Purpose Unlimited Inc. Acquires Shares of 1,035,107 NVIDIA Corporation $NVDA

Key Points

• Purpose Unlimited Inc. disclosed a new fourth-quarter stake in NVIDIA, buying 1,035,107 shares valued at about $193 million. NVIDIA is now the fund’s second-largest holding, making up roughly 8.8% of its portfolio.
• NVIDIA reported strong quarterly results, with earnings of $1.87 per share and revenue of $81.61 billion, both topping expectations. Revenue jumped 85.2% from a year earlier, reinforcing continued AI-driven growth.
• The company also authorized an $80 billion share buyback and raised its quarterly dividend to $0.25 per share from $0.01. At the same time, some insider selling and a mix of analyst ratings suggest cautious near-term sentiment despite the strong fundamentals.

Purpose Unlimited Inc. bought a new stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 1,035,107 shares of the computer hardware maker's stock, valued at approximately $193,047,000. NVIDIA makes up approximately 8.8% of Purpose Unlimited Inc.'s investment portfolio, making the stock its 2nd largest holding.

Other large investors have also made changes to their positions in the company. Norges Bank bought a new position in shares of NVIDIA in the fourth quarter valued at approximately $62,244,133,000. J. Stern & Co. LLP grew its position in NVIDIA by 13,709.1% during the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker's stock worth $23,454,297,000 after acquiring an additional 124,849,603 shares during the last quarter. Cardano Risk Management B.V. increased its holdings in NVIDIA by 896.4% during the 4th quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker's stock valued at $14,570,119,000 after purchasing an additional 70,283,539 shares in the last quarter. Capital Research Global Investors raised its position in NVIDIA by 16.1% in the 3rd quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker's stock valued at $30,855,564,000 after purchasing an additional 22,896,705 shares during the last quarter. Finally, Laurel Wealth Advisors LLC boosted its stake in NVIDIA by 15,496.1% in the second quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker's stock worth $3,454,534,000 after purchasing an additional 21,725,326 shares in the last quarter. Institutional investors own 65.27% of the company's stock.

NVIDIA Price Performance

Shares of NVDA stock opened at $200.00 on Wednesday. The firm has a market cap of $4.84 trillion, a price-to-earnings ratio of 30.63, a PEG ratio of 0.47 and a beta of 2.22. NVIDIA Corporation has a 12 month low of $145.50 and a 12 month high of $236.54. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. The stock has a 50-day moving average price of $210.62 and a 200 day moving average price of $192.80.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its 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. The company had revenue of $81.61 billion for 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 company's revenue was up 85.2% compared to the same quarter last year. During the same period in the prior year, the company posted $0.81 EPS. Research analysts expect that NVIDIA Corporation will post 8.65 EPS for the current year.

NVIDIA declared that its board has authorized a stock repurchase plan 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 buy up to 1.5% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's management believes its stock is undervalued.

NVIDIA Increases Dividend

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

Insider Buying and Selling at NVIDIA

In other NVIDIA news, 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 sale, the director owned 5,207,271 shares of the company's stock, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Stephen C. Neal sold 15,500 shares of the company's stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the sale, the director owned 116,135 shares of the company's stock, valued at $25,053,803.55. The trade was a 11.77% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 1,901,125 shares of company stock valued at $410,583,015. 3.94% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several analysts have recently commented on the company. Zacks Research cut NVIDIA from a "strong-buy" rating to a "hold" rating in a report on Thursday, May 21st. Tigress Financial reiterated a "strong-buy" rating and set a $425.00 price target (up from $360.00) on shares of NVIDIA in a research report on Wednesday, May 27th. DA Davidson reissued a "buy" rating and set a $300.00 price objective on shares of NVIDIA in a report on Monday, June 1st. Wall Street Zen upgraded shares of NVIDIA from a "buy" rating to a "strong-buy" rating in a research report on Saturday, May 23rd. Finally, Itau BBA Securities reiterated a "market perform" rating on shares of NVIDIA in a research report on Thursday, February 26th. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, NVIDIA has an average rating of "Buy" and a consensus price target of $305.67.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA continues to secure new AI-related partnerships and product momentum, including the launch of its BioNeMo Agent Toolkit for life sciences and additional collaborations around digital twins, robotics, and energy infrastructure. Nvidia launches BioNeMo agent toolkit for AI-driven life sciences research
• Positive Sentiment: Analysts and several articles continue to frame NVIDIA as a long-term winner from AI infrastructure buildout, with some bullish commentary pointing to strong earnings growth, major data-center demand, and attractive valuation relative to its growth. Nvidia: The $1 Trillion Trade Hiding In Plain Sight
• Neutral Sentiment: The company’s latest earnings remain a positive backdrop: NVIDIA beat expectations on both EPS and revenue, with revenue up sharply year over year, reinforcing that fundamentals are still strong despite the stock’s weakness.
• Negative Sentiment: AI spending concerns are weighing on the whole chip complex, with reports that SK Hynix is slowing HBM expansion and traders worrying about the sustainability of debt-funded AI capex. That has hit NVIDIA alongside peers like AMD, Intel, Micron, and SanDisk. Lam Research, Qualcomm, and Western Digital Stocks Trade Down, What You Need To Know
• Negative Sentiment: There is also some company-specific headline risk from a Reuters report that NVIDIA was sued by music company Jamendo over AI training, adding to near-term uncertainty. Nvidia sued by music company Jamendo over AI training

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.