NVIDIA Corporation $NVDA Stock: Light Street Capital Management LLC Reduces Position

Key Points

• Light Street Capital Management cut its NVIDIA stake by 49.8% in the second quarter, selling 135,494 shares and retaining 136,720 shares worth approximately $27.4 million. Institutional investors collectively own 65.27% of NVIDIA.
• NVIDIA reported strong quarterly results, with revenue rising 105.9% year over year to $96.22 billion and EPS of $2.22, beating consensus estimates. Analysts remain bullish, with a consensus “Buy” rating and an average price target of $321.89.
• Growth prospects from new AI infrastructure and networking products are balanced by risks including declining China market share, increasing competition from customers’ custom chips, elevated valuation concerns and tighter financing conditions for AI data centers.

Light Street Capital Management LLC lowered its holdings in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 49.8% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 136,720 shares of the computer hardware maker's stock after selling 135,494 shares during the period. NVIDIA makes up about 3.1% of Light Street Capital Management LLC's holdings, making the stock its 13th biggest position. Light Street Capital Management LLC's holdings in NVIDIA were worth $27,356,000 as of its most recent SEC filing.

A number of other large investors have also recently modified their holdings of the business. Lifetime Wealth Management P.C. bought a new stake in shares of NVIDIA in the 4th quarter worth approximately $26,000. Longview Financial Advisors Inc. purchased a new stake in shares of NVIDIA in the 1st quarter worth about $27,000. Langley Wealth Management LLC bought a new stake in NVIDIA in the second quarter worth $34,000. Phillip James Consulting Co. bought a new position in shares of NVIDIA during the first quarter valued at $40,000. Finally, Bard Associates Inc. grew its position in NVIDIA by 8,866.7% during the second quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker's stock valued at $54,000 after buying an additional 266 shares during the period. Institutional investors own 65.27% of the company's stock.

Trending Headlines about NVIDIA

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.

Analyst Upgrades and Downgrades

NVDA has been the topic of several recent analyst reports. Citigroup reissued a "buy" rating and set a $315.00 target price (up from $300.00) on shares of NVIDIA in a research note on Thursday, August 27th. Wedbush upped their target price on shares of NVIDIA from $330.00 to $345.00 and gave the stock an "outperform" rating in a research note on Thursday, August 27th. Mizuho set a $315.00 price target on shares of NVIDIA and gave the company an "outperform" rating in a report on Thursday, August 27th. KeyCorp reiterated an "overweight" rating and issued a $330.00 price target on shares of NVIDIA in a research note on Monday, August 24th. Finally, Truist Financial lifted their target price on NVIDIA from $307.00 to $346.00 and gave the stock a "buy" rating in a report on Thursday, August 27th. Five equities research analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, NVIDIA presently has a consensus rating of "Buy" and an average price target of $321.89.

NVIDIA Price Performance

NASDAQ:NVDA opened at $228.52 on Wednesday. The stock has a market cap of $5.51 trillion, a PE ratio of 28.89, a P/E/G ratio of 1.75 and a beta of 2.22. 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 stock has a 50 day moving average price of $223.39 and a 200 day moving average price of $210.37. NVIDIA Corporation has a one year low of $164.27 and a one year high of $243.37.

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

NVIDIA Dividend Announcement

The company also recently declared 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 payout ratio is 12.64%.

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

Insiders Place Their Bets

In related news, EVP Timothy S. Teter sold 30,460 shares of the firm's stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the transaction, the executive vice president owned 2,687,660 shares of the company's stock, valued at $598,810,648. This trade represents a 1.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 34,918 shares of the business's stock in a transaction on 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. This represents a 4.36% 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. Over the last quarter, insiders have sold 1,766,118 shares of company stock valued at $399,450,353. 3.94% of the stock is owned by corporate insiders.

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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