NVIDIA Corporation $NVDA Stock Sold by North Star Asset Management Inc.

Key Points

• North Star Asset Management reduced its NVIDIA stake by 3.3% in the second quarter, selling 6,347 shares and retaining 183,163 shares valued at approximately $36.6 million. Institutional investors collectively own 65.27% of NVIDIA.
• NVIDIA reported stronger-than-expected quarterly results, with $2.22 in EPS and $96.22 billion in revenue, up 105.9% year over year. The company also authorized a $150 billion share-repurchase program and pays a $0.25 quarterly dividend.
• Wall Street remains broadly bullish, with a consensus “Buy” rating and an average price target of $321.89, although risks include declining China market share, growing custom-chip competition and elevated valuation concerns.

North Star Asset Management Inc. lessened its holdings in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 3.3% in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 183,163 shares of the computer hardware maker's stock after selling 6,347 shares during the period. NVIDIA makes up 1.4% of North Star Asset Management Inc.'s portfolio, making the stock its 19th biggest position. North Star Asset Management Inc.'s holdings in NVIDIA were worth $36,649,000 as of its most recent SEC filing.

Several other hedge funds have also recently added to or reduced their stakes in the business. LightSquare Wealth Management LLC raised its holdings in shares of NVIDIA by 0.3% in the 2nd quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker's stock worth $3,741,000 after buying an additional 49 shares in the last quarter. Defender Capital LLC. lifted its position in shares of NVIDIA by 0.7% during the 2nd quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker's stock worth $1,507,000 after buying an additional 50 shares during the period. Kooman & Associates boosted its stake in NVIDIA by 0.6% in the 2nd quarter. Kooman & Associates now owns 8,464 shares of the computer hardware maker's stock valued at $1,694,000 after buying an additional 50 shares in the last quarter. Roof Eidam Maycock Peralta LLC boosted its stake in NVIDIA by 0.3% in the 2nd quarter. Roof Eidam Maycock Peralta LLC now owns 18,827 shares of the computer hardware maker's stock valued at $3,767,000 after buying an additional 50 shares in the last quarter. Finally, Persium Advisors LLC boosted its stake in NVIDIA by 3.5% in the 2nd quarter. Persium Advisors LLC now owns 1,466 shares of the computer hardware maker's stock valued at $293,000 after buying an additional 50 shares in the last quarter. Institutional investors and hedge funds own 65.27% of the company's stock.

NVIDIA Trading Up 1.0%

NVDA stock opened at $228.52 on Wednesday. The business has a fifty day moving average price of $223.39 and a 200 day moving average price of $210.37. 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 capitalization of $5.51 trillion, a price-to-earnings 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 current ratio of 4.59 and a quick ratio of 3.85.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued 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 firm had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The business's revenue for the quarter was up 105.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.05 EPS. Analysts expect that NVIDIA Corporation will post 9.25 EPS for the current fiscal year.

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

NVIDIA Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were paid a $0.25 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.4%. NVIDIA's dividend payout ratio (DPR) is 12.64%.

Key Stories Impacting 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.

Insider Activity at NVIDIA

In related news, EVP Timothy Teter sold 30,460 shares of NVIDIA stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the transaction, 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 34,918 shares of the company's stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction 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. 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 1,766,118 shares of company stock valued at $399,450,353 over the last ninety days. 3.94% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

NVDA has been the subject of several recent analyst reports. Royal Bank Of Canada increased their price objective on NVIDIA from $300.00 to $330.00 and gave the stock an "outperform" rating in a research note on Thursday, August 27th. UBS Group reissued a "buy" rating on shares of NVIDIA in a report on Friday. Truist Financial boosted their target price on shares of NVIDIA from $307.00 to $346.00 and gave the company a "buy" rating in a research note on Thursday, August 27th. Sanford C. Bernstein reaffirmed a "buy" rating on shares of NVIDIA in a report on Monday, September 21st. Finally, Rothschild & Co Redburn upped their target price on shares of NVIDIA from $300.00 to $325.00 in a report on Thursday, August 27th. Five analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and one has given a Hold rating to the company's stock. According to 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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