NVIDIA Corporation $NVDA Stock Holdings Lifted by Dearborn Partners LLC

Key Points

• Dearborn Partners increased its NVIDIA stake by 248.4% in the second quarter to 158,102 shares valued at approximately $31.6 million. Institutional investors collectively own 65.27% of NVDA.
• NVIDIA insiders sold significant holdings recently, including transactions by executive Timothy Teter and director Mark Stevens; insiders sold 1.77 million shares worth about $399.5 million over the last quarter.
• NVIDIA reported strong results, with quarterly revenue up 105.9% year over year and EPS exceeding analyst estimates, while its $150 billion repurchase authorization supports investor confidence. However, China market-share losses, growing custom-chip competition and elevated valuation remain key risks.

Dearborn Partners LLC lifted its position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 248.4% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 158,102 shares of the computer hardware maker's stock after buying an additional 112,727 shares during the quarter. NVIDIA makes up about 1.5% of Dearborn Partners LLC's holdings, making the stock its 15th largest position. Dearborn Partners LLC's holdings in NVIDIA were worth $31,635,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in NVDA. Lifetime Wealth Management P.C. acquired a new position in NVIDIA during the fourth quarter worth about $26,000. Longview Financial Advisors Inc. purchased a new stake in shares of NVIDIA in the first quarter valued at about $27,000. Langley Wealth Management LLC purchased a new stake in shares of NVIDIA in the second quarter valued at about $34,000. Phillip James Consulting Co. acquired a new stake in shares of NVIDIA in the first quarter valued at approximately $40,000. Finally, Bard Associates Inc. grew its position in shares of NVIDIA by 8,866.7% in the second quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker's stock valued at $54,000 after purchasing an additional 266 shares during the last quarter. 65.27% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, EVP Timothy S. Teter sold 30,460 shares of the company'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 in the company, valued at approximately $598,810,648. This represents a 1.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the company's stock in a transaction 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 completion of the transaction, the director owned 2,336,531 shares of the company's stock, valued at $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,766,118 shares of company stock valued at $399,450,353 in the last quarter. 3.94% of the stock is currently owned by company insiders.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Vera Rubin and AI infrastructure momentum: NVIDIA has begun production of its next-generation Vera Rubin platform, which could support another major growth cycle as hyperscalers increase AI capital spending. Analysts see substantial upside if the ramp proceeds smoothly. NVIDIA Begins Vera Rubin Production
• Positive Sentiment: Networking expansion: NVIDIA and Cisco announced a planned 400Gb/s-per-lane Ultra-Dense Small Form Factor Pluggable optical module. The technology is designed to increase AI-factory bandwidth, improve power efficiency and strengthen NVIDIA’s position across the broader data-center stack. NVIDIA and Cisco Announce USFP
• Positive Sentiment: Additional demand and strategic investments: Scaleway plans an NVIDIA-powered computing site in Copenhagen, while NVIDIA is reportedly considering a minority investment in French healthcare platform Doctolib. Investors are also highlighting NVIDIA’s exceptional profit margins, large buyback authorization and potential software exposure through investments in AI companies.
• Neutral Sentiment: New ecosystem opportunities: NVIDIA-backed AI infrastructure partners, including Navitas, Bitdeer and oil-and-gas customers, continue developing NVIDIA-based systems. These announcements reinforce demand but may take time to produce material revenue for NVIDIA.
• Negative Sentiment: China market-share erosion: IDC reportedly estimates NVIDIA’s share of China’s AI-chip market has fallen to 34% as Huawei gains ground. Export restrictions and the possibility of permanently lower China data-center sales remain significant overhangs. NVIDIA China AI Chip Market Share Falls
• Negative Sentiment: Customer competition is increasing: Microsoft is preparing to rely more heavily on its own Maia chips for AI inference, raising concerns that custom silicon could reduce demand for NVIDIA GPUs among major cloud customers. Intel’s new inference-focused GPU also targets cost- and power-conscious buyers.
• Negative Sentiment: Valuation and funding concerns: Recent semiconductor weakness, profit-taking and warnings about an AI spending bubble have pressured the group. Firmus’s canceled IPO may signal tighter financing conditions for AI data-center projects, while elevated valuation expectations leave NVIDIA vulnerable if hyperscaler spending or product execution disappoints.

NVIDIA Stock Performance

Shares of NVDA opened at $228.52 on Wednesday. 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 $5.51 trillion, a price-to-earnings ratio of 28.89, a PEG ratio of 1.75 and a beta of 2.22. The company's 50 day simple moving average is $223.39 and its 200 day simple moving average is $210.37. NVIDIA Corporation has a 1 year low of $164.27 and a 1 year high of $243.37.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.09 by $0.13. The firm 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 revenue was up 105.9% compared to the same quarter last year. During the same quarter last year, the business earned $1.05 earnings per share. On average, sell-side analysts predict that NVIDIA Corporation will post 9.25 EPS for the current year.

NVIDIA announced that its board has approved a stock repurchase plan on Monday, September 28th that allows the company to repurchase $150.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to purchase up to 2.8% of its stock through open market purchases. Stock repurchase plans are usually 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 paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA's dividend payout ratio is currently 12.64%.

Wall Street Analysts Forecast Growth

NVDA has been the subject of a number of recent research reports. Piper Sandler began coverage on shares of NVIDIA in a research note on Wednesday, September 9th. They set an "overweight" rating and a $300.00 price objective for the company. Jefferies Financial Group restated a "buy" rating on shares of NVIDIA in a research report on Wednesday, August 26th. Royal Bank Of Canada upped their target price on NVIDIA from $300.00 to $330.00 and gave the company an "outperform" rating in a research note on Thursday, August 27th. Mizuho set a $315.00 target price on NVIDIA and gave the company an "outperform" rating in a report on Thursday, August 27th. Finally, JPMorgan Chase & Co. increased their target price on NVIDIA from $280.00 to $320.00 and gave the company an "overweight" rating in a 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 given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Buy" and a consensus price target 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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