NVIDIA Corporation $NVDA Stock Holdings Cut by 49 Wealth Management LLC

Key Points

• 49 Wealth Management LLC cut its NVIDIA stake by 57.7% in the second quarter, selling 13,328 shares and retaining 9,760 shares valued at approximately $1.95 million. Institutional investors collectively own 65.27% of the company.
• NVIDIA reported stronger-than-expected quarterly results, with revenue up 105.9% year over year, and authorized a $150 billion share-buyback plan. Analysts remain broadly bullish, with an average “Buy” rating and a $321.89 price target.
• Potential concerns include significant insider selling, rising competition from custom AI chips, and NVIDIA’s declining AI-chip market share in China as Huawei gains ground.

49 Wealth Management LLC reduced its stake in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 57.7% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 9,760 shares of the computer hardware maker's stock after selling 13,328 shares during the quarter. 49 Wealth Management LLC's holdings in NVIDIA were worth $1,953,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently modified their holdings of the stock. Boyd Wealth Management LLC lifted its stake in shares of NVIDIA by 273.4% during the 2nd quarter. Boyd Wealth Management LLC now owns 9,145 shares of the computer hardware maker's stock worth $1,830,000 after buying an additional 6,696 shares during the last quarter. Ally Financial Inc. boosted its holdings in shares of NVIDIA by 10.3% during the 2nd quarter. Ally Financial Inc. now owns 172,000 shares of the computer hardware maker's stock worth $34,415,000 after buying an additional 16,000 shares during the period. Altshuler Shaham Ltd grew its stake in NVIDIA by 6,451.9% in the 1st quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker's stock valued at $111,134,000 after buying an additional 627,510 shares during the last quarter. Storen Legacy Partners LLC acquired a new position in NVIDIA in the 4th quarter valued at about $1,350,000. Finally, Baker Tilly Wealth Management LLC raised its holdings in NVIDIA by 7.4% in the 2nd quarter. Baker Tilly Wealth Management LLC now owns 71,898 shares of the computer hardware maker's stock valued at $14,386,000 after acquiring an additional 4,958 shares during the period. 65.27% of the stock is owned by institutional investors.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA announced a five-year, $250 million compute commitment to support U.K. AI safety and security research. The initiative strengthens NVIDIA’s relationships with governments, universities and AI developers while promoting its hardware and software ecosystem. NVIDIA pledges $250 million to boost UK AI safety research
• Positive Sentiment: New ecosystem announcements highlighted continued demand for NVIDIA technology. LSEG is using NVIDIA GPUs to accelerate historical market-data processing, while NVIDIA introduced tools including cuPotential for molecular simulation and expanded collaborations in AI-defined chip manufacturing. LSEG teams up with NVIDIA for faster market data processing
• Positive Sentiment: State Street launched a sector ETF designed to give NVIDIA a 20.93% allocation, above the 15.41% weighting in its comparable fund, potentially creating incremental demand for NVDA shares. New State Street Sector ETFs Give Biggest Stocks Full Weight
• Neutral Sentiment: CEO Jensen Huang said NVIDIA would stop supplying chips to customers developing unsafe AI systems. The stance may improve regulatory and reputational positioning, although broader AI-safety concerns could increase scrutiny of the company and industry. Nvidia, Anthropic Weigh In On AI Safeguards
• Negative Sentiment: Investors are assessing competitive threats from Microsoft’s Maia 300 architecture and Intel’s lower-cost, air-cooled Crescent Island inference GPU. Custom accelerators and cheaper inference solutions could pressure NVIDIA’s pricing, growth assumptions and market share over time. Microsoft Just Unveiled a Brand-New AI Chip
• Negative Sentiment: IDC reportedly estimates NVIDIA’s China AI-chip market share has fallen to 34% as Huawei gains ground, underscoring export restrictions and rising local competition. Separately, investor Michael Burry is betting against chip stocks, reinforcing valuation and AI-spending concerns. NVIDIA’s China AI chip market share falls to 34%

Insider Transactions at NVIDIA

In other NVIDIA news, CFO Colette Kress sold 34,918 shares of the company's stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total value 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 approximately $167,595,812.15. This represents a 4.36% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of the firm's stock in a transaction 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 represents a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Insiders own 3.94% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have issued reports on NVDA shares. Jefferies Financial Group restated a "buy" rating on shares of NVIDIA in a research report on Wednesday, August 26th. Sanford C. Bernstein reiterated a "buy" rating on shares of NVIDIA in a research report on Monday, September 21st. HSBC lifted their target price on NVIDIA from $360.00 to $365.00 in a report on Thursday, August 27th. Rosenblatt Securities reissued a "buy" rating and issued a $390.00 target price on shares of NVIDIA in a research report on Tuesday, September 29th. Finally, Citigroup reissued a "buy" rating and issued a $315.00 target price (up from $300.00) on shares of NVIDIA in a research report on Thursday, August 27th. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Buy" and an average target price of $321.89.

NVIDIA Price Performance

NVIDIA stock opened at $221.30 on Thursday. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. NVIDIA Corporation has a 52 week low of $164.27 and a 52 week high of $243.37. The stock has a market capitalization of $5.33 trillion, a P/E ratio of 27.98, a price-to-earnings-growth ratio of 1.77 and a beta of 2.22. The stock has a fifty day moving average of $223.43 and a 200-day moving average of $210.73.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping the consensus estimate of $2.09 by $0.13. The business had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. NVIDIA'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 earned $1.05 EPS. On average, sell-side analysts expect that NVIDIA Corporation will post 9.25 earnings per share for the current fiscal year.

NVIDIA announced that its Board of Directors has approved a stock buyback plan on Monday, September 28th that authorizes the company to buy back $150.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to repurchase up to 2.8% of its shares through open market purchases. Stock repurchase plans are usually an indication that the company's leadership believes its stock is undervalued.

NVIDIA Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were given 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 yield of 0.5%. NVIDIA's payout ratio is currently 12.64%.

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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