Institutional Investors Ignore NVIDIA's Recent Stock Decline: Long-Term Profits Remain Strong

Silicon Valley, California United States of America
Despite recent declines in NVIDIA's stock price, some Wall Street analysts still view NVIDIA as a strong buy.
Institutions own around 66% of NVIDIA's shares, with The Vanguard Group, BlackRock, and FMR LLC being the largest shareholders.
NVIDIA Corporation's (NVDA) stock has seen a one-year gain of 142% and is up almost 130% this year.
NVIDIA's top 25 shareholders hold a significant 44% of the company.
Institutional Investors Ignore NVIDIA's Recent Stock Decline: Long-Term Profits Remain Strong

In recent developments, institutional investors may choose to ignore NVIDIA Corporation's (NASDAQ:NVDA) recent decline in market capitalization value, as the company's long-term profits remain profitable. According to Yahoo Finance, around 66% of NVIDIA's shares are owned by institutions, with The Vanguard Group, Inc. being the largest shareholder with 8.7%, followed by BlackRock, Inc. owning 7.4% of common stock and FMR LLC holding about 4.4%. CEO Jen-Hsun Huang directly owns 3.5% of the total shares outstanding, and insiders collectively own US$109 billion worth of NVIDIA shares.

Despite a recent decline in value, NVIDIA's stock has seen a one-year gain of 142%. However, institutions hold a significant portion of the company's shares and their trading actions can greatly impact the stock price. Recently, insiders have been selling off their shares.

Despite NVIDIA's recent decline in market capitalization value, investors should not be overly concerned as long-term profits remain strong. The top 25 shareholders hold a significant 44% of the company, indicating that institutional investors still have confidence in NVIDIA's future growth and profitability.

In another report by The Motley Fool, NVIDIA's stock has seen a remarkable ninefold increase since the fourth quarter of 2022 and is up almost 130% this year. However, the stock has plunged around 17% in recent weeks. Despite this pullback, some Wall Street analysts still believe NVIDIA is a strong buy.

On the other hand, CNBC reports that NVIDIA could be on the verge of a massive technical sell-off, according to a chart analyst. The warning comes as NVIDIA's stock has seen significant volatility in recent weeks.

In summary, despite recent declines in NVIDIA's stock price, institutional investors may choose to ignore these declines as long-term profits remain strong. Additionally, some Wall Street analysts still view NVIDIA as a strong buy despite the recent pullback. However, there is a potential for a massive technical sell-off according to one chart analyst.


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Confidence

90%

Doubts
  • The article mentions that insiders have been selling off their shares, but it does not provide information on the volume or significance of these sales.
  • The article suggests that there is potential for a massive technical sell-off, but it does not provide any specific analysis or evidence to support this claim.

Sources

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

1 Major Reason Nvidia Stock Continues to Drop

The Motley Fool Jose Najarro Tuesday, 30 July 2024 13:48
  • Unique Points
    • Jose Najarro discusses Nvidia and other semiconductor stocks in a video
    • Randi Zuckerberg is a member of The Motley Fool’s board of directors
    • Jose Najarro has positions in Advanced Micro Devices, Meta Platforms, Microsoft, and Nvidia
    • The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Microsoft, and Nvidia
    • The Motley Fool recommends certain options involving Microsoft
  • Accuracy
    • Nvidia stock is dropping in the market
    • Nvidia could experience a significant technical sell-off
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Nvidia could be on the verge of a massive technical sell-off, chart analyst warns

CNBC News Jesse Pound Friday, 26 July 2024 17:30
  • Unique Points
    • Nvidia could experience a significant technical sell-off
    • Chart analyst has issued a warning
  • Accuracy
    • ]Nvidia could experience a significant technical sell-off[
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

96%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Nvidia Stock Plunges: Why Some Wall Street Analysts Think It's Still a No-Brainer Buy

The Motley Fool Keith Speights Tuesday, 30 July 2024 09:45
  • Unique Points
    • Nvidia's stock has skyrocketed more than ninefold since the fourth quarter of 2022.
    • Despite a recent pullback, some Wall Street analysts think Nvidia is still a buy.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (95%)
    The author expresses a positive outlook towards Nvidia's stock and the company's continued leadership in the AI chip market. He quotes several analysts who have reiterated their buy ratings for Nvidia and raised their price targets after recent events. The author also mentions that some analysts are less enthusiastic about Nvidia due to its high valuation, but he still believes the stock will move higher.
    • And they’re even more optimistic about the stock than before Nvidia’s pullback started.
      • Four analysts have reiterated buy ratings for Nvidia since its shares began to retreat on July 10, 2024, according to LSEG.
        • Ramsay believes that the demand for Nvidia’s chips is sustainable and predicts another strong quarterly update from the company in August.
          • ]Some analysts view Nvidia’s pullback as a great buying opportunity.[
          • Site Conflicts Of Interest (100%)
            None Found At Time Of Publication
          • Author Conflicts Of Interest (100%)
            None Found At Time Of Publication

          97%

          The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
          (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

          A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

          Institutional owners may ignore NVIDIA Corporation's (NASDAQ:NVDA) recent US$258b market cap decline as longer-term profits stay in the green

          Yahoo Finance editorial-team@simplywallst.com (Simply Tuesday, 30 July 2024 17:30
          • Unique Points
            • Institutions hold around 66% of NVIDIA’s shares
            • The Vanguard Group, Inc. is the largest shareholder with 8.7% of shares outstanding
            • BlackRock, Inc. is the second largest shareholder owning 7.4% of common stock
            • FMR LLC holds about 4.4% of NVIDIA’s company stock
            • CEO Jen-Hsun Huang directly holds 3.5% of the total shares outstanding
            • Insiders collectively own US$109b worth of shares in NVIDIA
          • Accuracy
            No Contradictions at Time Of Publication
          • Deception (100%)
            None Found At Time Of Publication
          • Fallacies (90%)
            The article contains an appeal to authority fallacy when it states 'Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.' This implies that because institutions pay more attention to companies in major indices, those companies are inherently better or more valuable. However, this is not necessarily true and does not provide a valid reason for why NVIDIA is a good investment.
            • Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
          • Bias (100%)
            None Found At Time Of Publication
          • Site Conflicts Of Interest (100%)
            None Found At Time Of Publication
          • Author Conflicts Of Interest (100%)
            None Found At Time Of Publication