SurgoCap Partners LP Buys Shares of 622,539 NVIDIA Corporation $NVDA

Key Points

• SurgoCap Partners LP opened a new position in NVIDIA during the fourth quarter, buying 622,539 shares valued at about $116.1 million. The stake represents roughly 3.2% of the fund’s portfolio and is its 13th-largest holding.
• Several other institutional investors also increased their NVIDIA holdings, and hedge funds and other institutions now own 65.27% of the company’s shares. However, insider activity was negative, with Director Aarti S. Shah and CFO Colette Kress both selling stock recently.
• NVIDIA reported strong quarterly results, including EPS of $1.87 versus estimates of $1.76 and revenue of $81.62 billion, up 85.2% year over year. The company also authorized an $80 billion share buyback, raised its quarterly dividend to $0.25 per share, and continues to attract broadly bullish analyst coverage.

SurgoCap Partners LP purchased a new position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 622,539 shares of the computer hardware maker's stock, valued at approximately $116,104,000. NVIDIA accounts for approximately 3.2% of SurgoCap Partners LP's investment portfolio, making the stock its 13th biggest holding.

A number of other large investors also recently made changes to their positions in the business. Harborfront Financial Group LLC purchased a new position in shares of NVIDIA during the 4th quarter worth $597,000. Alberta Investment Management Corp lifted its stake in shares of NVIDIA by 100.0% during the 4th quarter. Alberta Investment Management Corp now owns 787,000 shares of the computer hardware maker's stock worth $146,776,000 after purchasing an additional 393,524 shares during the period. Faithward Advisors LLC lifted its stake in shares of NVIDIA by 4.2% during the 4th quarter. Faithward Advisors LLC now owns 70,287 shares of the computer hardware maker's stock worth $13,109,000 after purchasing an additional 2,839 shares during the period. University of Texas Texas AM Investment Management Co. boosted its holdings in NVIDIA by 20.0% in the fourth quarter. University of Texas Texas AM Investment Management Co. now owns 194,858 shares of the computer hardware maker's stock valued at $36,341,000 after acquiring an additional 32,424 shares during the last quarter. Finally, Innovative Wealth Building LLC boosted its holdings in NVIDIA by 24.5% in the fourth quarter. Innovative Wealth Building LLC now owns 2,433 shares of the computer hardware maker's stock valued at $454,000 after acquiring an additional 479 shares during the last quarter. Hedge funds and other institutional investors own 65.27% of the company's stock.

Insider Buying and Selling at NVIDIA

In other news, Director Aarti S. Shah sold 19,000 shares of the business's stock in a transaction that occurred on Thursday, March 19th. The stock was sold at an average price of $176.71, for a total transaction of $3,357,490.00. Following the completion of the transaction, the director directly owned 36,007 shares in the company, valued at approximately $6,362,796.97. The trade was a 34.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Colette Kress sold 42,650 shares of the business's stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $174.89, for a total value of $7,459,058.50. Following the transaction, the chief financial officer owned 881,387 shares of the company's stock, valued at approximately $154,145,772.43. This represents a 4.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 1,319,457 shares of company stock valued at $277,398,643. 3.94% of the stock is currently owned by insiders.

NVIDIA Stock Down 2.4%

NASDAQ:NVDA opened at $207.41 on Wednesday. The company has a market capitalization of $5.02 trillion, a price-to-earnings ratio of 31.76, a price-to-earnings-growth ratio of 0.47 and a beta of 2.22. NVIDIA Corporation has a one year low of $142.03 and a one year high of $236.54. The stock has a 50-day simple moving average of $208.14 and a 200 day simple moving average of $191.84. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating analysts' consensus estimates of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company had revenue of $81.62 billion during the quarter, compared to the consensus estimate of $78.42 billion. During the same period in the previous year, the firm posted $0.81 earnings per share. NVIDIA's quarterly revenue was up 85.2% compared to the same quarter last year. Sell-side analysts predict that NVIDIA Corporation will post 8.65 EPS for the current fiscal year.

NVIDIA declared that its board has authorized a stock repurchase program on Wednesday, May 20th that permits the company to buyback $80.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board believes its stock is undervalued.

NVIDIA Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Thursday, June 4th will be given a dividend of $0.25 per share. This is a boost from NVIDIA's previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Thursday, June 4th. NVIDIA's payout ratio is presently 15.31%.

Analysts Set New Price Targets

A number of brokerages recently weighed in on NVDA. Fundamental Research set a $218.00 target price on NVIDIA in a report on Thursday, February 26th. BNP Paribas Exane raised their price objective on NVIDIA from $270.00 to $285.00 and gave the company an "outperform" rating in a research report on Thursday, May 21st. Barclays reissued an "overweight" rating on shares of NVIDIA in a research report on Thursday, May 21st. Tigress Financial reaffirmed a "strong-buy" rating and set a $425.00 target price (up from $360.00) on shares of NVIDIA in a research report on Wednesday, May 27th. Finally, Royal Bank Of Canada set a $280.00 target price on 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 issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Buy" and a consensus price target of $305.67.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA announced a multiyear partnership with SK hynix to co-develop advanced AI memory technologies and autonomous fab tools, reinforcing its ecosystem leadership in next-generation AI infrastructure. SK hynix Partners With Nvidia On AI Memory And Autonomous Fabs
• Positive Sentiment: Reports that NVIDIA landed additional AI infrastructure deals in South Korea added to investor optimism that demand for its chips and systems remains strong. Nvidia Corp Lands AI Infrastructure Deals in South Korea
• Positive Sentiment: Several bullish articles highlighted continued Wall Street confidence in NVIDIA’s growth path, with analysts pointing to strong data center GPU demand and the upcoming Vera Rubin platform as major catalysts. Can Nvidia Stock Reach $743 in the Next 12 Months?
• Positive Sentiment: Investors also reacted positively to NVIDIA’s move to raise about $20 billion in its first bond sale in years, which signals confidence in funding the massive AI buildout and keeping pace with infrastructure demand. Nvidia plans to raise about $20 billion in first debt sale since start of AI boom
• Neutral Sentiment: Commentary from 24/7 Wall St. and others suggested that NVIDIA remains the default AI trade, but also noted growing debate over valuation and competition from other chipmakers and custom silicon efforts. Nvidia Is Back Above $5 Trillion. Here’s What Comes Next
• Neutral Sentiment: Articles pointing out that AI stocks are increasingly crowded and that some investors are rotating into other names may temper enthusiasm, but they do not change the core demand story for NVDA. Forget Betting Everything on NVIDIA
• Negative Sentiment: Some coverage emphasized that AI data centers and suppliers are taking on more debt to finance the boom, which could raise concerns about capital intensity and pressure on the broader AI supply chain. Nvidia As Big Borrower: AI Data Centers, Suppliers Racking Up Debt

About NVIDIA

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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