Parker Investment Management LLC Cuts Position in NVIDIA Corporation $NVDA

Key Points

• Parker Investment Management cut its NVIDIA stake by 9.5% in the first quarter, selling 24,477 shares and retaining 233,047 shares worth approximately $40.6 million. NVIDIA remains about 6.2% of the firm’s portfolio.
• NVIDIA reported strong quarterly results, with revenue rising 85.2% year over year to $81.61 billion and EPS exceeding analyst expectations. Analysts remain broadly bullish, with a consensus “Buy” rating and average price target of $304.26.
• Despite robust AI infrastructure demand, investors face risks from NVIDIA’s financing arrangements for customers, rising data-center costs, potential competition from custom AI chips, and pressure on the CUDA software advantage.

Parker Investment Management LLC decreased its stake in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 9.5% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 233,047 shares of the computer hardware maker's stock after selling 24,477 shares during the quarter. NVIDIA comprises approximately 6.2% of Parker Investment Management LLC's investment portfolio, making the stock its 6th largest holding. Parker Investment Management LLC's holdings in NVIDIA were worth $40,643,000 as of its most recent SEC filing.

Several other hedge funds also recently modified their holdings of the stock. Lifetime Wealth Management P.C. acquired a new stake in shares of NVIDIA in the 4th quarter valued at about $26,000. Longview Financial Advisors Inc. acquired a new position in NVIDIA during the 1st quarter worth approximately $27,000. Longfellow Investment Management Co. LLC raised its stake in NVIDIA by 47.9% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock worth $33,000 after buying an additional 67 shares during the period. Phillip James Consulting Co. bought a new position in NVIDIA in the first quarter worth approximately $40,000. Finally, Spurstone Advisory Services LLC bought a new position in NVIDIA in the second quarter worth approximately $40,000. Institutional investors own 65.27% of the company's stock.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Cloud providers are accelerating spending on AI infrastructure, particularly NVIDIA’s liquid-cooled Blackwell systems. This reinforced expectations that demand for NVIDIA’s data-center GPUs remains well ahead of supply ahead of the company’s next earnings report. Nvidia stock climbs as AI infrastructure demand boosts investor sentiment
• Positive Sentiment: Analyst and earnings-preview coverage remains bullish. NVIDIA has a strong history of beating estimates, while reported first-quarter revenue of $81.6 billion and data-center revenue of $75.2 billion showed exceptional year-over-year growth. Forecasts also point to continued momentum from the Blackwell and upcoming Vera Rubin platforms. Will Nvidia beat estimates again
• Positive Sentiment: A strong Nasdaq and semiconductor-sector rebound lifted sentiment across chip stocks, providing an additional market-wide catalyst for NVDA. Some analysts argue that NVIDIA’s valuation remains reasonable relative to its growth and potential future sales. Nvidia beats stock market upswing
• Neutral Sentiment: NVIDIA is using financial guarantees, equity investments, and revenue-sharing arrangements to help customers build AI data centers and secure demand for Vera Rubin. The strategy could strengthen its ecosystem and market share, but it also increases exposure to customer defaults, cash outflows, and weaker AI-investment returns. Nvidia financial engineering and Vera Rubin
• Negative Sentiment: Risk-focused coverage highlights concerns about circular financing, rising AI infrastructure costs, and whether hyperscaler spending can remain economically justified. NVIDIA has also traded sideways for several months, suggesting investors may require stronger earnings or guidance to sustain a breakout. Nvidia stock remains in a $200 rut
• Negative Sentiment: Longer-term competitive risks are emerging as custom AI chips gain traction and AI-generated software could weaken CUDA’s traditional competitive moat, particularly as workloads shift from training toward inference. AI threats to Nvidia CUDA

NVIDIA Stock Up 2.9%

NVDA opened at $206.64 on Tuesday. NVIDIA Corporation has a fifty-two week low of $164.07 and a fifty-two week high of $236.54. The firm has a market capitalization of $5.00 trillion, a P/E ratio of 31.64, a PEG ratio of 0.39 and a beta of 2.23. The company's 50-day moving average is $205.24 and its 200 day moving average is $196.34. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85.

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

NVIDIA Increases Dividend

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

NVIDIA declared that its Board of Directors has authorized a share buyback program on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to purchase up to 1.5% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board believes its shares are undervalued.

Analyst Ratings Changes

NVDA has been the subject of several recent research reports. The Goldman Sachs Group restated a "buy" rating and set a $285.00 price objective (up from $250.00) on shares of NVIDIA in a report on Wednesday, May 20th. Truist Financial lifted their price target on shares of NVIDIA from $287.00 to $307.00 and gave the company a "buy" rating in a research report on Thursday, May 21st. Wells Fargo & Company restated an "overweight" rating and set a $315.00 price objective (up from $265.00) on shares of NVIDIA in a report on Tuesday, May 12th. BNP Paribas Exane lifted their price objective on shares of NVIDIA from $270.00 to $285.00 and gave the company an "outperform" rating in a report on Thursday, May 21st. Finally, Seaport Research Partners boosted their target price on shares of NVIDIA from $140.00 to $180.00 and gave the stock a "sell" rating in a research 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 two have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Buy" and an average target price of $304.26.

Insider Activity

In related news, Director Stephen C. Neal sold 15,500 shares of the 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 sale, the director directly 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 sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director John Dabiri sold 625 shares of NVIDIA stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total value of $133,750.00. Following the sale, the director owned 14,163 shares in the company, valued at $3,030,882. This trade 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 over the last three months. Corporate insiders own 3.94% of the company's stock.

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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