NVIDIA (NASDAQ:NVDA) Trading Up 1.6% – Still a Buy?

NVIDIA Corporation (NASDAQ:NVDA) shares were up 1.6% during mid-day trading on Wednesday . The company traded as high as $192.35 and last traded at $191.52. Approximately 145,907,263 shares traded hands during mid-day trading, a decline of 10% from the average daily volume of 162,311,438 shares. The stock had previously closed at $188.52.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: China reportedly approved imports of NVIDIA’s H200 AI chips, which eases a major sales headwind and boosts near-term revenue prospects in a large market. Read More.
• Positive Sentiment: Wall Street remains overwhelmingly bullish: numerous buy/outperform ratings and a median analyst price target around $250 support upside expectations and help underpin the rally. Read More.
• Positive Sentiment: Institutional buying continues — DekaBank disclosed adding ~1.0M NVDA shares in its 13F filing, part of broad institutional flows that have buoyed the name. Continued fund demand is a technical tailwind. Read More.
• Positive Sentiment: NVIDIA’s $2B investment in CoreWeave is being framed as strategic validation of its AI-infrastructure strategy; high-profile bullish commentary (e.g., Jim Cramer) is supporting sentiment. Read More.
• Neutral Sentiment: Analysts and investors are focused on NVIDIA’s upcoming quarterly report (Feb. 25) — markets are trading in anticipation and that print could materially change the near-term narrative. Read More.
• Neutral Sentiment: ETF and index concentrations (e.g., large weightings in growth ETFs) mean flows into/away from passive funds can amplify moves in NVDA — structural demand remains important. Read More.
• Negative Sentiment: Rising use of leveraged financing tied to GPU hardware (“GPU debt”) raises systemic risk for customers and the ecosystem if hardware values weaken — this could slow upgrade cycles and pressure demand. Read More.
• Negative Sentiment: Competition and vertical moves by hyperscalers (e.g., Microsoft’s new Maia 200 inference chip and other Mag?7 chip initiatives) keep margin and share dynamics under watch — investors will recalibrate if cloud customers shift workloads away from GPUs. Read More.
• Negative Sentiment: Insider selling has been heavy (many disclosed sales), which some investors view as a signal to monitor; while insider sales can be routine diversification, the volume is notable. Read More.

Analyst Ratings Changes

Several research analysts have recently issued reports on NVDA shares. William Blair reiterated an “outperform” rating on shares of NVIDIA in a report on Tuesday, January 6th. Argus reiterated a “buy” rating and issued a $220.00 price target on shares of NVIDIA in a research report on Thursday, November 20th. UBS Group restated a “buy” rating on shares of NVIDIA in a research report on Tuesday, January 6th. Citic Securities boosted their target price on shares of NVIDIA from $237.00 to $242.00 and gave the stock a “buy” rating in a report on Thursday, November 20th. Finally, Cantor Fitzgerald reissued an “overweight” rating and set a $300.00 target price on shares of NVIDIA in a research note on Thursday, November 20th. Four investment analysts have rated the stock with a Strong Buy rating, forty-seven have given a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Buy” and a consensus target price of $263.41.

NVIDIA Price Performance

The company has a quick ratio of 3.71, a current ratio of 4.47 and a debt-to-equity ratio of 0.06. The stock’s 50 day moving average price is $183.52 and its two-hundred day moving average price is $182.14. The firm has a market capitalization of $4.65 trillion, a price-to-earnings ratio of 47.52, a P/E/G ratio of 0.91 and a beta of 2.31.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings results on Wednesday, November 19th. The computer hardware maker reported $1.30 earnings per share for the quarter, topping analysts’ consensus estimates of $1.23 by $0.07. NVIDIA had a return on equity of 99.24% and a net margin of 53.01%.The company had revenue of $57.01 billion during the quarter, compared to the consensus estimate of $54.66 billion. During the same period last year, the business earned $0.81 EPS. The business’s quarterly revenue was up 62.5% on a year-over-year basis. Analysts anticipate that NVIDIA Corporation will post 2.77 EPS for the current fiscal year.

NVIDIA Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, December 26th. Stockholders of record on Thursday, December 4th were issued a dividend of $0.01 per share. The ex-dividend date was Thursday, December 4th. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.0%. NVIDIA’s dividend payout ratio (DPR) is currently 0.99%.

Insider Transactions at NVIDIA

In other NVIDIA news, EVP Debora Shoquist sold 69,840 shares of the firm’s stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $177.85, for a total transaction of $12,421,044.00. Following the transaction, the executive vice president directly owned 1,424,603 shares in the company, valued at $253,365,643.55. This trade represents a 4.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Ajay K. Puri sold 200,000 shares of the firm’s stock in a transaction that occurred on Wednesday, January 21st. The shares were sold at an average price of $180.04, for a total value of $36,008,000.00. Following the completion of the transaction, the executive vice president directly owned 3,618,547 shares in the company, valued at $651,483,201.88. The trade was a 5.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,611,474 shares of company stock valued at $293,285,232 in the last three months. 4.17% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NVIDIA

A number of institutional investors have recently made changes to their positions in the business. Brighton Jones LLC increased its holdings in NVIDIA by 12.4% in the 4th quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker’s stock valued at $43,631,000 after buying an additional 35,815 shares during the period. Bank Pictet & Cie Europe AG raised its position in NVIDIA by 1.0% in the fourth quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker’s stock worth $315,100,000 after purchasing an additional 22,929 shares in the last quarter. Highview Capital Management LLC DE raised its position in NVIDIA by 6.7% in the fourth quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker’s stock worth $7,842,000 after purchasing an additional 3,653 shares in the last quarter. Hudson Value Partners LLC lifted its stake in NVIDIA by 30.7% during the fourth quarter. Hudson Value Partners LLC now owns 50,658 shares of the computer hardware maker’s stock worth $6,805,000 after purchasing an additional 11,900 shares during the period. Finally, Wealth Group Ltd. boosted its holdings in NVIDIA by 15.7% during the first quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker’s stock valued at $715,000 after purchasing an additional 896 shares in the last quarter. 65.27% of the stock is currently owned by institutional investors.

About NVIDIA

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.