Paragon Capital Management Inc. Grows Stock Holdings in NVIDIA Corporation $NVDA

Key Points

• Paragon Capital Management increased its NVIDIA stake by 288.8% in the first quarter, ending with 13,573 shares valued at about $2.37 million. NVIDIA is now the fund’s 9th-largest holding.
• NVIDIA’s business momentum remains strong, with its latest earnings beating expectations on both EPS and revenue and revenue rising 85.2% year over year. The company also authorized an $80 billion share buyback and boosted its quarterly dividend to $0.25 per share.
• Despite bullish analyst sentiment and a Buy consensus price target of about $303.84, the stock faces headwinds from a broader AI/semiconductor selloff and growing concerns about rising competition from custom chips and alternative AI hardware.

Paragon Capital Management Inc. boosted its position in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 288.8% in the first quarter, according to its most recent filing with the SEC. The institutional investor owned 13,573 shares of the computer hardware maker's stock after purchasing an additional 10,082 shares during the period. NVIDIA comprises 2.0% of Paragon Capital Management Inc.'s investment portfolio, making the stock its 9th biggest position. Paragon Capital Management Inc.'s holdings in NVIDIA were worth $2,367,000 at the end of the most recent reporting period.

Several other hedge funds have also recently modified their holdings of NVDA. State Street Corp lifted its holdings in NVIDIA by 1.2% during the fourth quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker's stock worth $184,911,111,000 after acquiring an additional 11,451,386 shares during the period. Geode Capital Management LLC raised its stake in shares of 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 period. Norges Bank bought a new stake in shares of NVIDIA during the 4th quarter worth $62,244,133,000. Bank of America Corp DE boosted its holdings in shares of NVIDIA by 1.5% in the 4th quarter. Bank of America Corp DE now owns 187,181,484 shares of the computer hardware maker's stock worth $34,909,347,000 after buying an additional 2,849,678 shares during the last quarter. Finally, Legal & General Group Plc increased its holdings in NVIDIA by 1.5% during 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. Institutional investors own 65.27% of the company's stock.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Several analysts and commentators still argue that NVIDIA’s growth story remains intact, citing strong demand for Blackwell chips, continuing hyperscaler spending, and the company’s entrenched CUDA software moat. Why Cerebras’ Mind-Boggling LLM Raw Speed Is Still Falling Into Nvidia’s Massive Software Trap
• Positive Sentiment: NVIDIA also benefited from coverage pointing to expanding AI infrastructure demand and new use cases, including AWS partnerships and data-center networking growth, which reinforce the company’s long-term AI leadership. NVIDIA (NVDA), AWS (AMZN) Partner to Boost Production-Scale AI with Blackwell-Powered Instances
• Neutral Sentiment: Optimistic pieces also highlighted NVIDIA’s valuation and long-term upside, arguing the stock may still have room to run if AI spending stays strong. How Much Upside Can NVDA Stock's Growth Deliver?
• Negative Sentiment: The main drag is a broad AI and semiconductor pullback, with reports saying the Nasdaq sold off sharply and NVIDIA fell alongside Micron and SanDisk as investors backed away from crowded tech trades. Stock Market Today: Small Caps Edge Lower As Dow Goes Flat; Heavy Construction Play Surges (Live Coverage)
• Negative Sentiment: There is also growing concern that competition is intensifying, with rivals and customers exploring custom chips and alternative AI hardware, which could pressure NVIDIA’s pricing power over time. Why everyone from OpenAI to SpaceX is building their own chips (and turning up the heat on Nvidia)

Analysts Set New Price Targets

NVDA has been the topic of a number of research analyst reports. Cantor Fitzgerald reiterated an "overweight" rating and issued a $350.00 target price on shares of NVIDIA in a research note on Thursday, May 21st. Citic Securities increased their price objective on NVIDIA from $242.00 to $315.00 and gave the company a "buy" rating in a report on Friday, May 22nd. Weiss Ratings restated a "buy (b)" rating on shares of NVIDIA in a research note on Friday, April 10th. China Renaissance assumed coverage on NVIDIA in a research report on Friday, June 5th. They set a "buy" rating and a $319.00 price target on the stock. Finally, President Capital lifted their price objective on NVIDIA from $280.00 to $295.00 and gave the stock a "buy" rating in a report on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus target price of $303.84.

Insider Buying and Selling at NVIDIA

In related news, Director Stephen C. Neal sold 15,500 shares of NVIDIA stock in a transaction 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 sale, the director owned 116,135 shares of the company's stock, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director John Dabiri sold 625 shares of the company's stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total value of $133,750.00. Following the completion of the transaction, the director owned 14,163 shares in the company, valued at $3,030,882. This represents a 4.23% decrease in their ownership of the stock. 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 a total of 1,901,125 shares of company stock valued at $410,583,015 in the last three months. Company insiders own 3.94% of the company's stock.

NVIDIA Stock Performance

NASDAQ:NVDA opened at $192.53 on Friday. The business's fifty day moving average is $210.66 and its 200 day moving average is $193.00. The firm has a market cap of $4.66 trillion, a price-to-earnings ratio of 29.48, a PEG ratio of 0.44 and a beta of 2.22. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. NVIDIA Corporation has a 52-week low of $151.49 and a 52-week high of $236.54.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping the consensus estimate of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The business had revenue of $81.61 billion during the quarter, compared to the consensus estimate of $78.42 billion. During the same quarter last year, the company earned $0.81 EPS. The firm's revenue was up 85.2% compared to the same quarter last year. Research analysts predict that NVIDIA Corporation will post 8.69 EPS for the current year.

NVIDIA declared that its board has approved a share buyback program on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to buy up to 1.5% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's board of directors believes its shares are undervalued.

NVIDIA Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 26th. Shareholders 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 yield of 0.5%. This is a boost from NVIDIA's previous quarterly dividend of $0.01. NVIDIA's dividend payout ratio is currently 15.31%.

NVIDIA Company 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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