Is NVIDIA Corporation (NASDAQ:NVDA) a buy?
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Now that that’s out of the way, let’s examine the newest info for NVIDIA Corporation (NASDAQ:NVDA).
What does the smart money think about NVIDIA Corporation (NASDAQ:NVDA)?
In preparation for the third quarter, a total of 29 of the hedge funds we track held long positions in this stock, a change of 0% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were boosting their holdings substantially.
When using filings from the hedgies we track, Cliff Asness’s AQR Capital Management had the biggest position in NVIDIA Corporation (NASDAQ:NVDA), worth close to $67.8 million, comprising 0.2% of its total 13F portfolio. The second largest stake is held by Jeffrey Smith of Starboard Value LP, with a $61.8 million position; 4.3% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include Martin Whitman’s Third Avenue Management, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Jim Simons’s Renaissance Technologies.
Judging by the fact that NVIDIA Corporation (NASDAQ:NVDA) has faced declining interest from the top-tier hedge fund industry, we can see that there lies a certain “tier” of funds who were dropping their positions entirely in Q1. It’s worth mentioning that Scott Sinclair and Laurence Chang’s Cascabel Management cut the biggest investment of the 450+ funds we track, comprising close to $9.6 million in call options., and Israel Englander of Millennium Management was right behind this move, as the fund dropped about $6.4 million worth. These transactions are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
How are insiders trading NVIDIA Corporation (NASDAQ:NVDA)?
Insider buying made by high-level executives is best served when the company in question has seen transactions within the past 180 days. Over the latest half-year time frame, NVIDIA Corporation (NASDAQ:NVDA) has seen zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to NVIDIA Corporation (NASDAQ:NVDA). These stocks are ARM Holdings plc (ADR) (NASDAQ:ARMH), LSI Corp (NASDAQ:LSI), Altera Corporation (NASDAQ:ALTR), Linear Technology Corporation (NASDAQ:LLTC), and Microchip Technology Inc. (NASDAQ:MCHP). All of these stocks are in the semiconductor – specialized industry and their market caps are similar to NVDA’s market cap.