NVIDIA Corporation $NVDA Stock Position Trimmed by Alyeska Investment Group L.P.

Key Points

• Alyeska Investment Group cut its NVIDIA stake by 79% in the second quarter, selling 4.5 million shares and retaining 1.2 million shares valued at approximately $239.7 million. Institutional investors and hedge funds collectively own 65.27% of NVIDIA.
• NVIDIA reported quarterly adjusted earnings of $2.22 per share and revenue of $96.22 billion, exceeding analyst expectations, while revenue increased 105.9% year over year.
• The company approved a $150 billion share-repurchase program, while analysts maintained an overall “Buy” consensus with a $321.89 average price target; insiders, however, sold more than $399 million of stock over the prior 90 days.

Alyeska Investment Group L.P. decreased its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 79.0% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,197,901 shares of the computer hardware maker's stock after selling 4,500,077 shares during the quarter. NVIDIA makes up 0.6% of Alyeska Investment Group L.P.'s holdings, making the stock its 27th biggest position. Alyeska Investment Group L.P.'s holdings in NVIDIA were worth $239,688,000 as of its most recent SEC filing.

Other hedge funds have also added to or reduced their stakes in the company. Harvest Management LLC lifted its holdings in NVIDIA by 7.9% during the 2nd quarter. Harvest Management LLC now owns 2,533 shares of the computer hardware maker's stock worth $507,000 after purchasing an additional 186 shares during the last quarter. Flputnam Investment Management Co. lifted its holdings in shares of NVIDIA by 8.9% during the second quarter. Flputnam Investment Management Co. now owns 1,717,562 shares of the computer hardware maker's stock worth $343,667,000 after buying an additional 139,872 shares in the last quarter. Provident Trust Co. bought a new stake in shares of NVIDIA in the second quarter valued at about $212,000. Nichols & Pratt Advisers LLP MA grew its stake in shares of NVIDIA by 1.7% in the second quarter. Nichols & Pratt Advisers LLP MA now owns 32,010 shares of the computer hardware maker's stock valued at $6,405,000 after acquiring an additional 540 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. increased its position in NVIDIA by 2.2% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 5,923,023 shares of the computer hardware maker's stock worth $1,185,138,000 after acquiring an additional 126,986 shares during the period. Institutional investors and hedge funds own 65.27% of the company's stock.

NVIDIA Trading Down 1.8%

NVDA opened at $217.23 on Friday. The stock has a market capitalization of $5.24 trillion, a price-to-earnings ratio of 27.46, a P/E/G ratio of 1.71 and a beta of 2.22. 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 twelve month low of $164.27 and a twelve month high of $243.37. The company has a 50-day simple moving average of $223.40 and a 200 day simple moving average of $211.08.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, beating the consensus estimate 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%. The business's quarterly revenue was up 105.9% compared to the same quarter last year. During the same period last year, the firm earned $1.05 EPS. Analysts predict 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. 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 annualized dividend and a dividend yield of 0.5%. NVIDIA's dividend payout ratio (DPR) is currently 12.64%.

NVIDIA declared that its Board of Directors has approved a stock buyback program on Monday, September 28th that allows the company to repurchase $150.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Share buyback programs are often a sign that the company's board believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on NVDA. Weiss Ratings reiterated a "buy (b)" rating on shares of NVIDIA in a research note on Friday, October 2nd. Wells Fargo & Company set a $210.00 price objective on shares of NVIDIA in a report on Friday, October 2nd. DZ Bank restated a "buy" rating on shares of NVIDIA in a research report on Wednesday, August 26th. Evercore set a $465.00 target price on shares of NVIDIA and gave the stock an "outperform" rating in a report on Thursday, August 27th. Finally, Melius Research set a $420.00 target price on shares of NVIDIA 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 given a Hold rating to the stock. According to data from MarketBeat, NVIDIA presently has a consensus rating of "Buy" and a consensus target price of $321.89.

Insider Buying and Selling

In other news, CFO Colette Kress sold 34,918 shares of NVIDIA stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total value of $7,648,787.90. Following the transaction, the chief financial officer owned 765,103 shares in the company, valued at approximately $167,595,812.15. This trade represents a 4.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of the business'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 $541,187,310.22. This trade represents a 21.03% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Corporate insiders own 3.94% of the company's stock.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Automotive expansion: Volvo Cars is expanding its long-running partnership with NVIDIA, adopting three NVIDIA hardware and software components for automated driving systems designed for urban streets and highways. This strengthens NVIDIA’s position in physical AI and autonomous vehicles. Volvo Cars expands automated driving partnership with Nvidia
• Positive Sentiment: Broader enterprise adoption: Adobe and NVIDIA expanded their collaboration to optimize Photoshop, Premiere, Substance 3D, Frame.io and Brand Concierge for faster AI-powered creation. LSEG also selected NVIDIA GPUs to accelerate analysis of its large Tick History dataset, supporting demand beyond hyperscale cloud providers. Adobe and NVIDIA Expand Collaboration to Speed Agentic Creation
• Positive Sentiment: Demand remains substantial: QumulusAI put all GPUs covered by a $71.9 million, three-year NVIDIA Blackwell agreement into production, while industry coverage continues to highlight supply constraints and extensive hyperscaler AI spending. These developments support NVIDIA’s revenue outlook, although they do not eliminate financing risks. QumulusAI Blackwell agreement
• Neutral Sentiment: AI safety initiatives: NVIDIA committed $250 million in computing resources over five years for U.K. agentic AI safety and security research. The move may improve NVIDIA’s regulatory and reputational position, but it is primarily a strategic investment rather than a near-term earnings catalyst. Nvidia pledges $250 million to boost UK AI safety research
• Neutral Sentiment: Political and governance attention: NVIDIA confirmed a multimillion-dollar donation to President Trump’s White House ballroom project, while CEO Jensen Huang discussed working with Chinese AI companies on safety and potentially withholding chips from irresponsible customers. These developments could generate reputational or regulatory scrutiny without directly changing near-term results. Nvidia and Cisco donations
• Negative Sentiment: Macro and financing concerns dominated: Rising Treasury yields and hotter inflation data encouraged investors to reduce exposure to high-growth AI stocks. Markets are increasingly questioning whether cloud providers and neoclouds can fund the infrastructure spending required to support NVIDIA’s growth. Rate pressure versus AI demand
• Negative Sentiment: Competition and valuation rotation: Analysts pointed to Micron’s lower valuation and improving AI-related margins as a more attractive alternative, while Broadcom, AMD and Microsoft’s custom-chip efforts reinforce concerns that NVIDIA’s market share and pricing power could face pressure. Micron versus NVIDIA

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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