Up Capital Management Inc. Buys New Stake in NVIDIA Corporation $NVDA

Key Points

• Up Capital Management disclosed a new stake in NVIDIA, buying 148,728 shares worth about $27.7 million. NVIDIA is now the firm’s largest holding, making up roughly 24.8% of its portfolio.
• NVIDIA reported strong quarterly results, with EPS of $1.87 beating estimates and revenue of $81.61 billion topping forecasts. Revenue jumped 85.2% year over year, underscoring continued momentum in AI and data center demand.
• The company also boosted its shareholder returns, raising its quarterly dividend from $0.01 to $0.25 per share and authorizing an $80 billion share buyback. Despite this, the stock was down about 4.1% amid broader AI spending concerns and some legal/headline risk.

Up Capital Management Inc. bought a new position in NVIDIA Corporation (NASDAQ:NVDA - Free Report) during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 148,728 shares of the computer hardware maker's stock, valued at approximately $27,738,000. NVIDIA accounts for about 24.8% of Up Capital Management Inc.'s portfolio, making the stock its biggest position.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the company. Lifetime Wealth Management P.C. acquired a new position in shares of NVIDIA during the 4th quarter worth about $26,000. Longfellow Investment Management Co. LLC grew its holdings in NVIDIA by 47.9% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock valued at $33,000 after buying an additional 67 shares during the last quarter. Spurstone Advisory Services LLC bought a new position in NVIDIA in the 2nd quarter worth approximately $40,000. Inspire Investing LLC bought a new position in NVIDIA in the 4th quarter worth approximately $44,000. Finally, AlphaCentric Advisors LLC acquired a new position in shares of NVIDIA during the fourth quarter worth approximately $45,000. Institutional investors and hedge funds own 65.27% of the company's stock.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA continues to secure new AI-related partnerships and product momentum, including the launch of its BioNeMo Agent Toolkit for life sciences and additional collaborations around digital twins, robotics, and energy infrastructure. Nvidia launches BioNeMo agent toolkit for AI-driven life sciences research
• Positive Sentiment: Analysts and several articles continue to frame NVIDIA as a long-term winner from AI infrastructure buildout, with some bullish commentary pointing to strong earnings growth, major data-center demand, and attractive valuation relative to its growth. Nvidia: The $1 Trillion Trade Hiding In Plain Sight
• Neutral Sentiment: The company’s latest earnings remain a positive backdrop: NVIDIA beat expectations on both EPS and revenue, with revenue up sharply year over year, reinforcing that fundamentals are still strong despite the stock’s weakness.
• Negative Sentiment: AI spending concerns are weighing on the whole chip complex, with reports that SK Hynix is slowing HBM expansion and traders worrying about the sustainability of debt-funded AI capex. That has hit NVIDIA alongside peers like AMD, Intel, Micron, and SanDisk. Lam Research, Qualcomm, and Western Digital Stocks Trade Down, What You Need To Know
• Negative Sentiment: There is also some company-specific headline risk from a Reuters report that NVIDIA was sued by music company Jamendo over AI training, adding to near-term uncertainty. Nvidia sued by music company Jamendo over AI training

NVIDIA Stock Down 4.1%

Shares of NVDA stock opened at $200.00 on Wednesday. The stock has a market cap of $4.84 trillion, a P/E ratio of 30.63, a price-to-earnings-growth ratio of 0.47 and a beta of 2.22. NVIDIA Corporation has a one year low of $145.50 and a one year high of $236.54. The stock has a fifty day moving average price of $210.62 and a 200 day moving average price of $192.80. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, topping analysts' consensus estimates of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. During the same quarter in the previous year, the company earned $0.81 earnings per share. The business's revenue was up 85.2% compared to the same quarter last year. Analysts predict that NVIDIA Corporation will post 8.65 earnings per share for the current year.

NVIDIA Increases Dividend

The firm also recently announced 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 an increase from NVIDIA's previous quarterly dividend of $0.01. The ex-dividend date is Thursday, June 4th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA's dividend payout ratio (DPR) is presently 15.31%.

NVIDIA announced that its Board of Directors has approved a stock buyback plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to reacquire up to 1.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on NVDA. Stifel Nicolaus set a $282.00 price objective on NVIDIA and gave the company a "buy" rating in a research report on Thursday, May 21st. China Renaissance started coverage on shares of NVIDIA in a research note on Friday, June 5th. They set a "buy" rating and a $319.00 target price for the company. UBS Group increased their price target on shares of NVIDIA from $275.00 to $280.00 and gave the company a "buy" rating in a report on Thursday, May 21st. TD Cowen restated a "buy" rating and issued a $275.00 price target (up from $235.00) on shares of NVIDIA in a research report on Friday, May 15th. Finally, Royal Bank Of Canada set a $280.00 price objective on shares of NVIDIA in a report on Thursday, May 21st. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Buy" and an average target price of $305.67.

Insider Activity at NVIDIA

In other NVIDIA news, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction that occurred 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 sale, the director directly owned 5,207,271 shares of the company's stock, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director John Dabiri sold 625 shares of the company's stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the completion of the sale, the director owned 14,163 shares in the company, valued at approximately $3,030,882. This represents a 4.23% 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. Insiders have sold a total of 1,901,125 shares of company stock valued at $410,583,015 over the last quarter. 3.94% of the stock is owned by company insiders.

NVIDIA Profile

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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