Watershed Asset Management L.L.C. Makes New Investment in NVIDIA Corporation $NVDA

Key Points

• Watershed Asset Management initiated a 10,900-share NVIDIA position worth approximately $1.9 million, making NVIDIA its 16th-largest holding. Institutional investors collectively own 65.27% of the company.
• NVIDIA reported quarterly earnings and revenue above analyst expectations, with revenue up 85.2% year over year. The company also authorized an $80 billion share buyback and raised its quarterly dividend to $0.25 per share.
• Analysts remain broadly bullish, with a consensus “Buy” rating and a $304.26 price target, although shares recently traded below $200 amid concerns over AI-financing risks, insider selling, geopolitical issues and cautious short-term momentum.

Watershed Asset Management L.L.C. bought a new stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 10,900 shares of the computer hardware maker's stock, valued at approximately $1,901,000. NVIDIA makes up approximately 2.0% of Watershed Asset Management L.L.C.'s investment portfolio, making the stock its 16th largest holding.

Several other large investors have also made changes to their positions in the company. Diversified Enterprises LLC increased its stake in NVIDIA by 44.2% in the fourth quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker's stock valued at $23,798,000 after purchasing an additional 39,129 shares in the last quarter. ASR Vermogensbeheer N.V. boosted 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 position in shares of NVIDIA during the fourth quarter worth $1,350,000. Weaver Capital Management LLC grew its holdings in shares of NVIDIA by 5.5% in 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 buying an additional 4,439 shares during the period. Finally, Arrowstreet Capital Limited Partnership grew its holdings in shares of NVIDIA by 3.6% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 26,652,420 shares of the computer hardware maker's stock valued at $4,970,704,000 after buying an additional 936,506 shares during the period. Institutional investors own 65.27% of the company's stock.

NVIDIA Stock Performance

Shares of NVDA stock opened at $190.01 on Thursday. NVIDIA Corporation has a 12 month low of $164.07 and a 12 month high of $236.54. The company's fifty day simple moving average is $206.20 and its 200-day simple moving average is $196.01. The firm has a market cap of $4.60 trillion, a PE ratio of 29.10, a P/E/G ratio of 0.38 and a beta of 2.21. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, beating 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 business had revenue of $81.61 billion during the quarter, compared to the consensus estimate of $78.42 billion. During the same quarter last year, the firm earned $0.81 earnings per share. The firm's revenue for the quarter was up 85.2% compared to the same quarter last year. Equities research analysts expect that NVIDIA Corporation will post 8.79 EPS for the current fiscal year.

NVIDIA declared that its Board of Directors has authorized a share buyback 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 typically an indication that the company's management believes its shares are undervalued.

NVIDIA Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Thursday, June 4th were issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date was Thursday, June 4th. This is a positive change from NVIDIA's previous quarterly dividend of $0.01. NVIDIA's dividend payout ratio is 15.31%.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Strong AI demand remains evident across NVIDIA’s ecosystem. Partner SK Hynix reported a more than sixfold increase in quarterly operating profit, driven by advanced-memory demand from AI data centers, while its relationship with NVIDIA and HBM supply commitments support continued demand for NVIDIA systems. SK Hynix posts sixfold rise in Q2 profit on AI chip demand
• Positive Sentiment: Analysts continue to see substantial upside, with 26 recent price targets carrying a median of $308.50. Erste Group also modestly raised its fiscal 2027 and fiscal 2028 earnings estimates, reinforcing the case that long-term AI growth remains intact.
• Positive Sentiment: NVIDIA will report fiscal second-quarter 2027 results on August 26. The scheduled release gives investors a clear near-term catalyst and an opportunity to evaluate demand, margins and the impact of new products. NVIDIA Sets Conference Call for Second-Quarter Financial Results
• Neutral Sentiment: Reports that NVIDIA may be backing major OpenAI and Texas data-center projects highlight potential for additional chip demand, but the proposed financing arrangements also increase NVIDIA’s exposure to customers’ capital needs and execution risks. Nvidia behind $50 billion lease on Texas data center
• Negative Sentiment: Investors are concerned that circular financing and credit risks could make AI infrastructure spending less durable. Warnings about NVIDIA’s proposed OpenAI backstop, losses at leveraged AI-cloud companies and rising borrowing costs have pressured the broader AI trade. NVIDIA’s OpenAI Backstop Puts AI Financing Risk in Focus
• Negative Sentiment: Geopolitical and competitive risks remain a major overhang. Reports of a Taiwan detention involving an NVIDIA employee in a Super Micro China-export investigation, along with faster Chinese AI development, are renewing concerns about export controls and market access. Taiwan detains Nvidia employee in Super Micro probe
• Negative Sentiment: Market commentary also points to concentrated insider selling: reported NVIDIA insiders made no open-market purchases and 69 sales over the past six months. Although transactions may be scheduled, the imbalance can weigh on sentiment when valuation expectations are high.
• Negative Sentiment: Broad semiconductor selling and skepticism about AI spending have left NVIDIA below the psychologically important $200 level and below its 50-day moving average, signaling cautious short-term momentum despite strong underlying earnings growth.

Insider Activity at NVIDIA

In related news, Director Stephen C. Neal sold 15,500 shares of the company's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the sale, the director owned 116,135 shares in the company, valued at approximately $25,053,803.55. This represents a 11.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director John Dabiri sold 625 shares of the 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 transaction, the director directly owned 14,163 shares of the company's stock, valued at $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. Over the last quarter, insiders have sold 1,901,125 shares of company stock valued at $410,583,015. 3.94% of the stock is owned by insiders.

Analysts Set New Price Targets

Several analysts recently commented on the company. Jefferies Financial Group reaffirmed a "buy" rating and set a $300.00 price objective (up from $275.00) on shares of NVIDIA in a research note on Thursday, May 21st. DZ Bank reissued a "buy" rating on shares of NVIDIA in a research note on Thursday, May 21st. Wall Street Zen downgraded NVIDIA from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 4th. Craig Hallum raised their price target on NVIDIA from $245.00 to $275.00 and gave the stock a "buy" rating in a research report on Thursday, May 21st. Finally, JPMorgan Chase & Co. lifted their price objective on NVIDIA from $265.00 to $280.00 and gave the company an "overweight" rating in a report on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, NVIDIA presently has an average rating of "Buy" and a consensus price target of $304.26.

NVIDIA Company 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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