NVIDIA Corporation $NVDA Stock Purchased by Northwestern Mutual Wealth Management Co.

Key Points

• Northwestern Mutual increased its NVIDIA stake by 2.2% in the second quarter, purchasing 126,986 shares for a total holding of 5.92 million shares valued at approximately $1.19 billion. Institutional investors own 65.27% of NVIDIA.
• NVIDIA insiders have been selling shares: executives and directors sold 1.77 million shares worth about $399.5 million over the past 90 days, including a director’s $144.1 million sale.
• The investment outlook remains broadly bullish but carries valuation risks. NVIDIA recently beat earnings and revenue expectations, announced a $150 billion buyback, and has a consensus “Buy” rating with an average $321.89 price target, while its near-record valuation and concerns over AI spending sustainability could increase volatility.

Northwestern Mutual Wealth Management Co. grew its position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 2.2% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 5,923,023 shares of the computer hardware maker's stock after purchasing an additional 126,986 shares during the quarter. NVIDIA makes up about 0.6% of Northwestern Mutual Wealth Management Co.'s investment portfolio, making the stock its 22nd largest position. Northwestern Mutual Wealth Management Co.'s holdings in NVIDIA were worth $1,185,138,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of NVDA. Gabelli Funds LLC lifted its position in NVIDIA by 0.8% in the 2nd quarter. Gabelli Funds LLC now owns 1,291,319 shares of the computer hardware maker's stock worth $258,380,000 after buying an additional 9,935 shares during the last quarter. Gamco Investors INC. ET AL grew its position in NVIDIA by 4.7% during the second quarter. Gamco Investors INC. ET AL now owns 347,468 shares of the computer hardware maker's stock valued at $69,525,000 after acquiring an additional 15,553 shares during the last quarter. Cadence Wealth Management LLC raised its stake in shares of NVIDIA by 13.0% during the second quarter. Cadence Wealth Management LLC now owns 5,108 shares of the computer hardware maker's stock worth $1,022,000 after acquiring an additional 588 shares in the last quarter. CFO4Life Group LLC raised its stake in shares of NVIDIA by 9.4% during the second quarter. CFO4Life Group LLC now owns 43,211 shares of the computer hardware maker's stock worth $8,646,000 after acquiring an additional 3,725 shares in the last quarter. Finally, Fortress Financial Group LLC lifted its holdings in shares of NVIDIA by 2.3% in the 2nd quarter. Fortress Financial Group LLC now owns 11,097 shares of the computer hardware maker's stock worth $2,220,000 after acquiring an additional 245 shares during the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other news, Director Mark A. Stevens sold 622,239 shares of the business's stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the completion of the transaction, the director directly 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Timothy S. Teter sold 30,460 shares of the stock in a transaction that occurred on Monday, September 21st. The shares were 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 in the company, valued at approximately $598,810,648. This trade represents a 1.12% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 1,766,118 shares of company stock worth $399,450,353. 3.94% of the stock is owned by corporate insiders.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: SpaceX may become a major new customer. SpaceX is reportedly seeking approximately $40 billion in debt financing—potentially including bank loans and investment-grade bonds—to purchase NVIDIA GPUs for its AI infrastructure. The proposed transaction would reinforce demand for NVIDIA’s chips, although the debt-funded nature of the purchase raises questions about customer financing risk. Apollo, banks in talks to finance SpaceX's $40 billion Nvidia GPU purchase
• Positive Sentiment: NVIDIA is expanding beyond data centers into PCs and edge AI. Microsoft unveiled the $2,599 Surface Laptop Ultra with an NVIDIA AI chip, while ASUS and other manufacturers began offering RTX Spark-powered systems for local AI workloads. This could broaden NVIDIA’s addressable market and create a new consumer and enterprise revenue stream. Microsoft to sell Surface Laptop Ultra containing Nvidia AI chip
• Positive Sentiment: AI infrastructure adoption remains widespread. NVIDIA-backed Lambda is reportedly targeting up to $4 billion in additional funding ahead of a planned IPO, while robotics, sovereign-AI and cloud-computing companies continue announcing deployments using NVIDIA platforms. These developments support the company’s ecosystem and long-term demand outlook. Nvidia-backed Lambda targets $4 billion raise
• Positive Sentiment: Analyst sentiment remains bullish. Morgan Stanley raised its price target, and consensus estimates cited by analysts imply additional upside. NVIDIA’s prior quarterly earnings beat and more-than-doubling revenue growth continue to support the bullish case.
• Neutral Sentiment: Market conditions are mixed. Rising oil prices tied to renewed Strait of Hormuz tensions pressured broader equities, while investors also remained focused on interest rates and Federal Reserve minutes.
• Negative Sentiment: Valuation and concentration risks are becoming more prominent. NVIDIA is approaching a $6 trillion market capitalization after a powerful rally, increasing the potential for profit-taking. Michael Burry has reportedly shifted to longer-dated put options on NVIDIA, citing the risk of an eventual AI downturn.
• Negative Sentiment: Trade and execution risks could weigh on the shares. Fresh tariff threats and concerns about margin compression, inventory levels and the sustainability of debt-financed AI spending are tempering enthusiasm. Investors may also be reluctant to chase the stock near record highs without evidence that earnings growth can continue to exceed elevated expectations.

NVIDIA Trading Down 0.8%

NASDAQ:NVDA opened at $237.36 on Thursday. The company has a 50-day moving average price of $221.38 and a 200-day moving average price of $208.88. The stock has a market cap of $5.72 trillion, a price-to-earnings ratio of 30.01, a P/E/G ratio of 1.85 and a beta of 2.22. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. NVIDIA Corporation has a 12 month low of $164.27 and a 12 month 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 earnings per share (EPS) for the quarter, beating the consensus estimate 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 return on equity of 96.04% and a net margin of 63.66%.The firm's quarterly revenue was up 105.9% on a year-over-year basis. During the same period in the prior year, the firm posted $1.05 EPS. Equities analysts predict that NVIDIA Corporation will post 9.25 EPS for the current year.

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

NVIDIA Announces Dividend

The firm 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 of this dividend was Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.4%. NVIDIA's dividend payout ratio (DPR) is 12.64%.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on NVDA shares. Melius Research set a $420.00 target price on shares of NVIDIA in a report on Thursday, August 27th. Cantor Fitzgerald reissued an "overweight" rating and issued a $350.00 price target on shares of NVIDIA in a research note on Thursday, October 1st. Itau BBA Securities cut their price target on shares of NVIDIA from $256.00 to $218.00 in a research report on Wednesday, June 24th. Sanford C. Bernstein reaffirmed a "buy" rating on shares of NVIDIA in a research note on Monday, September 21st. Finally, KeyCorp reiterated an "overweight" rating and issued a $330.00 price objective on shares of NVIDIA in a report on Monday, August 24th. Four analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, NVIDIA currently has a consensus rating of "Buy" and an average target price of $321.89.

NVIDIA Company 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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