TCW Group Inc. Sells 529,451 Shares of NVIDIA Corporation $NVDA

Key Points

• TCW Group reduced its NVIDIA position by 9%, selling 529,451 shares in the second quarter. It still owned 5.35 million shares valued at approximately $1.07 billion, representing 7.2% of its portfolio.
• Wall Street remains broadly bullish: 50 analysts rate NVIDIA a Buy, three rate it a Strong Buy and two rate it a Hold, with a consensus price target of $324.34.
• NVIDIA beat quarterly expectations with $2.22 in earnings per share and $96.22 billion in revenue, up 105.9% year over year. However, elevated valuation, higher interest rates, potential AI-spending slowdowns and recent insider selling remain risks.

TCW Group Inc. trimmed its position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 9.0% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 5,351,808 shares of the computer hardware maker's stock after selling 529,451 shares during the quarter. NVIDIA makes up about 7.2% of TCW Group Inc.'s investment portfolio, making the stock its biggest position. TCW Group Inc.'s holdings in NVIDIA were worth $1,070,843,000 at the end of the most recent reporting period.

Other hedge funds also recently modified their holdings of the company. Defender Capital LLC. increased its holdings in NVIDIA by 0.7% during the 2nd quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker's stock valued at $1,507,000 after purchasing an additional 50 shares in the last quarter. Kooman & Associates boosted its stake in NVIDIA by 0.6% in the second quarter. Kooman & Associates now owns 8,464 shares of the computer hardware maker's stock worth $1,694,000 after purchasing an additional 50 shares in the last quarter. Roof Eidam Maycock Peralta LLC boosted its stake in NVIDIA by 0.3% in 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 purchasing an additional 50 shares in the last quarter. Persium Advisors LLC grew its holdings 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 purchasing an additional 50 shares during the last quarter. Finally, Spectrum Financial Alliance Ltd LLC increased its stake in shares of NVIDIA by 3.8% in the first quarter. Spectrum Financial Alliance Ltd LLC now owns 1,395 shares of the computer hardware maker's stock valued at $243,000 after buying an additional 51 shares in the last quarter. Institutional investors and hedge funds own 65.27% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on NVDA. Wedbush lifted their price target on NVIDIA from $330.00 to $345.00 and gave the company an "outperform" rating in a report on Thursday, August 27th. Royal Bank Of Canada raised their price objective on shares of NVIDIA from $300.00 to $330.00 and gave the company an "outperform" rating in a research report on Thursday, August 27th. Oppenheimer set a $315.00 target price on shares of NVIDIA and gave the stock an "outperform" rating in a research note on Thursday, August 27th. DA Davidson reiterated a "buy" rating and set a $300.00 target price on shares of NVIDIA in a research report on Thursday, August 27th. Finally, Benchmark reissued a "buy" rating and set a $335.00 price target on shares of NVIDIA in a research note on Thursday, August 27th. Three analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus target price of $324.34.

More NVIDIA News

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 Up 2.3%

Shares of NASDAQ NVDA opened at $227.38 on Tuesday. NVIDIA Corporation has a 1 year low of $164.27 and a 1 year high of $236.54. The firm's 50-day moving average is $215.13 and its 200-day moving average is $204.77. 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 firm has a market capitalization of $5.48 trillion, a PE ratio of 28.75, a price-to-earnings-growth ratio of 1.72 and a beta of 2.22.

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

NVIDIA Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be given a dividend of $0.25 per share. The ex-dividend date is Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.4%. NVIDIA's payout ratio is presently 12.64%.

Insider Activity

In other NVIDIA news, 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 value 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. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy S. Teter sold 30,000 shares of the business's stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $217.88, for a total value of $6,536,400.00. Following the transaction, the executive vice president owned 2,687,660 shares of the company's stock, valued at $585,587,360.80. The trade was a 1.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,735,658 shares of company stock valued at $392,663,865 in the last 90 days. 3.94% of the stock is 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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