In a significant move, Sanders Morris Harris LLC increased its stake in NVIDIA Corporation by an impressive 479.4% during the third quarter of 2023. According to the firm’s most recent 13F filing with the Securities and Exchange Commission, the company now holds 186,855 shares of the renowned computer hardware manufacturer after acquiring an additional 154,604 shares in the quarter. This investment represents approximately 4.6% of Sanders Morris Harris LLC’s total holdings, making NVIDIA its third-largest investment, valued at $34.86 million at the end of the reporting period.
The trend of increasing investments in NVIDIA is echoed by other hedge funds. For instance, Graves Light Lenhart Wealth Inc. raised its holdings in NVIDIA by 22.1%, now owning 6,131 shares valued at $1.14 million after acquiring an additional 1,108 shares. Similarly, Thrive Wealth Management LLC and Wiser Wealth Management Inc. increased their stakes by 0.4% and 5.9% respectively. Thrive Wealth Management now holds 41,310 shares worth $7.71 million, while Wiser Wealth owns 11,388 shares valued at $2.13 million. Destiny Wealth Partners LLC also expanded its position by 25.5%, acquiring 103,097 shares valued at $19.24 million. Moreover, ARS Wealth Advisors Group LLC boosted its stake by 127.0%, resulting in ownership of 65,551 shares valued at $12.23 million.
Overall, hedge funds and other institutional investors now own approximately 65.27% of NVIDIA’s stock.
Market Sentiment and Analyst Ratings
Recent developments have influenced market sentiment regarding NVIDIA. Reports indicate that the U.S. government is reviewing policies that could allow exports of NVIDIA’s H200 AI chips to China, potentially expanding its revenue base significantly. Furthermore, U.S. antitrust agencies cleared NVIDIA’s investment in Intel, which alleviates regulatory concerns and supports strategic partnerships.
Analysts are increasingly optimistic about NVIDIA’s prospects. Several financial firms have raised their target prices; for example, Truist Financial increased its target from $255.00 to $275.00, while Needham & Company reaffirmed a buy rating with a target price of $240.00. Overall, five analysts have rated the stock with a strong buy, while forty-five have assigned a buy rating.
Conversely, some negative sentiment has emerged following the disclosure of insider selling by long-time director Harvey Jones, who sold 250,000 shares valued at approximately $44 million. While such sales can cause concern among investors, they are often part of diversification strategies by insiders.
Recent Performance and Financial Outlook
NVIDIA’s stock saw a 3.9% increase, opening at $180.99 on November 19, 2023. Over the past year, the stock has experienced a low of $86.62 and a high of $212.19. The company reported earnings of $1.30 per share for the quarter, surpassing analysts’ consensus estimate of $1.23 by $0.07. It achieved a net margin of 53.01% and a return on equity of 99.24%.
In terms of revenue, NVIDIA reported $57.01 billion for the quarter, significantly exceeding the expected $54.66 billion. This marks a remarkable 62.5% increase compared to the same quarter of the previous year. Analysts predict that NVIDIA Corporation will post an average of $2.77 earnings per share for the current year.
Additionally, NVIDIA declared a quarterly dividend of $0.01 per share, scheduled for payment on December 26, 2023. Stockholders of record on December 4, 2023 will be eligible for this dividend, reflecting a modest annualized payout.
Founded in 1993 and headquartered in Santa Clara, California, NVIDIA has evolved from a graphics chipmaker into a leader in accelerated computing technologies, providing products that serve various industries, including gaming, professional visualization, and AI. As it continues to expand its influence in the tech sector, the company’s strategic moves and market performance will remain closely monitored by investors and analysts alike.
