BetterWealth LLC has decreased its stake in NVIDIA Corporation (NASDAQ: NVDA) by an impressive 54.3% during the third quarter of 2023. According to the firm’s latest 13F filing with the Securities and Exchange Commission (SEC), BetterWealth now owns 8,649 shares of the leading computer hardware manufacturer after selling 10,265 shares in the quarter. NVIDIA represents approximately 0.4% of BetterWealth’s total holdings, making it the investor’s 24th largest position. The value of these shares stood at around $1,614,000 at the end of the quarter.
Several other institutional investors have also adjusted their positions in NVIDIA recently. Notably, Western Financial Corp CA established a new position valued at approximately $1,837,000 during the third quarter. Moss Adams Wealth Advisors LLC increased its holdings by 2.8%, acquiring an additional 2,088 shares for a total of 77,180 shares, valued at $14,401,000. Similarly, Saxony Capital Management LLC raised its stake by 0.3%, bringing its total to 31,038 shares valued at $5,791,000.
Capital Advisors Inc. OK made a more significant move, increasing its holdings in NVIDIA by 18.8%, now owning 1,441,604 shares worth $252,450,000 after acquiring an additional 227,910 shares. Currently, institutional investors and hedge funds collectively own 65.27% of NVIDIA’s stock.
Market Influences and Analyst Sentiment
Recent developments surrounding NVIDIA have generated varied sentiments in the market. Positive news includes a significant capital expenditure forecast from TSMC, which is projected to invest between $52 billion and $56 billion in 2026. This investment is expected to sustain demand for AI graphics processing units, underpinning NVIDIA’s long-term prospects in the data center market. Additionally, analysts from firms such as Jefferies and Mizuho have upgraded their ratings for NVIDIA, citing a strong roadmap and setting price targets as high as $275.
On the other hand, negative sentiments have emerged due to geopolitical and regulatory challenges. A recent U.S. proclamation imposes a 25% tariff on certain advanced computing chips, including NVIDIA’s H200, which could affect profit margins and price competitiveness in the Chinese market. Furthermore, reports indicate that China is drafting new purchase rules and may restrict H200 imports, adding uncertainty to demand in this crucial market.
Insider Trading and Stock Performance
Recent insider activity has raised eyebrows, particularly with significant share sales from key executives. Director Harvey C. Jones sold 250,000 shares on December 15, valued at approximately $44.3 million, while Director Mark A. Stevens sold 222,500 shares for about $40.1 million shortly thereafter. These transactions have contributed to a slight decline in investor confidence, despite the overall bullish outlook for NVIDIA.
As of the latest trading session, NVIDIA’s stock opened at $186.54, reflecting a 0.3% decline. The company boasts a market capitalization of $4.53 trillion, and its price-to-earnings (P/E) ratio stands at 46.29. Over the past year, NVIDIA shares have seen significant volatility, with a fifty-two week low of $86.62 and a high of $212.19.
In its most recent earnings report, NVIDIA announced a $1.30 earnings per share (EPS), exceeding analysts’ expectations of $1.23. The company reported a net margin of 53.01% and revenue of $57.01 billion, marking a year-over-year increase of 62.5%.
NVIDIA has also declared a modest quarterly dividend of $0.01 per share, paid on December 26, contributing to its overall financial strategy.
In summary, as BetterWealth LLC reduces its holdings in NVIDIA, the broader market remains engaged with mixed sentiments influenced by ongoing developments in technology, regulatory environments, and institutional investment strategies.
