Pacer Advisors Inc. Reduces Position in NVIDIA Corporation $NVDA

Key Points

• Pacer Advisors cut its NVIDIA stake by 36.6% in the first quarter, selling 1.09 million shares and retaining 1.88 million shares valued at approximately $328.7 million. Hedge funds and other institutions still own 65.27% of the stock.
• NVIDIA insiders sold approximately $410.6 million worth of shares over the past 90 days, while directors Stephen C. Neal and John Dabiri disclosed recent sales.
• Despite selling activity, analysts remain broadly bullish, with a consensus “Buy” rating and $305.94 price target. Investors will focus on late-August earnings and whether AI demand, GB300 adoption, and NVIDIA’s financing strategy support continued growth amid concerns about GPU depreciation and financing risk.

Pacer Advisors Inc. decreased its position in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 36.6% during the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 1,884,647 shares of the computer hardware maker's stock after selling 1,088,587 shares during the period. Pacer Advisors Inc.'s holdings in NVIDIA were worth $328,682,000 as of its most recent SEC filing.

Other hedge funds also recently made changes to their positions in the company. Spectrum Financial Alliance Ltd LLC raised its stake in shares of NVIDIA by 3.8% during the first quarter. Spectrum Financial Alliance Ltd LLC now owns 1,395 shares of the computer hardware maker's stock valued at $243,000 after acquiring an additional 51 shares during the last quarter. LMG Wealth Partners LLC grew its stake in shares of NVIDIA by 0.7% in the fourth quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker's stock worth $1,427,000 after purchasing an additional 53 shares during the last quarter. Vision Financial Markets LLC increased its holdings in NVIDIA by 1.2% during the 3rd quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker's stock valued at $866,000 after purchasing an additional 53 shares during the period. JGP Global Gestao de Recursos Ltda. increased its holdings in NVIDIA by 2.3% during the 4th quarter. JGP Global Gestao de Recursos Ltda. now owns 2,402 shares of the computer hardware maker's stock valued at $448,000 after purchasing an additional 55 shares during the period. Finally, Penobscot Wealth Management raised its position in NVIDIA by 0.7% during the 1st quarter. Penobscot Wealth Management now owns 7,930 shares of the computer hardware maker's stock valued at $1,383,000 after purchasing an additional 55 shares during the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, Director Stephen C. Neal sold 15,500 shares of the firm's stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the transaction, the director owned 116,135 shares of the company's stock, valued at $25,053,803.55. This trade represents a 11.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director John Dabiri sold 625 shares of NVIDIA stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the transaction, the director owned 14,163 shares of the company's stock, valued at $3,030,882. The trade was a 4.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,901,125 shares of company stock worth $410,583,015 in the last 90 days. Insiders own 3.94% of the company's stock.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: $500 billion financing push reduces funding constraints: Bank of America said the initiative could ease financing risk by shifting much of the capital burden to Wall Street. The plan may make it easier for cloud providers and other customers to purchase NVIDIA hardware, networking products, and software, potentially extending the company’s revenue runway. BofA Says Nvidia’s $500 Billion Plan Eases Financing Risk
• Positive Sentiment: Continued demand for current and older GPUs: Susquehanna expects a continued GB300 ramp ahead of NVIDIA’s Vera Rubin platform release. Separately, CoreWeave’s CEO said the company is booking NVIDIA A100 systems through 2029 at full pricing, challenging concerns that older GPUs will rapidly lose value. Nvidia likely to see continued GB300 ramp ahead of Vera Rubin release
• Positive Sentiment: Analysts remain bullish: Recent coverage includes rating upgrades and price-target increases, with Wells Fargo maintaining an overweight rating and a $315 target. The positive views reflect expectations for sustained AI infrastructure spending and NVIDIA’s end-to-end hardware, networking, and software advantage. SA analyst upgrades and downgrades
• Positive Sentiment: Broader AI ecosystem momentum: IBM and Together AI agreed to a $240 million multiyear contract for an NVIDIA-powered inference cluster, while NVIDIA’s open-weight model efforts could strengthen its software ecosystem and CUDA platform. IBM and Together AI ink $240 million deal
• Negative Sentiment: Financing risks remain a key overhang: Critics question whether the arrangement amounts to circular financing because NVIDIA may provide residual-value support of up to 25% on some deals. Rapid GPU depreciation, potential oversupply, and lower-cost Chinese compute could weaken collateral values and expose NVIDIA to losses if customers struggle.
• Neutral Sentiment: Near-term test: Investors are likely to look to NVIDIA’s late-August earnings report for evidence that GB300 demand, expanding customer spending, and the financing strategy are translating into sustainable revenue and earnings growth.

Wall Street Analysts Forecast Growth

NVDA has been the subject of several research analyst reports. Tigress Financial reiterated a "strong-buy" rating and issued a $425.00 price objective (up from $360.00) on shares of NVIDIA in a report on Wednesday, May 27th. JPMorgan Chase & Co. boosted their target price on NVIDIA from $265.00 to $280.00 and gave the company an "overweight" rating in a research note on Thursday, May 21st. Stifel Nicolaus set a $282.00 price target on NVIDIA and gave the stock a "buy" rating in a research note on Thursday, May 21st. Wall Street Zen cut shares of NVIDIA from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 4th. Finally, Craig Hallum boosted their price objective on shares of NVIDIA from $245.00 to $275.00 and gave the company a "buy" rating in a research report on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, NVIDIA has a consensus rating of "Buy" and a consensus target price of $305.94.

NVIDIA Trading Up 3.0%

Shares of NASDAQ NVDA opened at $224.09 on Thursday. NVIDIA Corporation has a 1 year low of $164.07 and a 1 year high of $236.54. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The firm has a 50-day moving average of $205.61 and a 200 day moving average of $198.06. The stock has a market cap of $5.42 trillion, a P/E ratio of 34.32, a price-to-earnings-growth ratio of 0.42 and a beta of 2.23.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, topping analysts' consensus estimates of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business had revenue of $81.61 billion for the quarter, compared to analysts' expectations of $78.42 billion. During the same quarter in the prior year, the company earned $0.81 earnings per share. The business's revenue was up 85.2% compared to the same quarter last year. As a group, sell-side analysts expect that NVIDIA Corporation will post 8.79 EPS for the current fiscal year.

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

NVIDIA Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 0.4%. The ex-dividend date was Thursday, June 4th. This is an increase from NVIDIA's previous quarterly dividend of $0.01. NVIDIA's dividend payout ratio (DPR) is currently 15.31%.

NVIDIA Profile

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company's product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.

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