Nvidia Stock Faces Earnings Test: Analysts Expect Another Blowout Report, But Some Investors Sold Off Shares Anyway
Synopsis
Jane Street, SoftBank, and JPMorgan are among the firms that sold sizable chunks of Nvidia stock in recent months.
- Nvidia will report its Q4 results after the markets close on Wednesday; analysts expect a 67% rise in sales.
- NVDA stock has been muted in recent months amid a broad selloff in tech shares.
- Stocktwits sentiment for NVDA remains ‘bearish,’ unchanged from last week.
Nvidia is widely expected to report another blowout quarter; however, some investors believe its momentum may already have peaked.
Investors Pare Stake
In the quarter ended December, top investment managers such as Jane Street, JPMorgan Chase, and Tiger Global Management trimmed their Nvidia stakes, according to data from Business Quant based on the companies’ latest 13-F filings.
Jane Street was the biggest seller, offloading nearly 53 million shares.
The percentage of Nvidia stock owned by institutions dropped to 65.6% as of December, from 66.7% as of September, according to Business Quant.
Nvidia shares have traded within a range since last September. The stock peaked in late October, helping Nvidia briefly surpass the $5 trillion market capitalization mark, and is now down 8% from that level.
Notably, SoftBank sold its entire Nvidia position, worth $5.8 billion, in November.
Like in all trades, where there are sellers, there are also buyers. Vanguard Group, BlackRock, and Norges Bank were the notable institutional investors that increased their stake in Nvidia.
Vanguard is currently the top institutional shareholder in Nvidia, which a $2.3 billion stake.
Earnings Expectations
Even as analysts expect an upbeat report from Nvidia, due after-market on Wednesday, retail investors remain on the sidelines. Read the full Stocktwits preview here.
Nvidia stock was up 0.6% in premarket trading on Tuesday; it is up 2.7% year to date, as of the last close.
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