Stonebridge Capital Management Inc. Sells 7,587 Shares of NVIDIA Corporation $NVDA

Key Points

• Stonebridge Capital Management cut its NVIDIA position by 26.8% in the second quarter, selling 7,587 shares and retaining 20,757 shares valued at approximately $4.15 million.
• NVIDIA reported quarterly EPS of $2.22 and revenue of $96.22 billion, exceeding analyst estimates, while revenue more than doubled year over year. The company also authorized a $150 billion stock-buyback program.
• Wall Street remains broadly bullish, with an average “Buy” rating and an average price target of $321.89, although continued insider selling, high valuation concerns and potential competition from Microsoft’s in-house AI chips pose risks.

Stonebridge Capital Management Inc. cut its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 26.8% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 20,757 shares of the computer hardware maker's stock after selling 7,587 shares during the period. NVIDIA comprises approximately 2.0% of Stonebridge Capital Management Inc.'s holdings, making the stock its 18th largest holding. Stonebridge Capital Management Inc.'s holdings in NVIDIA were worth $4,153,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the business. LightSquare Wealth Management LLC increased its position in NVIDIA by 0.3% in the 2nd quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker's stock valued at $3,741,000 after acquiring an additional 49 shares in the last quarter. Defender Capital LLC. increased its stake in shares of NVIDIA by 0.7% in the 2nd quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker's stock valued at $1,507,000 after buying an additional 50 shares during the period. Kooman & Associates increased its stake in shares of NVIDIA by 0.6% in the 2nd quarter. Kooman & Associates now owns 8,464 shares of the computer hardware maker's stock valued at $1,694,000 after buying an additional 50 shares during the period. Roof Eidam Maycock Peralta LLC raised its position in shares of NVIDIA by 0.3% during the second quarter. Roof Eidam Maycock Peralta LLC now owns 18,827 shares of the computer hardware maker's stock worth $3,767,000 after acquiring an additional 50 shares during the last quarter. Finally, Persium Advisors LLC raised its position in shares of NVIDIA by 3.5% during the second quarter. Persium Advisors LLC now owns 1,466 shares of the computer hardware maker's stock worth $293,000 after acquiring an additional 50 shares during the last quarter. 65.27% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at NVIDIA

In related news, Director Mark Stevens sold 622,239 shares of the stock in a transaction on Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the completion of the transaction, the director owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Colette Kress sold 34,918 shares of the stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the transaction, the chief financial officer owned 765,103 shares of the company's stock, valued at approximately $167,595,812.15. This represents a 4.36% 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. In the last quarter, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Corporate insiders own 3.94% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on NVDA shares. Raymond James Financial set a $515.00 price target on NVIDIA and gave the company a "strong-buy" rating in a research note on Thursday, August 27th. Benchmark restated a "buy" rating and set a $335.00 target price on shares of NVIDIA in a research report on Thursday, August 27th. Rothschild & Co Redburn lifted their price target on shares of NVIDIA from $300.00 to $325.00 in a research report on Thursday, August 27th. Citigroup reissued a "buy" rating and set a $315.00 price target (up from $300.00) on shares of NVIDIA in a research note on Thursday, August 27th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of NVIDIA in a report on Monday, August 31st. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, NVIDIA presently has an average rating of "Buy" and an average target price of $321.89.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA and Cisco announced USFP, a next-generation optical module designed to support 400Gb/s-per-lane signals and up to 12.8Tb/s of capacity. The technology could help AI data centers scale bandwidth while reducing power use and network complexity. NVIDIA and Cisco announce USFP
• Positive Sentiment: Navitas Semiconductor is collaborating with NVIDIA on a 24-kilowatt power-delivery board for next-generation AI infrastructure. The single-stage design is intended to improve efficiency and reduce board space, reinforcing demand for NVIDIA-based AI factories. Navitas collaborates with NVIDIA
• Positive Sentiment: Bitdeer secured an eight-year agreement for a 60MW Malaysia facility designed for NVIDIA’s Vera Rubin systems, bringing its contracted AI data-center capacity to approximately 333.5MW. This provides another indication of long-term infrastructure demand. Bitdeer expands Malaysia AI campus
• Neutral Sentiment: NVIDIA is reportedly considering a larger investment in or acquisition of open-weight AI startup Reflection AI. The move could broaden NVIDIA’s software and model ecosystem, but discussions are preliminary and could fail to produce a deal. NVIDIA and Reflection AI talks
• Neutral Sentiment: Analysts and commentators remain divided: some argue triple-digit growth makes NVDA reasonably valued and see further upside, while others point to technical signs of a potential peak, a roughly $5.5 trillion valuation, and concentration risk in AI-related equities.
• Negative Sentiment: Microsoft said it plans to rely increasingly on its internally developed Maia chips for AI inference, potentially reducing its dependence on NVIDIA GPUs and intensifying competition from hyperscaler-designed silicon. Microsoft to rely more on Maia chips
• Negative Sentiment: Reports that OpenAI’s annualized revenue may be about $50 billion—below previously cited estimates—have raised questions about AI spending, infrastructure demand and the valuation of AI suppliers. Separately, Firmus’ canceled data-center IPO suggested financing conditions for AI infrastructure could be tightening.
• Negative Sentiment: Technical analysts warned that NVDA’s retreat from its record high could signal weakening momentum. Investor caution is also reflected in a reported $21 million options position betting the stock falls below $180 by January and continued insider selling, although these signals do not necessarily predict operating performance. Nvidia falls back from record high

NVIDIA Trading Down 1.3%

NASDAQ NVDA opened at $226.32 on Tuesday. The firm has a market cap of $5.45 trillion, a P/E ratio of 28.61, a P/E/G ratio of 1.77 and a beta of 2.22. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The stock's 50-day moving average is $223.05 and its 200-day moving average is $210.02. NVIDIA Corporation has a one year low of $164.27 and a one year 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 EPS for the quarter, beating the consensus estimate of $2.09 by $0.13. The business had revenue of $96.22 billion for the quarter, compared to analysts' expectations of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The firm's revenue was up 105.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.05 EPS. Sell-side analysts anticipate that NVIDIA Corporation will post 9.25 earnings per share for the current fiscal year.

NVIDIA declared that its board has approved a stock buyback plan on Monday, September 28th that authorizes the company to buy back $150.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Stock repurchase plans are usually a sign that the company's management believes its stock is undervalued.

NVIDIA Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA's dividend payout ratio (DPR) is currently 12.64%.

NVIDIA Company 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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