Suncoast Equity Management Trims Stock Position in NVIDIA Corporation $NVDA

Key Points

• Suncoast Equity Management cut its NVIDIA position by 8.9% in the second quarter, selling 38,434 shares and retaining 395,024 shares valued at approximately $79 million. NVIDIA remains the firm’s largest holding, representing 9.9% of its portfolio.
• Institutional ownership remains substantial at 65.27%, with major investors including Bank of America, Invesco, Amundi and Dimensional Fund Advisors holding or increasing large positions.
• NVIDIA reported quarterly revenue of $96.22 billion, up 105.9% year over year, and EPS of $2.22, exceeding estimates. Analysts maintain a consensus “Buy” rating with an average price target of $324.34, though elevated valuation, interest rates and insider selling remain risks.

Suncoast Equity Management decreased its position in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 8.9% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 395,024 shares of the computer hardware maker's stock after selling 38,434 shares during the quarter. NVIDIA accounts for approximately 9.9% of Suncoast Equity Management's holdings, making the stock its largest position. Suncoast Equity Management's holdings in NVIDIA were worth $79,040,000 at the end of the most recent quarter.

A number of other institutional investors have also made changes to their positions in NVDA. Bank of America Corp DE raised its holdings in shares of NVIDIA by 2.1% during the first quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker's stock worth $33,345,453,000 after purchasing an additional 4,019,505 shares during the period. Invesco Ltd. lifted its position in shares of NVIDIA by 0.3% in the 4th quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker's stock worth $26,714,167,000 after buying an additional 446,178 shares during the last quarter. J. Stern & Co. LLP boosted its holdings in shares of 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 period. Amundi boosted its holdings in shares of NVIDIA by 10.4% in the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock valued at $23,329,141,000 after buying an additional 12,575,177 shares during the period. Finally, Dimensional Fund Advisors LP grew its position in shares of NVIDIA by 0.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker's stock valued at $16,479,126,000 after buying an additional 555,221 shares during the last quarter. 65.27% of the stock is currently owned by institutional investors.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: China sales could receive a boost: Upcoming discussions between U.S. President Donald Trump and Chinese President Xi Jinping have raised hopes that restrictions on Nvidia’s ability to sell advanced chips in China could ease. However, negotiations have not yet produced licenses or customer orders. Nvidia Stock Can Surge on Trump’s China Talks
• Positive Sentiment: AI demand is expanding: Nvidia is positioning its technology for AI agents, CPUs, cybersecurity, autonomous vehicles and potentially orbital data centers. Its support for Swedish autonomous-truck company Einride highlights additional growth opportunities beyond traditional data-center GPUs. Nvidia to Support Scale-Up of Autonomous Trucks at Sweden's Einride
• Positive Sentiment: Strategic AI acquisition: Nvidia reportedly agreed to acquire Hugging Face for approximately $12.9 billion, giving it access to a large ecosystem of AI models, datasets, applications and developers. The deal could strengthen Nvidia’s software and developer distribution, though its financial impact is not yet clear. Nvidia’s Hugging Face Deal
• Positive Sentiment: Analyst support remains strong: Wall Street’s average price target implies substantial additional upside, while a broker raised its fiscal 2027 EPS estimate. Nvidia’s latest reported quarter also showed revenue growth above 100% year over year and an earnings beat. Wall Street Analysts See Upside in Nvidia
• Neutral Sentiment: CEO Jensen Huang rejected AI “doomsday” forecasts and argued that existing laws are sufficient, reinforcing Nvidia’s stance against regulation that could slow adoption. His comments may support sentiment but do not directly change earnings expectations. Nvidia CEO Rejects AI Doomsday Fears
• Negative Sentiment: Rates and valuation remain key risks: Commentary warned that higher interest rates could pressure heavily valued AI stocks by raising financing costs and reducing the present value of future growth. Nvidia’s high expectations leave the shares sensitive to any slowdown in hyperscaler spending or AI demand. Why Higher Rates Are Becoming Nvidia’s Biggest Threat
• Negative Sentiment: Nvidia’s CFO sold roughly $7.6 million of stock. The transaction is small relative to the company’s market value but may add modest insider-selling pressure.

NVIDIA Stock Performance

Shares of NVDA stock opened at $227.38 on Tuesday. NVIDIA Corporation has a 12-month low of $164.27 and a 12-month high of $236.54. 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 firm has a market capitalization of $5.48 trillion, a price-to-earnings ratio of 28.75, a price-to-earnings-growth ratio of 1.72 and a beta of 2.22. The business has a 50 day simple moving average of $215.13 and a 200 day simple moving average of $204.77.

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

NVIDIA Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be issued a $0.25 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.4%. NVIDIA's dividend payout ratio is presently 12.64%.

Wall Street Analyst Weigh In

NVDA has been the topic of several research reports. JPMorgan Chase & Co. increased their price objective on shares of NVIDIA from $280.00 to $320.00 and gave the stock an "overweight" rating in a research note on Thursday, August 27th. Oppenheimer set a $315.00 target price on NVIDIA and gave the company an "outperform" rating in a report on Thursday, August 27th. KGI Securities increased their price target on NVIDIA from $335.00 to $345.00 in a research report on Thursday, August 27th. Evercore set a $465.00 price target on NVIDIA and gave the stock an "outperform" rating in a report on Thursday, August 27th. Finally, The Goldman Sachs Group restated a "buy" rating on shares of NVIDIA in a research report on Thursday, September 10th. Three research analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Buy" and an average price target of $324.34.

Insider Buying and Selling

In related news, EVP Timothy Teter sold 30,000 shares of the stock in a transaction dated 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 transaction, the executive vice president owned 2,687,660 shares in the company, valued at $585,587,360.80. This represents a 1.10% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 34,918 shares of the firm's stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the transaction, the chief financial officer directly owned 765,103 shares in the company, valued at approximately $167,595,812.15. The trade was a 4.36% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,735,658 shares of company stock valued at $392,663,865 over the last 90 days. 3.94% of the stock is currently owned by company insiders.

NVIDIA Profile

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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