October Effect Ltd Has $7.36 Million Stock Holdings in NVIDIA Corporation $NVDA

Key Points

• October Effect Ltd cut its NVIDIA stake by 34% in the second quarter, selling 18,945 shares and retaining 36,761 shares worth approximately $7.36 million. NVIDIA remains the fund’s third-largest holding, representing 6.9% of its portfolio.
• Institutional investors own 65.27% of NVIDIA, while insiders have recently sold 2.59 million shares worth about $571 million. Notable sales included transactions by executive Timothy Teter and director Mark Stevens.
• NVIDIA reported exceptionally strong quarterly results, with revenue up 105.9% year over year to $96.22 billion and EPS of $2.22, beating estimates. Analysts maintain a consensus “Buy” rating with an average price target of $324.34, although valuation, competition and regulatory concerns remain risks.

October Effect Ltd reduced its holdings in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 34.0% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 36,761 shares of the computer hardware maker's stock after selling 18,945 shares during the period. NVIDIA accounts for about 6.9% of October Effect Ltd's portfolio, making the stock its 3rd largest holding. October Effect Ltd's holdings in NVIDIA were worth $7,356,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Brighton Jones LLC raised its holdings in NVIDIA by 12.4% during the fourth quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker's stock worth $43,631,000 after acquiring an additional 35,815 shares in the last quarter. Bank Pictet & Cie Europe AG boosted its position in NVIDIA by 1.0% during the fourth quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker's stock valued at $315,100,000 after purchasing an additional 22,929 shares during the last quarter. Highview Capital Management LLC DE grew its stake in NVIDIA by 6.7% in the fourth quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker's stock valued at $7,842,000 after purchasing an additional 3,653 shares in the last quarter. Hudson Value Partners LLC grew its stake in NVIDIA by 30.7% in the fourth quarter. Hudson Value Partners LLC now owns 50,658 shares of the computer hardware maker's stock valued at $6,805,000 after purchasing an additional 11,900 shares in the last quarter. Finally, Wealth Group Ltd. increased its position in shares of NVIDIA by 15.7% during the 1st quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker's stock worth $715,000 after purchasing an additional 896 shares during the last quarter. 65.27% of the stock is owned by institutional investors.

Insider Activity

In related news, EVP Timothy S. Teter sold 30,000 shares of NVIDIA stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the completion of the sale, the executive vice president owned 2,687,660 shares of the company's stock, valued at approximately $585,587,360.80. The trade was a 1.10% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of the company's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the completion of the transaction, the director owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 2,585,740 shares of company stock worth $571,015,527 over the last three months. Insiders own 3.94% of the company's stock.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s AI growth outlook remains exceptionally strong. CEO Jensen Huang said revenue could grow roughly 70% next year, while the company’s next-generation Rubin platform is already shipping. Recent quarterly revenue reached $96.2 billion, up about 106% year over year, exceeding estimates and reinforcing expectations for continued data-center demand. Nvidia Has $96 Billion in Quarterly Revenue
• Positive Sentiment: Microsoft reportedly plans to more than triple its data-center capacity, a potentially significant demand catalyst for NVIDIA’s GPUs, networking products and full-stack systems. Strong August revenue growth at manufacturing partner TSMC also signals that AI-chip orders remain robust. Microsoft Data Center Expansion
• Positive Sentiment: NVIDIA is expanding its ecosystem through a planned Australian AI-infrastructure buildout of up to 2 gigawatts by 2027, partnerships with Palantir for sovereign supply-chain AI, and adoption of its chip-linking technology by d-Matrix. These initiatives broaden demand beyond traditional hyperscalers. Australian AI Infrastructure Expansion
• Neutral Sentiment: Competition and valuation remain investor concerns. Positron AI raised $875 million to develop memory-based inference technology that could challenge NVIDIA’s software and hardware advantage, while AMD and Broadcom are being promoted as alternative AI investments. High Treasury yields also make NVIDIA’s elevated valuation more difficult to justify.
• Negative Sentiment: The Justice Department is reportedly investigating whether NVIDIA’s licensing arrangement with AI-chip startup Groq was structured to avoid antitrust scrutiny. Any regulatory action could limit strategic flexibility or increase legal uncertainty. DOJ Groq Licensing Investigation
• Negative Sentiment: Insider selling is weighing on sentiment: director Mark Stevens reportedly sold hundreds of thousands of shares, and broader recent filings show substantial insider sales with no reported purchases. The transactions do not prove weakening fundamentals, but they can encourage profit-taking after the stock’s strong rally.
• Negative Sentiment: Higher oil prices, rising bond yields and a hotter inflation reading have pressured technology stocks broadly. These macro forces, combined with concerns about AI-capital-spending sustainability and fresh regulatory scrutiny, help explain why NVIDIA has decreased despite strong company-specific news.

NVIDIA Stock Performance

Shares of NASDAQ NVDA opened at $218.36 on Friday. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. The company has a market capitalization of $5.26 trillion, a P/E ratio of 27.61, a P/E/G ratio of 1.75 and a beta of 2.22. NVIDIA Corporation has a 12 month low of $164.27 and a 12 month high of $236.54. The stock has a 50 day moving average of $212.82 and a 200-day moving average of $203.23.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating analysts' consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The business had revenue of $96.22 billion for the quarter, compared to analysts' expectations of $92.27 billion. During the same quarter in the prior year, the business earned $1.05 EPS. The firm's revenue for the quarter was up 105.9% on a year-over-year basis. As a group, equities research analysts predict that NVIDIA Corporation will post 9.1 EPS for the current year.

NVIDIA announced that its Board of Directors has initiated a share repurchase program on Wednesday, May 20th that permits the company to buyback $80.00 billion in shares. This buyback authorization permits the computer hardware maker to buy up to 1.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its stock is undervalued.

NVIDIA Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Thursday, September 10th. NVIDIA's payout ratio is currently 12.64%.

Analysts Set New Price Targets

NVDA has been the topic of a number of analyst reports. UBS Group set a $300.00 price objective on NVIDIA and gave the stock a "buy" rating in a research note on Thursday, August 27th. Mizuho set a $315.00 target price on shares of NVIDIA and gave the company an "outperform" rating in a research note on Thursday, August 27th. Barclays restated an "overweight" rating on shares of NVIDIA in a report on Thursday, May 21st. Robert W. Baird set a $500.00 price target on shares of NVIDIA and gave the stock an "outperform" rating in a research report on Thursday, May 21st. Finally, Citigroup reiterated a "buy" rating and issued a $315.00 price target (up from $300.00) on shares of NVIDIA in a research note on Thursday, August 27th. Two research analysts have rated the stock with a Strong Buy rating, fifty-one have issued a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus price target of $324.34.

NVIDIA Profile

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company's offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.

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