Sanders Morris Harris LLC Decreases Stake in NVIDIA Corporation $NVDA

Key Points

• Sanders Morris Harris sharply reduced its NVIDIA stake by 85.3% in the second quarter, selling 154,199 shares and retaining 26,583 shares valued at approximately $5.3 million.
• Analyst sentiment remains strongly positive: NVIDIA has a consensus “Buy” rating and an average price target of $305.94, supported by several upgrades and bullish earnings expectations.
• NVIDIA reported quarterly revenue and EPS above forecasts, increased its dividend to $0.25 per share, and authorized an $80 billion share-buyback program; however, insiders sold roughly $410.6 million of stock over the past 90 days.

Sanders Morris Harris LLC cut its holdings in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 85.3% in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 26,583 shares of the computer hardware maker's stock after selling 154,199 shares during the quarter. NVIDIA makes up 3.1% of Sanders Morris Harris LLC's portfolio, making the stock its 9th largest position. Sanders Morris Harris LLC's holdings in NVIDIA were worth $5,319,000 as of its most recent SEC filing.

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

Analyst Ratings Changes

Several equities analysts recently issued reports on NVDA shares. Zacks Research upgraded NVIDIA from a "hold" rating to a "strong-buy" rating in a report on Monday, July 20th. Bank of America reissued a "buy" rating and set a $350.00 price objective (up from $320.00) on shares of NVIDIA in a report on Thursday, May 21st. William Blair restated an "outperform" rating on shares of NVIDIA in a research report on Tuesday, June 2nd. DA Davidson reaffirmed a "buy" rating and issued a $300.00 target price on shares of NVIDIA in a research note on Monday, June 1st. Finally, Melius Research set a $400.00 price target on shares of NVIDIA in a research report on Thursday, May 21st. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average price target of $305.94.

Insider Buying and Selling

In related news, Director John Dabiri sold 625 shares of the business's stock in a transaction that occurred 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 completion of the transaction, the director owned 14,163 shares in the company, valued at approximately $3,030,882. The trade was a 4.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of the company's stock in a transaction that occurred 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 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. Insiders have sold 1,901,125 shares of company stock valued at $410,583,015 in the last 90 days. 3.94% of the stock is owned by insiders.

NVIDIA Trading Down 0.1%

NASDAQ NVDA opened at $225.16 on Friday. NVIDIA Corporation has a 12 month low of $164.07 and a 12 month high of $236.54. The stock has a 50-day simple moving average of $206.14 and a 200 day simple moving average of $198.51. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $5.45 trillion, a PE ratio of 34.48, a P/E/G ratio of 0.44 and a beta of 2.23.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its earnings results 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 firm had revenue of $81.61 billion for the quarter, compared to analysts' expectations of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company's revenue was up 85.2% compared to the same quarter last year. During the same quarter last year, the business earned $0.81 earnings per share. Research analysts forecast that NVIDIA Corporation will post 8.79 EPS for the current year.

NVIDIA Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend was Thursday, June 4th. This is a positive change from NVIDIA's previous quarterly dividend of $0.01. NVIDIA's payout ratio is 15.31%.

NVIDIA announced that its Board of Directors has approved a stock buyback program on Wednesday, May 20th that allows the company to buyback $80.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to buy up to 1.5% of its shares through open market purchases. Shares buyback programs are often a sign that the company's management believes its stock is undervalued.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: UBS expects another major earnings beat. The firm reiterated a Buy rating and $280 price target, forecasting that NVIDIA could exceed its fiscal second-quarter revenue outlook of $91 billion by several billion dollars as GB300 demand ramps ahead of the Vera Rubin platform. UBS earnings outlook
• Positive Sentiment: A proposed $500 billion financing initiative could expand customers’ purchasing capacity. Apollo, BlackRock, Brookfield, Goldman Sachs and other financial firms are discussing capital pools and securitized loans for AI data centers. The structure could support continued GPU deployments and create a secondary market for older NVIDIA systems. NVIDIA GPU financing deal
• Positive Sentiment: Demand catalysts continue to broaden. NVIDIA is promoting open-source AI tools, expanding into robotics and physical AI, partnering with former rival Groq, and deepening its networking and infrastructure business. A $2 billion investment in Marvell also highlights efforts to strengthen the broader AI supply chain. NVIDIA open-source AI strategy
• Neutral Sentiment: Market volatility appears driven more by liquidity than fundamentals. Asian market circuit breakers and currency-related selling pressured semiconductor shares, but the underlying hyperscaler data-center buildout and long-term AI infrastructure commitments remain intact. Asian market volatility and AI demand
• Negative Sentiment: Expectations and valuation leave little room for disappointment. Analysts note that NVIDIA’s strong pre-earnings performance has set a high bar, while critics—including Michael Burry—warn that AI financing may become circular if customers rely heavily on borrowed capital. Concerns also include power, labor and chip-supply bottlenecks, as well as the risk that Chinese developers optimize models for Huawei hardware instead of U.S. GPUs. AI infrastructure bottlenecks

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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