NVIDIA Holds Strong Despite Stake Reduction

NVIDIA Corporation (NASDAQ:NVDA) remains a top pick for analysts despite recent fluctuations in its stock price. Affiance Financial LLC, a significant institutional investor, has reduced its stake in NVIDIA by 35.9% to 9,386 shares worth $1,878,000 as of its latest SEC filing.

This move follows the company's quarterly earnings report on May 20th, where it beat analysts' consensus estimates with EPS of $1.87 and revenue of $81.61 billion. NVIDIA has been investing heavily in AI infrastructure, including a proposed investment in Cloverleaf Infrastructure, a developer of U.S. data-center power.

However, some investors are cautious about the company's exposure to capital-allocation and customer-financing risks through its investments in AI infrastructure. Additionally, reports suggest that Microsoft is preparing its own Maia 300 AI chip, which could potentially impact NVIDIA's market share.