Versant Capital Management Inc Sells 3,556 Shares of NVIDIA Corporation $NVDA

Key Points

• Versant Capital Management reduced its NVIDIA stake by 3.7%, selling 3,556 shares during the second quarter and retaining 92,349 shares valued at approximately $18.5 million. Institutional investors collectively own 65.27% of NVIDIA.
• NVIDIA reported strong quarterly results, with revenue rising 85.2% year over year to $81.61 billion and EPS of $1.87, exceeding analyst expectations. The company also approved an $80 billion share-repurchase program and increased its quarterly dividend to $0.25 per share.
• Analysts remain broadly bullish, with a consensus “Buy” rating and an average price target of $305.94, but concerns persist around NVIDIA’s high valuation, insider selling, customer concentration, competition from in-house and Chinese AI chips, and potential circular-financing risks.

Versant Capital Management Inc lowered its stake in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 3.7% in the 2nd quarter, according to the company in its most recent disclosure with the SEC. The firm owned 92,349 shares of the computer hardware maker's stock after selling 3,556 shares during the quarter. NVIDIA makes up approximately 1.7% of Versant Capital Management Inc's portfolio, making the stock its 12th largest holding. Versant Capital Management Inc's holdings in NVIDIA were worth $18,478,000 as of its most recent SEC filing.

A number of other large investors have also added to or reduced their stakes in the stock. Diversified Enterprises LLC raised its holdings in NVIDIA by 44.2% during the fourth quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker's stock valued at $23,798,000 after acquiring an additional 39,129 shares during the period. Altshuler Shaham Ltd grew its position in shares of NVIDIA by 6,451.9% during the first quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker's stock worth $111,134,000 after purchasing an additional 627,510 shares in the last quarter. ASR Vermogensbeheer N.V. grew its position in shares of NVIDIA by 1.8% during the fourth quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker's stock worth $591,086,000 after purchasing an additional 54,877 shares in the last quarter. Storen Legacy Partners LLC bought a new stake in NVIDIA during the 4th quarter valued at approximately $1,350,000. Finally, Weaver Capital Management LLC raised its stake in NVIDIA by 5.5% during the 4th quarter. Weaver Capital Management LLC now owns 85,216 shares of the computer hardware maker's stock valued at $15,893,000 after purchasing an additional 4,439 shares during the period. Hedge funds and other institutional investors own 65.27% of the company's stock.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: $500 billion AI financing initiative: NVIDIA’s agreement with major financial firms—including Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR—could reduce funding barriers for data-center construction and stimulate demand for NVIDIA GPUs, networking products and software. Bank of America said the plan helps ease financing risk. NVIDIA's $500B Funding Push: Can It Unlock More Revenue Growth?
• Positive Sentiment: Demand remains broad and durable: CoreWeave reportedly continues renting older A100 GPUs through 2029 at full pricing, challenging fears of rapid hardware obsolescence. NVIDIA also added seven Japanese industrial companies to its physical-AI coalition, potentially expanding long-term demand in robotics and manufacturing. This 2020 Nvidia chip is still going strong
• Positive Sentiment: Analyst and institutional support: Bank of America identified NVIDIA and AMD as leading beneficiaries of the expanding AI chip market, while Wells Fargo reiterated an Overweight rating. Cathie Wood’s Ark Invest also purchased approximately $59.9 million of NVIDIA shares before earnings. BofA picks AMD and Nvidia as AI chip winners
• Neutral Sentiment: Earnings are the next major catalyst: Investors are watching the price level highlighted by Bank of America and whether NVIDIA can extend its recent momentum. Consensus expectations call for another substantial revenue increase, raising the importance of guidance on Blackwell, Vera Rubin, networking and customer diversification. BofA Says This Nvidia Price Level Is the One to Watch Before Earnings
• Negative Sentiment: Financing and valuation concerns persist: Critics, including Michael Burry, argue that NVIDIA’s investments, customer funding and GPU sales may create a circular-financing web. The stock’s very large market capitalization leaves little room for execution or demand disappointments. Nvidia is trying to quiet circular financing accusations
• Negative Sentiment: Geopolitical and customer risks: CEO Jensen Huang warned that China shifting AI workloads toward Huawei hardware could weaken U.S. chip dominance. Investors are also examining whether hyperscaler concentration and potential customer self-designed chips could eventually pressure NVIDIA’s growth.
• Neutral Sentiment: Market backdrop: Asian market halts and currency-driven liquidations have created volatility across semiconductor stocks, but the reported disruptions appear liquidity-related rather than evidence of weakening AI demand. Asian Market Circuit Breakers Hit Stocks, Not AI Demand

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the stock. Citic Securities boosted their target price on shares of NVIDIA from $242.00 to $315.00 and gave the stock a "buy" rating in a report on Friday, May 22nd. BNP Paribas Exane lifted their price target on shares of NVIDIA from $270.00 to $285.00 and gave the company an "outperform" rating in a report on Thursday, May 21st. JPMorgan Chase & Co. boosted their price target on shares of NVIDIA from $265.00 to $280.00 and gave the stock an "overweight" rating in a research note on Thursday, May 21st. Seaport Research Partners increased their price objective on shares of NVIDIA from $140.00 to $180.00 and gave the company a "sell" rating in a report on Thursday, May 21st. Finally, Robert W. Baird set a $500.00 target price on NVIDIA and gave the stock an "outperform" rating in a report on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus target price of $305.94.

Insider Activity at NVIDIA

In other NVIDIA news, Director Mark A. Stevens sold 885,000 shares of the stock in a transaction dated Thursday, June 18th. The shares were 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 directly owned 5,207,271 shares of the company's stock, valued at approximately $1,094,412,146.07. This represents a 14.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director John Dabiri sold 625 shares of the firm'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 transaction of $133,750.00. Following the completion of the sale, the director owned 14,163 shares of the company's stock, valued at approximately $3,030,882. This trade represents a 4.23% 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 1,901,125 shares of company stock valued at $410,583,015 over the last quarter. 3.94% of the stock is owned by corporate insiders.

NVIDIA Trading Up 0.5%

NVDA opened at $225.30 on Friday. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The stock's 50 day moving average price is $205.74 and its 200-day moving average price is $198.32. NVIDIA Corporation has a one year low of $164.07 and a one year high of $236.54. The stock has a market cap of $5.45 trillion, a price-to-earnings ratio of 34.50, a P/E/G ratio of 0.44 and a beta of 2.23.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping analysts' consensus estimates of $1.76 by $0.11. The firm had revenue of $81.61 billion for the quarter, compared to analysts' expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business's revenue for the quarter was up 85.2% on a year-over-year basis. During the same period in the prior year, the business posted $0.81 earnings per share. On average, equities analysts forecast that NVIDIA Corporation will post 8.79 EPS for the current year.

NVIDIA Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were paid a dividend of $0.25 per share. This is an increase from NVIDIA's previous quarterly dividend of $0.01. The ex-dividend date was Thursday, June 4th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.4%. NVIDIA's dividend payout ratio (DPR) is currently 15.31%.

NVIDIA announced that its board has authorized a share buyback program on Wednesday, May 20th that allows the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to reacquire up to 1.5% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board of directors believes its shares are undervalued.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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