NVIDIA Corporation $NVDA Stock: Rakuten Investment Management Inc. Boosts Stake

Key Points

• Rakuten Investment Management increased its NVIDIA stake by 12.4% in the second quarter, adding 527,365 shares to own 4.77 million shares valued at approximately $929.6 million. Institutional investors collectively hold 65.27% of NVIDIA’s stock.
• NVIDIA reported a strong quarter, with revenue up 105.9% year over year to $96.22 billion and EPS of $2.22, exceeding analyst expectations. The company also authorized a $150 billion share-repurchase program.
• Despite bullish analyst sentiment and a consensus price target of $321.89, NVIDIA faces competitive and geopolitical risks, including rival AI chips from Microsoft and Intel and declining China market share as Huawei gains ground.

Rakuten Investment Management Inc. lifted its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 12.4% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 4,767,757 shares of the computer hardware maker's stock after purchasing an additional 527,365 shares during the period. NVIDIA accounts for 2.7% of Rakuten Investment Management Inc.'s holdings, making the stock its 5th biggest holding. Rakuten Investment Management Inc.'s holdings in NVIDIA were worth $929,570,000 as of its most recent SEC filing.

Several other institutional investors also recently modified their holdings of NVDA. Boyd Wealth Management LLC increased its holdings in shares of NVIDIA by 273.4% during the second quarter. Boyd Wealth Management LLC now owns 9,145 shares of the computer hardware maker's stock valued at $1,830,000 after acquiring an additional 6,696 shares in the last quarter. Ally Financial Inc. lifted its holdings in shares of NVIDIA by 10.3% in the 2nd quarter. Ally Financial Inc. now owns 172,000 shares of the computer hardware maker's stock worth $34,415,000 after purchasing an additional 16,000 shares in the last quarter. Altshuler Shaham Ltd grew its position 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 purchasing an additional 627,510 shares during the period. Storen Legacy Partners LLC acquired a new stake in NVIDIA in the 4th quarter valued at $1,350,000. Finally, Baker Tilly Wealth Management LLC grew its position 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 purchasing an additional 4,958 shares during the period. Institutional investors own 65.27% of the company's stock.

More NVIDIA News

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%

NVIDIA Trading Down 3.2%

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 fifty-two week low of $164.27 and a fifty-two week high of $243.37. The stock has a market cap of $5.33 trillion, a P/E ratio of 27.98, a PEG ratio of 1.77 and a beta of 2.22. The firm's fifty day moving average price is $223.43 and its 200-day moving average price is $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 EPS for the quarter, beating the consensus estimate 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 analyst estimates of $92.27 billion. During the same period in the prior year, the company earned $1.05 EPS. The company's revenue was up 105.9% on a year-over-year basis. Equities research analysts forecast that NVIDIA Corporation will post 9.25 earnings per share for the current fiscal year.

NVIDIA declared that its board has authorized a share buyback program on Monday, September 28th that permits the company to repurchase $150.00 billion in shares. This repurchase authorization permits the computer hardware maker to buy up to 2.8% of its shares through open market purchases. Stock repurchase programs are usually an indication that the company's management believes its shares are undervalued.

NVIDIA Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date was Thursday, September 10th. NVIDIA's dividend payout ratio is currently 12.64%.

Insider Activity at NVIDIA

In other NVIDIA news, EVP Timothy S. Teter sold 30,460 shares of NVIDIA stock in a transaction on 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 completion of the transaction, the executive vice president owned 2,687,660 shares in the company, valued at approximately $598,810,648. The trade was a 1.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 34,918 shares of the firm'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 transaction of $7,648,787.90. Following the sale, the chief financial officer directly owned 765,103 shares of the company's stock, valued at $167,595,812.15. This trade represents a 4.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,766,118 shares of company stock worth $399,450,353 over the last quarter. 3.94% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

Several brokerages recently issued reports on NVDA. DA Davidson reaffirmed a "buy" rating and set a $300.00 target price on shares of NVIDIA in a research report on Thursday, August 27th. Rosenblatt Securities reissued a "buy" rating and issued a $390.00 price target on shares of NVIDIA in a report on Tuesday, September 29th. Wedbush increased their price target on shares of NVIDIA from $330.00 to $345.00 and gave the company an "outperform" rating in a research report on Thursday, August 27th. Benchmark restated a "buy" rating and set a $335.00 price objective on shares of NVIDIA in a report on Thursday, August 27th. Finally, UBS Group reaffirmed a "buy" rating on shares of NVIDIA in a research report on Friday, October 9th. Five research 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 stock. According to data from MarketBeat, the company has an average rating of "Buy" and a consensus price target of $321.89.

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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