Wedbush Securities Inc. Lowers Holdings in NVIDIA Corporation $NVDA

Key Points

• Wedbush Securities reduced its NVIDIA position by 0.7%, selling 6,414 shares and retaining 926,896 shares valued at approximately $185.5 million. NVIDIA remains Wedbush’s third-largest holding and represents 4.8% of its portfolio.
• NVIDIA reported quarterly earnings and revenue above analyst expectations, with revenue up 105.9% year over year. The company also authorized a $150 billion share-repurchase plan and declared a $0.25 quarterly dividend.
• Analyst sentiment remains strongly bullish, with NVIDIA carrying an average “Buy” rating and a $320.71 consensus price target, though insider selling, export restrictions, chip-financing concerns and potential competition from internally designed chips remain risks.

Wedbush Securities Inc. decreased its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 0.7% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 926,896 shares of the computer hardware maker's stock after selling 6,414 shares during the period. NVIDIA comprises 4.8% of Wedbush Securities Inc.'s portfolio, making the stock its 3rd biggest holding. Wedbush Securities Inc.'s holdings in NVIDIA were worth $185,463,000 as of its most recent SEC filing.

Several other large investors also recently modified their holdings of the stock. Bank of America Corp DE grew its holdings in NVIDIA by 2.2% during the 2nd quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker's stock worth $39,090,956,000 after acquiring an additional 4,165,875 shares during the last quarter. Invesco Ltd. increased its holdings in NVIDIA by 0.3% in the fourth quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker's stock valued at $26,714,167,000 after purchasing an additional 446,178 shares during the last quarter. J. Stern & Co. LLP raised its position in shares of NVIDIA by 13,709.1% in the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker's stock valued at $23,454,297,000 after acquiring an additional 124,849,603 shares during the period. Amundi boosted its position in shares of NVIDIA by 10.4% during the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock worth $23,329,141,000 after purchasing an additional 12,575,177 shares in the last quarter. Finally, Deutsche Bank AG grew its stake in NVIDIA by 2.3% in the second quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker's stock valued at $18,399,108,000 after acquiring an additional 2,045,101 shares during the period. 65.27% of the stock is currently owned by institutional investors.

NVIDIA Trading Up 1.3%

NVDA stock opened at $233.95 on Friday. NVIDIA Corporation has a one year low of $164.27 and a one year high of $237.88. The stock has a market cap of $5.64 trillion, a price-to-earnings ratio of 29.58, a price-to-earnings-growth ratio of 1.78 and a beta of 2.22. The company has a fifty day moving average price of $218.74 and a two-hundred day moving average price of $207.48. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85.

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

NVIDIA Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were given a dividend of $0.25 per share. The ex-dividend date was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. NVIDIA's payout ratio is currently 12.64%.

NVIDIA declared that its board has authorized a share buyback plan on Monday, September 28th that authorizes the company to buyback $150.00 billion in shares. This buyback authorization authorizes the computer hardware maker to buy up to 2.8% of its shares through open market purchases. Shares buyback plans are often a sign that the company's leadership believes its shares are undervalued.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Morgan Stanley named NVIDIA its top semiconductor pick, maintaining an Overweight rating and setting a $300 price target. The firm believes NVIDIA’s software ecosystem, scale and positioning across AI infrastructure trends give it a durable competitive moat. Morgan Stanley names NVIDIA a top pick
• Positive Sentiment: NVIDIA’s recently announced $150 billion buyback authorization lifts total remaining repurchase capacity to approximately $235 billion. Investors view the plan as a sign of management confidence and a potential source of per-share earnings support. NVIDIA buyback analysis
• Positive Sentiment: Analysts continue to raise expectations for hyperscaler spending, with Barclays estimating NVIDIA could generate $401 billion in hyperscaler revenue in 2027. CoreWeave’s launch of the Vera Rubin platform and additional enterprise customers also supports demand for NVIDIA’s next-generation systems. Barclays hyperscaler revenue estimate
• Neutral Sentiment: The broader semiconductor and technology complex is attracting buying interest as AI investment remains a major market leadership theme. However, NVIDIA’s valuation and substantial market concentration leave the stock sensitive to interest rates, economic data and shifts in institutional positioning.
• Negative Sentiment: Investors are monitoring reports that Amazon may move roughly $8 billion of NVIDIA chips off its balance sheet through leasing or financing structures. While this could improve customer flexibility, it adds scrutiny around AI infrastructure financing and so-called circular transactions. Amazon NVIDIA chip balance-sheet report
• Negative Sentiment: Export-control concerns remain a headline risk after prosecutors alleged a California man helped smuggle approximately $300 million of NVIDIA chips to China. Separately, Michael Burry warned that GPU depreciation could undermine the economics of the AI infrastructure boom, while Alphabet’s growing use of internally designed chips represents a longer-term competitive threat. NVIDIA chip smuggling prosecution

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the stock. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $350.00 price objective on shares of NVIDIA in a research report on Thursday. BMO Capital Markets set a $340.00 price target on NVIDIA and gave the company an "outperform" rating in a report on Thursday, August 20th. Melius Research set a $420.00 price objective on NVIDIA in a report on Thursday, August 27th. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of NVIDIA in a research note on Monday, August 31st. Finally, Royal Bank Of Canada upped their price target on NVIDIA from $300.00 to $330.00 and gave the stock an "outperform" rating in a research report on Thursday, August 27th. Four research analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, NVIDIA has an average rating of "Buy" and an average price target of $320.71.

Insider Transactions at NVIDIA

In other NVIDIA news, CFO Colette Kress sold 34,918 shares of NVIDIA stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the completion of the transaction, the chief financial officer owned 765,103 shares in the company, valued at approximately $167,595,812.15. The trade was a 4.36% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the company's stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the completion of the sale, the director owned 2,336,531 shares of the company's stock, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Company insiders own 3.94% of the company's stock.

NVIDIA Profile

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company's products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

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