Palouse Capital Management Inc. Raises Stock Position in NVIDIA Corporation $NVDA

Key Points

• Palouse Capital Management increased its NVIDIA position by 975.4% in the first quarter, ending with 8,646 shares valued at about $1.51 million.
• NVIDIA reported strong quarterly results, with EPS of $1.87 beating estimates and revenue of $81.61 billion, up 85.2% year over year.
• The company also authorized an $80 billion share buyback and raised its quarterly dividend to $0.25 per share, while analysts largely remain bullish on the stock.

Palouse Capital Management Inc. boosted its position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 975.4% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 8,646 shares of the computer hardware maker's stock after acquiring an additional 7,842 shares during the period. Palouse Capital Management Inc.'s holdings in NVIDIA were worth $1,508,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also bought and sold shares of NVDA. State Street Corp raised its position in shares of NVIDIA by 1.2% in the 4th quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker's stock valued at $184,911,111,000 after purchasing an additional 11,451,386 shares during the last quarter. Geode Capital Management LLC grew its position in NVIDIA by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker's stock worth $109,446,217,000 after purchasing an additional 3,383,441 shares during the last quarter. Norges Bank purchased a new stake in NVIDIA during the 4th quarter worth approximately $62,244,133,000. Bank of America Corp DE increased its stake in NVIDIA by 1.5% during the 4th quarter. Bank of America Corp DE now owns 187,181,484 shares of the computer hardware maker's stock valued at $34,909,347,000 after purchasing an additional 2,849,678 shares in the last quarter. Finally, Legal & General Group Plc raised its holdings in shares of NVIDIA by 1.5% in the third quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker's stock worth $33,808,862,000 after buying an additional 2,609,560 shares during the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

NVIDIA Stock Down 0.7%

NVIDIA stock opened at $202.78 on Friday. The firm has a market cap of $4.91 trillion, a price-to-earnings ratio of 31.05, a price-to-earnings-growth ratio of 0.45 and a beta of 2.21. NVIDIA Corporation has a 52 week low of $161.61 and a 52 week high of $236.54. The business's 50-day moving average price is $209.45 and its 200 day moving average price is $194.30. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04.

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

NVIDIA announced that its Board of Directors has approved a stock repurchase plan on Wednesday, May 20th that allows the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's management believes its shares are undervalued.

NVIDIA Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were paid a $0.25 dividend. The ex-dividend date was Thursday, June 4th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. This is an increase from NVIDIA's previous quarterly dividend of $0.01. NVIDIA's dividend payout ratio (DPR) is presently 15.31%.

Insider Buying and Selling

In related news, Director John Dabiri sold 625 shares of the firm's stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the sale, the director owned 14,163 shares in the company, valued at approximately $3,030,882. This trade represents a 4.23% decrease in their ownership of the stock. The transaction 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, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction on 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 directly owned 5,207,271 shares of the company's stock, valued at $1,094,412,146.07. The trade was a 14.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 1,901,125 shares of company stock valued at $410,583,015. Corporate insiders own 3.94% of the company's stock.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Bank of America and other analysts reiterated bullish views, saying NVIDIA still dominates AI infrastructure spending and that the current valuation looks attractive after the recent selloff. Nvidia backed by Bank of America as analysts see AI leadership supporting further growth
• Positive Sentiment: Research from SemiAnalysis suggested NVIDIA could beat Wall Street expectations on data center revenue, reinforcing the view that AI demand remains stronger than many investors fear. Wall Street’s Most Watched Researcher Just Predicted NVIDIA Will Crush Earnings. Will the Stock Rally?
• Positive Sentiment: NVIDIA announced or was highlighted in several AI product and ecosystem updates, including Hugging Face LeRobot integration and new NIM microservices, which help support its long-term platform story. NVIDIA (NVDA) Integrates Isaac AI Tools into Hugging Face LeRobot
• Neutral Sentiment: Reports that China may allow limited purchases of NVIDIA H200 chips could modestly improve sentiment, but supply appears tightly capped, limiting the near-term impact. China plans to let top AI firms buy limited amount of Nvidia H200 chips, the Information reports
• Neutral Sentiment: Several articles argued NVIDIA is trading at a lower valuation than usual, which may attract value buyers, but the same decline also reflects investor concerns about competition, margins, and delays in next-gen infrastructure. Nvidia's stock trades at a juicy discount, according to BofA
• Negative Sentiment: Some coverage pointed to slower momentum in the stock versus other AI and semiconductor names, plus concerns about rising competition and a broader rotation away from NVIDIA into other parts of the AI supply chain. Nvidia stock continues to struggle even as AI peers soar: buy, sell, or hold?
• Negative Sentiment: Reuters also reported that France’s competition probe into NVIDIA is nearing an end, keeping regulatory overhang in focus. French competition authority's Nvidia probe nearing end

Analyst Ratings Changes

Several equities research analysts have recently commented on the stock. Mizuho set a $300.00 price objective on shares of NVIDIA in a research note on Thursday, May 21st. Susquehanna restated a "positive" rating and issued a $275.00 target price (up from $250.00) on shares of NVIDIA in a research note on Tuesday, May 12th. Bank of America reaffirmed a "buy" rating and set a $350.00 price target (up from $320.00) on shares of NVIDIA in a research report on Thursday, May 21st. DA Davidson reissued a "buy" rating and issued a $300.00 price objective on shares of NVIDIA in a report on Monday, June 1st. Finally, Benchmark restated a "buy" rating and issued a $335.00 price objective (up from $250.00) on shares of NVIDIA in a research note on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Buy" and a consensus price target of $303.84.

About NVIDIA

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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