Farmers & Merchants Trust Co of Long Beach has increased its holdings in NVIDIA Corporation (NASDAQ: NVDA) by 20.6% during the third quarter of 2023. This adjustment follows the institutional investor’s recent filing with the Securities & Exchange Commission. Farmers & Merchants now owns 54,942 shares of the computer hardware giant, having acquired an additional 9,402 shares during this period.
NVIDIA represents 2.2% of Farmers & Merchants’ total investment portfolio, marking it as the firm’s 11th largest holding. The total value of its NVIDIA holdings stands at approximately $10,251,000. Other institutional investors have also been active, with Harbor Asset Planning Inc. purchasing a new stake valued at around $28,000 in the second quarter. Similarly, Winnow Wealth LLC acquired a stake worth $32,000, while Longfellow Investment Management Co. LLC raised its position in NVIDIA by 47.9%, now owning 207 shares worth about $33,000.
The trend of increasing investment is apparent, as institutional investors collectively own 65.27% of NVIDIA’s stock. This reflects growing confidence in the company’s future prospects amid a competitive technology landscape.
In recent insider activity, Executive Vice President Debora Shoquist sold 69,840 shares on December 12, 2023, for approximately $12,421,044. Following this transaction, she retained 1,424,603 shares, valued at around $253,365,643.55. Additionally, Director Harvey C. Jones sold 250,000 shares on December 15, 2023, generating a total of $44,332,500. Following this sale, he holds 6,933,280 shares, worth approximately $1,229,478,542.40. These sales represent a 4.67% and 3.48% decrease in their respective positions.
Analysts are closely monitoring NVIDIA, with numerous research firms expressing bullish sentiments. Raymond James Financial reaffirmed a “strong-buy” rating on January 6, 2024. In a report from November 3, Loop Capital raised its target price from $250.00 to $350.00, maintaining a “buy” rating. The consensus among analysts is overwhelmingly positive, with four rating it as a Strong Buy, forty-seven as Buy, and two as Hold, resulting in an average rating of “Buy” and a target price of approximately $263.98.
Recent news surrounding NVIDIA has also contributed to a positive outlook. Wolfe Research has elevated its price target to $275, reinforcing investor confidence. Furthermore, reports indicate that China has conditionally approved DeepSeek to purchase NVIDIA’s H200 chips, potentially unlocking a significant market. NVIDIA is also reportedly engaged in discussions with major players like Microsoft and Amazon to invest in OpenAI, which could enhance long-term demand for its products.
Despite the optimism, challenges persist. The New York Times warned that competition from Amazon and Google poses risks to NVIDIA’s dominance in the AI chip market. Additionally, macroeconomic factors and high valuation concerns are prompting caution among some investors.
NVIDIA’s stock performance remains robust. The share price opened at $191.13 on Friday, with a market capitalization of $4.64 trillion. The company recently reported earnings exceeding expectations, with a net revenue of $57.01 billion for the quarter, surpassing the consensus estimate of $54.66 billion. The firm achieved earnings per share of $1.30, exceeding analyst expectations of $1.23.
In addition to its strong financial performance, NVIDIA announced a quarterly dividend of $0.01 per share, reflecting a 0.0% yield. The dividend payout ratio stands at 0.99%.
Founded in 1993 and headquartered in Santa Clara, California, NVIDIA Corporation is a leading technology company known for its innovative graphics processing units (GPUs) and system-on-chip technologies. Co-founded by Jensen Huang, who currently serves as president and CEO, NVIDIA has expanded its offerings beyond gaming to include high-performance computing solutions across various industries.
As NVIDIA navigates this dynamic landscape, its strategic moves and investor confidence will be key indicators of its future growth trajectory.
