negative Sentiment: Reported insider selling adds a sentiment overhang. Recent data showed NVIDIA insiders made numerous sales and no open-market purchases over the past six months, though such transactions may reflect planned diversification rather than a change in business outlook.

Insider Activity at NVIDIA

In other news, Director Mark A. Stevens sold 622,239 shares of NVIDIA stock in a transaction that occurred on 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 transaction, the director owned 2,336,531 shares of the company's stock, valued at $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Timothy S. Teter sold 30,460 shares of the firm's stock in a transaction 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 transaction, the executive vice president directly 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,766,118 shares of company stock valued at $399,450,353 over the last ninety days. Insiders own 3.94% of the company's stock.

NVIDIA Stock Down 1.4%

Shares of NVIDIA stock opened at $214.13 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. NVIDIA Corporation has a fifty-two week low of $164.27 and a fifty-two week high of $243.37. The business has a 50-day moving average price of $223.20 and a 200 day moving average price of $211.10. The firm has a market cap of $5.16 trillion, a P/E ratio of 31.48, a P/E/G ratio of 1.67 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping analysts' consensus estimates of $2.09 by $0.13. The business had revenue of $96.22 billion for the quarter, compared to analysts' expectations 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% compared to the same quarter last year. During the same quarter last year, the company earned $1.05 EPS. On average, sell-side analysts forecast that NVIDIA Corporation will post 9.27 earnings per share for the current fiscal year.

NVIDIA declared that its board has approved a stock repurchase plan on Monday, September 28th that permits the company to buy back $150.00 billion in outstanding shares. This repurchase authorization permits the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Share repurchase plans are often a sign that the company's leadership believes its shares are undervalued.

NVIDIA Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were given a $0.25 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA's payout ratio is 12.64%.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the company. China Renaissance boosted their price target on NVIDIA from $319.00 to $330.00 and gave the company a "buy" rating in a research report on Monday, August 31st. HSBC raised their price objective on NVIDIA from $360.00 to $365.00 in a report on Thursday, August 27th. Rothschild & Co Redburn raised their price objective on NVIDIA from $300.00 to $325.00 in a report on Thursday, August 27th. Phillip Securities lifted their price objective on NVIDIA from $285.00 to $300.00 and gave the company a "buy" rating in a research note on Monday, August 31st. Finally, Rosenblatt Securities reiterated a "buy" rating and set a $390.00 target price on shares of NVIDIA in a report on Tuesday, September 29th. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, NVIDIA currently has a consensus rating of "Buy" and a consensus target price of $321.89.

NVIDIA Profile

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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