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NVIDIA Co. (NASDAQ:NVDA) is Gladstone Institutional Advisory LLC’s 2nd Largest Position

NVIDIA Co. (NASDAQ:NVDA) is Gladstone Institutional Advisory LLC’s 2nd Largest Position

  • 17.03.2025 07:33
  • etfdailynews.com
  • Keywords: NVIDIA

Gladstone Institutional Advisory LLC increased its stake in NVIDIA by 10.6%, making it their second-largest holding at $51 million. Analysts have a "Moderate Buy" rating with an average price target of $171.51, reflecting positive sentiment on the stock.

Nvidia Reports

Estimated market influence

Gladstone Institutional Advisory LLC

Positivesentiment_satisfied
Analyst rating: N/A

Lifted position by 10.6% in the fourth quarter, now owns 380,233 shares worth $51,061,000

Context

Analysis of NVIDIA Co. (NASDAQ:NVDA) Investment Insights and Market Implications

Key Facts and Data Points

  • Gladstone Institutional Advisory LLC's Position:

    • Increased holdings in NVIDIA by 10.6% in Q4.
    • Now owns 380,233 shares, worth $51,061,000.
    • NVIDIA represents 2.4% of the portfolio, making it the second-largest position.

  • Other Institutional Investors' Activity:

    • Geode Capital Management LLC increased holdings by 2.2%, now owning 546,079,492 shares worth $66,101,133,000.
    • UBS AM (a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC) increased holdings by 3.8%, now owning 180,403,789 shares worth $21,908,236,000.
    • Charles Schwab Investment Management Inc. increased holdings by 1.4%, now owning 146,069,090 shares worth $17,738,630,000.
    • Fisher Asset Management LLC increased holdings by 3.5%, now owning 96,720,707 shares worth $11,745,763,000.
    • Sumitomo Mitsui Trust Group Inc. increased holdings by 0.3%, now owning 63,615,639 shares worth $8,542,944,000.

  • Institutional Ownership:

    • 65.27% of NVIDIA's stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Sentiment

  • Analyst Ratings:

    • Average rating: "Moderate Buy".
    • Price target: $171.51.
    • Breakdown:
      • 4 hold ratings
      • 37 buy ratings
      • 2 strong buy ratings

  • Recent Analyst Adjustments:

    • HSBC lowered price target from $195 to $185, maintained "buy" rating.
    • JPMorgan Chase raised price target from $155 to $170, upgraded to "overweight".
    • Evercore ISI raised price target from $189 to $190, maintained "outperform".
    • Phillip Securities reaffirmed "accumulate", raised target to $160.
    • Wells Fargo raised price target from $165 to $185, upgraded to "overweight".

Stock Performance and Valuation

  • Stock Price:

    • Opened at $121.67 on Friday.
    • 50-day simple moving average: $129.26
    • 200-day simple moving average: $131.19

  • Market Capitalization: $2.97 trillion.

  • Financial Metrics:

    • PE ratio: 47.88
    • PEG ratio: 1.76
    • Beta: 1.77
    • 1-year low: $75.61
    • 1-year high: $153.13

Earnings and Dividend

  • Q4 Earnings:

    • EPS: $0.89 (vs. estimate of $0.84).
    • Revenue: $39.33 billion (vs. estimate of $38.16 billion).
    • Net margin: 55.69%
    • Return on equity: 114.83%

  • Dividend:

    • Announced quarterly dividend of $0.01 per share, annualized to $0.04.
    • Dividend yield: 0.03%
    • Dividend payout ratio (DPR): 1.36%

Insider Activity

  • Director Sale:

    • Sold 1,000,000 shares at an average price of $131.26.
    • Total transaction value: $131,260,000.
    • Post-sale ownership: ~$3.76 billion.

  • EVP Sale:

    • Sold 36,462 shares at an average price of $151.10.
    • Total transaction value: $5,509,408.
    • Post-sale ownership: ~$589.7 million.

  • Total Insider Sales in Last 90 Days: 1,039,125 shares worth $137,062,338.

  • Insider Ownership: 4.23%

Market and Industry Implications

Positive Indicators:

  • Strong Institutional Demand: Significant increases in holdings by major institutional investors (Geode Capital, UBS AM, Charles Schwab, Fisher Asset Management) indicate confidence in NVIDIA's long-term growth.
  • Positive Earnings Surprise: Q4 earnings beat expectations, with revenue exceeding forecasts and robust net margins (55.69%).
  • Analyst Sentiment: Majority of analysts rate the stock as "Buy" or "Outperform", with an average price target above current market price.

Potential Risks:

  • High Valuation: PE ratio of 47.88 and PEG ratio of 1.76 suggest high valuations, which could lead to volatility.
  • Insider Sales: Notable insider selling activity (over 1 million shares in the last 90 days) may signal concerns about overvaluation or diversification.

Competitive Landscape:

  • NVIDIA's dominance in GPU technology, particularly in gaming and AI, positions it as a key player in the semiconductor industry.
  • The company's expansion into metaverse and AI solutions (e.g., Omniverse platform) underscores its strategic focus on future growth areas.

Long-Term Implications:

  • Regulatory Risks: Potential regulatory scrutiny of semiconductor pricing and competition, especially in AI hardware, could impact margins.
  • Market Leadership: NVIDIA's ability to maintain its lead in GPU technology will be critical for sustained growth in gaming, data centers, and autonomous vehicles.

Strategic Considerations:

  • Dividend Policy: The introduction of a dividend (albeit small) may indicate a shift towards returning value to shareholders, though it remains minimal compared to buybacks.
  • Investment Thesis: Investors should consider NVIDIA's exposure to secular growth trends in AI, gaming, and cloud computing against the backdrop of high valuations and potential competition.

Conclusion

NVIDIA's strong financial performance, coupled with increased institutional holdings, underscores its position as a leader in the semiconductor and GPU market. However, investors must weigh the risks associated with high valuations, regulatory challenges, and competitive dynamics. The company's strategic focus on AI and metaverse technologies positions it for long-term growth, but short-term volatility may persist due to market sentiment and macroeconomic factors.