Stockbridge Partners LLC Sells 236,892 Shares of NVIDIA Corporation $NVDA

Key Points

• Stockbridge Partners reduced its NVIDIA stake by 15.5%, selling 236,892 shares in the second quarter and retaining 1.30 million shares worth approximately $259.2 million. NVIDIA still represents about 5.5% of the firm’s portfolio.
• Institutional ownership remains substantial at 65.27%, while several other hedge funds increased their positions during the quarter. Analysts maintain a consensus “Buy” rating with an average price target of $321.89.
• NVIDIA reported strong quarterly results, with revenue up 105.9% year over year and earnings exceeding expectations, and authorized a $150 billion share-repurchase plan. However, insiders sold roughly $399.5 million of stock over the past three months.

Stockbridge Partners LLC decreased its holdings in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 15.5% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,295,226 shares of the computer hardware maker's stock after selling 236,892 shares during the period. NVIDIA comprises about 5.5% of Stockbridge Partners LLC's investment portfolio, making the stock its 8th biggest holding. Stockbridge Partners LLC's holdings in NVIDIA were worth $259,162,000 at the end of the most recent quarter.

Several other hedge funds have also recently modified their holdings of the business. Park Place Capital Corp lifted its holdings in shares of NVIDIA by 2.5% during the second quarter. Park Place Capital Corp now owns 79,997 shares of the computer hardware maker's stock valued at $16,007,000 after purchasing an additional 1,940 shares in the last quarter. Peak Asset Management LLC increased its holdings in NVIDIA by 6.7% in the 2nd quarter. Peak Asset Management LLC now owns 9,067 shares of the computer hardware maker's stock worth $1,814,000 after buying an additional 570 shares in the last quarter. Fiduciary Financial Advisors raised its position in NVIDIA by 1,264.3% in the 2nd quarter. Fiduciary Financial Advisors now owns 52,908 shares of the computer hardware maker's stock worth $10,703,000 after buying an additional 49,030 shares during the last quarter. L2 Asset Management LLC raised its position in NVIDIA by 5.7% in the 2nd quarter. L2 Asset Management LLC now owns 134,011 shares of the computer hardware maker's stock worth $26,814,000 after buying an additional 7,225 shares during the last quarter. Finally, Wayfinding Financial LLC lifted its stake in NVIDIA by 0.4% during the 2nd quarter. Wayfinding Financial LLC now owns 71,844 shares of the computer hardware maker's stock valued at $14,375,000 after acquiring an additional 280 shares during the period. Hedge funds and other institutional investors own 65.27% of the company's stock.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: AI infrastructure demand remains robust. TSMC reported third-quarter revenue growth of 50%, while analysts cited continued hyperscaler spending and projected U.S. data-center capital expenditures of roughly $2 trillion next year—supportive of NVIDIA’s accelerator demand. NVIDIA AI spending outlook
• Positive Sentiment: SpaceX reportedly plans to raise as much as $40 billion to purchase NVIDIA AI chips, highlighting the scale of demand from emerging AI customers. NVIDIA also committed $1 billion over five years to U.S. scientific research in areas including quantum computing, healthcare and energy security. SpaceX NVIDIA chip purchase report
• Neutral Sentiment: Options activity is mixed: a large bullish trade suggests some investors expect further gains, but heavier put buying in the semiconductor ETF indicates increased hedging and caution across the chip sector. Technical analysts also see resistance near $235 and potential support around $215–$220. NVIDIA and semiconductor options activity
• Negative Sentiment: Investors remain concerned that AI spending may be debt-funded and approaching a peak. The withdrawal of NVIDIA-backed Firmus Grid’s proposed multibillion-dollar IPO, alongside reports that OpenAI’s annualized revenue was below earlier expectations, has raised questions about AI infrastructure valuations and customer funding. Firmus IPO withdrawal
• Negative Sentiment: Leadership and governance headlines add limited uncertainty: NVIDIA’s head of corporate communications left after roughly four months, while a legal challenge to the company’s Groq technology transaction could create additional execution and reputational risk. NVIDIA communications chief departure

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on NVDA. Piper Sandler assumed coverage on shares of NVIDIA in a report on Wednesday, September 9th. They set an "overweight" rating and a $300.00 price target on the stock. The Goldman Sachs Group reissued a "buy" rating on shares of NVIDIA in a report on Thursday, September 10th. China Renaissance increased their price objective on shares of NVIDIA from $319.00 to $330.00 and gave the company a "buy" rating in a research report on Monday, August 31st. Melius Research set a $420.00 target price on shares of NVIDIA in a report on Thursday, August 27th. Finally, Benchmark reaffirmed a "buy" rating and issued a $335.00 target price on shares of NVIDIA in a research report on Thursday, August 27th. Five equities research analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus price target of $321.89.

Insiders Place Their Bets

In related news, EVP Timothy S. Teter sold 30,460 shares of the company's stock in a transaction on Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the transaction, the executive vice president owned 2,687,660 shares of the company's stock, valued at approximately $598,810,648. This represents a 1.12% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the sale, the director owned 2,336,531 shares of the company's stock, valued at $541,187,310.22. The trade was a 21.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,766,118 shares of company stock worth $399,450,353 over the last three months. 3.94% of the stock is currently owned by company insiders.

NVIDIA Stock Performance

NASDAQ:NVDA opened at $229.28 on Friday. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The stock has a 50-day simple moving average of $222.66 and a two-hundred day simple moving average of $209.43. The firm has a market capitalization of $5.53 trillion, a PE ratio of 28.99, a P/E/G ratio of 1.78 and a beta of 2.22. NVIDIA Corporation has a 52-week low of $164.27 and a 52-week high of $243.37.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating analysts' consensus estimates of $2.09 by $0.13. The firm had revenue of $96.22 billion for the quarter, compared to analysts' expectations of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The business's quarterly revenue was up 105.9% on a year-over-year basis. During the same period in the previous year, the firm earned $1.05 EPS. Analysts forecast that NVIDIA Corporation will post 9.25 EPS for the current year.

NVIDIA Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were issued a dividend of $0.25 per share. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.4%. NVIDIA's payout ratio is currently 12.64%.

NVIDIA announced that its Board of Directors has initiated a stock repurchase plan on Monday, September 28th that allows the company to buy back $150.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to repurchase up to 2.8% of its stock through open market purchases. Share buyback plans are often a sign that the company's leadership believes its shares are undervalued.

NVIDIA Profile

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company's products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

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