Sumitomo Mitsui DS Asset Management Company Ltd Decreases Stock Holdings in NVIDIA Corporation $NVDA

Key Points

• Sumitomo Mitsui DS Asset Management reduced its NVIDIA stake by 1.4%, selling 57,742 shares and retaining 4.07 million shares valued at approximately $813.8 million. NVIDIA remains the firm’s largest holding, representing 5.6% of its portfolio.
• Despite the reduction, institutional ownership remains substantial at 65.27%, and analysts are broadly bullish: NVIDIA has an average “Buy” rating and a consensus price target of $324.34.
• NVIDIA reported quarterly revenue of $96.22 billion, up 105.9% year over year and above estimates, while insiders sold $571 million of stock over the past three months. The company also approved an $80 billion share-repurchase program and declared a $0.25 quarterly dividend.

Sumitomo Mitsui DS Asset Management Company Ltd lessened its stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 1.4% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 4,067,233 shares of the computer hardware maker's stock after selling 57,742 shares during the quarter. NVIDIA comprises approximately 5.6% of Sumitomo Mitsui DS Asset Management Company Ltd's investment portfolio, making the stock its biggest holding. Sumitomo Mitsui DS Asset Management Company Ltd's holdings in NVIDIA were worth $813,813,000 as of its most recent SEC filing.

Other institutional investors also recently modified their holdings of the company. Norges Bank bought a new position in NVIDIA in the 4th quarter worth approximately $62,244,133,000. J. Stern & Co. LLP boosted its position in NVIDIA by 13,709.1% in the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker's stock valued at $23,454,297,000 after buying an additional 124,849,603 shares during the last quarter. Cardano Risk Management B.V. increased its stake in shares of NVIDIA by 896.4% in 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 buying an additional 70,283,539 shares during the period. Capital Research Global Investors raised its position in shares of NVIDIA by 16.1% during the third quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker's stock worth $30,855,564,000 after acquiring an additional 22,896,705 shares during the last quarter. Finally, Laurel Wealth Advisors LLC raised its position in shares of NVIDIA by 15,496.1% during 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 acquiring an additional 21,725,326 shares during the last quarter. 65.27% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on NVDA shares. UBS Group set a $300.00 price target on NVIDIA and gave the company a "buy" rating in a report on Thursday, August 27th. Barclays reissued an "overweight" rating on shares of NVIDIA in a report on Thursday, May 21st. Daiwa Securities Group raised their target price on shares of NVIDIA from $215.00 to $255.00 and gave the company an "outperform" rating in a research note on Friday, May 22nd. Morgan Stanley set a $300.00 price target on shares of NVIDIA and gave the stock an "overweight" rating in a research report on Thursday, August 27th. Finally, KeyCorp reissued an "overweight" rating and set a $330.00 price target on shares of NVIDIA in a research note on Monday, August 24th. Two equities research analysts have rated the stock with a Strong Buy rating, fifty-one have assigned a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Buy" and an average price target of $324.34.

Insider Activity at NVIDIA

In other NVIDIA news, EVP Timothy S. Teter sold 30,000 shares of the company's stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $217.88, for a total value of $6,536,400.00. Following the completion of the sale, the executive vice president owned 2,687,660 shares of the company's stock, valued at approximately $585,587,360.80. This represents a 1.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of the stock in a transaction on Thursday, June 18th. The stock was 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 in the company, valued at approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 2,585,740 shares of company stock worth $571,015,527 in the last three months. 3.94% of the stock is owned by insiders.

NVIDIA Trading Down 2.4%

NASDAQ NVDA opened at $218.36 on Friday. NVIDIA Corporation has a 12 month low of $164.27 and a 12 month high of $236.54. The stock has a 50-day simple moving average of $212.82 and a 200 day simple moving average of $203.23. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. The company has a market capitalization of $5.26 trillion, a PE ratio of 27.61, a P/E/G ratio of 1.75 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping 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 company's revenue was up 105.9% compared to the same quarter last year. During the same quarter last year, the business earned $1.05 earnings per share. Research analysts forecast that NVIDIA Corporation will post 9.1 EPS for the current year.

NVIDIA Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be given 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 is Thursday, September 10th. NVIDIA's dividend payout ratio (DPR) is currently 12.64%.

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: NVIDIA’s AI growth outlook remains exceptionally strong. CEO Jensen Huang said revenue could grow roughly 70% next year, while the company’s next-generation Rubin platform is already shipping. Recent quarterly revenue reached $96.2 billion, up about 106% year over year, exceeding estimates and reinforcing expectations for continued data-center demand. Nvidia Has $96 Billion in Quarterly Revenue
• Positive Sentiment: Microsoft reportedly plans to more than triple its data-center capacity, a potentially significant demand catalyst for NVIDIA’s GPUs, networking products and full-stack systems. Strong August revenue growth at manufacturing partner TSMC also signals that AI-chip orders remain robust. Microsoft Data Center Expansion
• Positive Sentiment: NVIDIA is expanding its ecosystem through a planned Australian AI-infrastructure buildout of up to 2 gigawatts by 2027, partnerships with Palantir for sovereign supply-chain AI, and adoption of its chip-linking technology by d-Matrix. These initiatives broaden demand beyond traditional hyperscalers. Australian AI Infrastructure Expansion
• Neutral Sentiment: Competition and valuation remain investor concerns. Positron AI raised $875 million to develop memory-based inference technology that could challenge NVIDIA’s software and hardware advantage, while AMD and Broadcom are being promoted as alternative AI investments. High Treasury yields also make NVIDIA’s elevated valuation more difficult to justify.
• Negative Sentiment: The Justice Department is reportedly investigating whether NVIDIA’s licensing arrangement with AI-chip startup Groq was structured to avoid antitrust scrutiny. Any regulatory action could limit strategic flexibility or increase legal uncertainty. DOJ Groq Licensing Investigation
• Negative Sentiment: Insider selling is weighing on sentiment: director Mark Stevens reportedly sold hundreds of thousands of shares, and broader recent filings show substantial insider sales with no reported purchases. The transactions do not prove weakening fundamentals, but they can encourage profit-taking after the stock’s strong rally.
• Negative Sentiment: Higher oil prices, rising bond yields and a hotter inflation reading have pressured technology stocks broadly. These macro forces, combined with concerns about AI-capital-spending sustainability and fresh regulatory scrutiny, help explain why NVIDIA has decreased despite strong company-specific news.

About NVIDIA

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company's offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.

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