NVIDIA (NASDAQ:NVDA) Trading Up 4.1% – Time to Buy?

NVIDIA Corporation (NASDAQ:NVDA)’s share price rose 4.1% during trading on Tuesday . The stock traded as high as $212.55 and last traded at $211.80. Approximately 123,019,755 shares traded hands during mid-day trading, a decline of 27% from the average daily volume of 167,531,250 shares. The stock had previously closed at $203.53.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA unveiled new AI technology, including Cosmos 3 Edge, and expanded its physical AI ecosystem in Japan with partners across robotics, manufacturing, telecom, and research. Nvidia unveils new AI model and expands Japan’s physical AI ecosystem
• Positive Sentiment: Japan’s government, industrial leaders, and NVIDIA launched a major AI infrastructure initiative, including a Vera Rubin AI factory, which reinforces demand for NVIDIA’s next-generation platforms. Japan Government, Industrial Leaders and NVIDIA Launch the World’s First National AI Infrastructure
• Positive Sentiment: KeyCorp issued above-consensus long-term earnings estimates and kept a bullish stance on NVIDIA, suggesting Wall Street still sees substantial upside.
• Neutral Sentiment: Several articles highlighted speculation around China H200 chip shipments, but the reported volumes were described as very small, limiting the immediate financial impact. US official says shipments of H200 chips to China have begun
• Neutral Sentiment: Some commentary suggested NVIDIA’s shares may be near a trading ceiling after a strong run, and a few pieces flagged unusual put activity or valuation concerns, but these were mostly opinion-driven rather than company-specific fundamentals.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on NVDA shares. Morgan Stanley set a $288.00 target price on NVIDIA and gave the stock an “overweight” rating in a research report on Thursday, May 21st. Rothschild & Co Redburn upped their price target on NVIDIA from $280.00 to $300.00 and gave the stock a “buy” rating in a research note on Tuesday, May 26th. Wolfe Research reaffirmed an “outperform” rating and set a $275.00 price objective on shares of NVIDIA in a report on Thursday, May 21st. Wedbush lifted their price objective on shares of NVIDIA from $300.00 to $330.00 and gave the company an “outperform” rating in a research report on Thursday, May 21st. Finally, DZ Bank reissued a “buy” rating on shares of NVIDIA in a report on Thursday, May 21st. Two research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $304.26.

NVIDIA Stock Performance

The business has a 50 day moving average of $209.96 and a 200 day moving average of $194.93. The company has a market capitalization of $5.14 trillion, a P/E ratio of 32.54, a price-to-earnings-growth ratio of 0.47 and a beta of 2.21. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.76 by $0.11. The business had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company’s revenue was up 85.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.81 EPS. On average, sell-side analysts predict that NVIDIA Corporation will post 8.8 earnings per share for the current year.

NVIDIA Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were given a $0.25 dividend. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a yield of 0.5%. The ex-dividend date was Thursday, June 4th. NVIDIA’s dividend payout ratio (DPR) is presently 15.31%.

NVIDIA announced that its Board of Directors has authorized a stock repurchase program on Wednesday, May 20th that allows the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to reacquire up to 1.5% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its stock is undervalued.

Insider Activity at NVIDIA

In other NVIDIA news, Director John Dabiri sold 625 shares of the stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the completion of the transaction, the director owned 14,163 shares in the company, valued at $3,030,882. This trade represents a 4.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of NVIDIA stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the transaction, the director directly owned 116,135 shares of the company’s stock, valued at $25,053,803.55. The trade was a 11.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,901,125 shares of company stock valued at $410,583,015 over the last 90 days. 3.94% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. State Street Corp increased its position in NVIDIA by 1.2% during the fourth quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker’s stock valued at $184,911,111,000 after acquiring an additional 11,451,386 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of NVIDIA by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker’s stock worth $109,446,217,000 after purchasing an additional 3,383,441 shares during the period. Norges Bank bought a new position in NVIDIA during the 4th quarter valued at about $62,244,133,000. Bank of America Corp DE raised its position in NVIDIA by 2.1% in the 1st quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker’s stock worth $33,345,453,000 after purchasing an additional 4,019,505 shares during the period. Finally, Legal & General Group Plc raised its position in NVIDIA by 1.5% in the 3rd quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker’s stock worth $33,808,862,000 after purchasing an additional 2,609,560 shares during the period. Hedge funds and other institutional investors own 65.27% of the company’s stock.

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.