NVIDIA (NASDAQ:NVDA) Trading 2.6% Higher – Should You Buy?

NVIDIA Corporation (NASDAQ:NVDA)’s share price traded up 2.6% during mid-day trading on Tuesday . The stock traded as high as $213.06 and last traded at $211.94. Approximately 128,950,126 shares changed hands during mid-day trading, a decline of 21% from the average session volume of 163,633,406 shares. The stock had previously closed at $206.64.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: New Blackwell demand: Corvex signed a multi-year agreement for NVIDIA Blackwell GPU infrastructure, including Quantum-2 InfiniBand networking and dedicated high-speed storage. The rapid, liquid-cooled deployment provides another major proof point for demand for NVIDIA’s latest systems. Nvidia Stock Surges as Corvex Secures Multi-Year Blackwell GPU Deal
• Positive Sentiment: Large AI computing contract: Anthropic reportedly agreed to a six-year, $10 billion computing deal with Volta Infra, an NVIDIA-backed cloud infrastructure startup. The planned data center capacity is expected to use NVIDIA’s next-generation Vera Rubin chips, reinforcing long-term demand from leading AI model developers. Anthropic Inks $10 Billion Computing Deal
• Positive Sentiment: Demand remains exceptionally tight: Analysts and market commentators cited chip scarcity and an estimated demand-to-supply imbalance of roughly 12-to-1. Reports that NVIDIA GPUs are retaining their value support expectations for pricing power and continued data-center investment. NVIDIA Facing 12-to-1 Demand to Supply
• Positive Sentiment: AI ecosystem expansion: NVIDIA-led efforts to establish the Open Secure AI Alliance have grown to more than 120 companies, with the group developing shared standards for exchanging AI security findings. This could strengthen NVIDIA’s influence across the broader AI software ecosystem. NVIDIA-Led AI Alliance Shows Progress
• Neutral Sentiment: Export controls are creating a gray market in Southeast Asia, where proxy cloud providers reportedly help restricted customers access NVIDIA-based computing. The activity highlights inelastic demand but also increases regulatory and compliance risks. The AI Chip Blockade Is Creating a Shadow Market
• Negative Sentiment: Investor concerns remain over NVIDIA’s investments, guarantees and financing arrangements for AI infrastructure customers, which critics compare with circular deal-making. Short seller Michael Burry also disclosed additional NVIDIA put options, underscoring skepticism about valuation and the durability of the AI boom. Michael Burry’s Latest NVIDIA Bet

Analyst Upgrades and Downgrades

Several analysts have issued reports on the stock. Wells Fargo & Company restated an “overweight” rating and issued a $315.00 price target (up from $265.00) on shares of NVIDIA in a research report on Tuesday, May 12th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $350.00 price objective on shares of NVIDIA in a research report on Thursday, May 21st. Wall Street Zen cut shares of NVIDIA from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 4th. New Street Research decreased their target price on NVIDIA from $343.00 to $340.00 in a research report on Thursday, May 21st. Finally, Truist Financial boosted their price target on NVIDIA from $287.00 to $307.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Buy” and a consensus target price of $304.26.

NVIDIA Price Performance

The stock has a fifty day moving average of $205.24 and a two-hundred day moving average of $196.34. The stock has a market capitalization of $5.13 trillion, a price-to-earnings ratio of 32.46, a PEG ratio of 0.39 and a beta of 2.23. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04.

NVIDIA (NASDAQ:NVDA) last announced its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, topping analysts’ consensus estimates of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company had revenue of $81.61 billion during the quarter, compared to the consensus estimate of $78.42 billion. During the same period in the previous year, the firm posted $0.81 earnings per share. The company’s revenue was up 85.2% on a year-over-year basis. As a group, equities research analysts forecast that NVIDIA Corporation will post 8.79 earnings per share for the current year.

NVIDIA Increases Dividend

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

NVIDIA declared that its Board of Directors has initiated a share buyback program on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to buy up to 1.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its shares are undervalued.

Insider Activity at NVIDIA

In other news, Director John Dabiri sold 625 shares of the business’s stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the completion of the transaction, the director owned 14,163 shares of the company’s stock, valued at $3,030,882. The trade was a 4.23% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of the business’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total value 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 approximately $25,053,803.55. The trade was a 11.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 1,901,125 shares of company stock worth $410,583,015. 3.94% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NVIDIA

Several hedge funds have recently made changes to their positions in NVDA. Lifetime Wealth Management P.C. bought a new position in shares of NVIDIA in the 4th quarter valued at about $26,000. Longview Financial Advisors Inc. bought a new stake in NVIDIA during the first quarter worth about $27,000. Longfellow Investment Management Co. LLC boosted its position in NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after purchasing an additional 67 shares during the last quarter. Phillip James Consulting Co. acquired a new position in NVIDIA during the first quarter valued at approximately $40,000. Finally, Spurstone Advisory Services LLC bought a new position in NVIDIA in the second quarter valued at approximately $40,000. 65.27% of the stock is 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.