NVIDIA Corporation $NVDA Stock Sold by Matters Capital LLC

Key Points

• Matters Capital reduced its NVIDIA stake by 10.3% in the second quarter, selling 2,476 shares and retaining 21,488 shares worth approximately $4.3 million. Institutional investors collectively own 65.27% of NVIDIA.
• Analyst sentiment remains strongly bullish: the stock has a consensus “Buy” rating and an average price target of $321.89, supported by NVIDIA’s quarterly revenue growth of 105.9% and earnings that exceeded estimates.
• NVIDIA’s shares have rallied near their one-year high, but valuation, concentration, trade and execution risks remain concerns. The company also authorized a $150 billion share-buyback program and pays a $0.25 quarterly dividend.

Matters Capital LLC cut its holdings in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 10.3% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 21,488 shares of the computer hardware maker's stock after selling 2,476 shares during the period. NVIDIA comprises 3.0% of Matters Capital LLC's holdings, making the stock its 9th largest holding. Matters Capital LLC's holdings in NVIDIA were worth $4,300,000 as of its most recent SEC filing.

Several other hedge funds have also recently made changes to their positions in the business. J. Stern & Co. LLP lifted its stake in shares of NVIDIA by 13,709.1% in the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker's stock valued at $23,454,297,000 after purchasing an additional 124,849,603 shares during the last quarter. Amundi increased its position in shares of NVIDIA by 10.4% during the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock valued at $23,329,141,000 after purchasing an additional 12,575,177 shares during the last quarter. SEB Asset Management AB bought a new position in shares of NVIDIA during the 1st quarter valued at approximately $1,692,807,000. Employees Provident Fund Board purchased a new stake in NVIDIA during the 4th quarter valued at $1,243,336,000. Finally, H&H International Investment LLC raised its holdings in NVIDIA by 91.3% during the 1st quarter. H&H International Investment LLC now owns 13,843,775 shares of the computer hardware maker's stock valued at $2,414,354,000 after buying an additional 6,606,675 shares during the period. 65.27% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

NVDA has been the subject of several recent analyst reports. HSBC lifted their price objective on shares of NVIDIA from $360.00 to $365.00 in a research note on Thursday, August 27th. Citigroup reaffirmed a "buy" rating and set a $315.00 price target (up from $300.00) on shares of NVIDIA in a research note on Thursday, August 27th. Raymond James Financial set a $515.00 price target on shares of NVIDIA and gave the company a "strong-buy" rating in a report on Thursday, August 27th. Wells Fargo & Company set a $210.00 target price on NVIDIA in a research report on Friday, October 2nd. Finally, Rosenblatt Securities reaffirmed a "buy" rating and set a $390.00 target price on shares of NVIDIA in a research note on Tuesday, September 29th. Four research analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Buy" and an average target price of $321.89.

NVIDIA News Summary

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 Price Performance

NVIDIA stock opened at $237.36 on Thursday. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The stock has a market cap of $5.72 trillion, a price-to-earnings ratio of 30.01, a price-to-earnings-growth ratio of 1.85 and a beta of 2.22. The firm has a 50-day moving average of $221.38 and a two-hundred day moving average of $208.88. 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 issued its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping analysts' consensus estimates of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. During the same period last year, the company posted $1.05 earnings per share. The company's quarterly revenue was up 105.9% compared to the same quarter last year. On average, research analysts forecast that NVIDIA Corporation will post 9.25 earnings per share for the current year.

NVIDIA Announces Dividend

The company also recently disclosed 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 dividend payout ratio (DPR) is presently 12.64%.

NVIDIA declared that its Board of Directors has initiated a stock buyback plan on Monday, September 28th that allows the company to buyback $150.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Insiders Place Their Bets

In other NVIDIA news, EVP Timothy 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 sale, the executive vice president directly owned 2,687,660 shares of the company's stock, valued at $598,810,648. The trade was a 1.12% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at 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 company'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 completion of the sale, the director owned 2,336,531 shares of the company's stock, valued at $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 1,766,118 shares of company stock worth $399,450,353 in the last ninety days. 3.94% of the stock is owned by company insiders.

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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