NVIDIA (NASDAQ:NVDA) Shares Up 2.8% – Should You Buy?

NVIDIA Corporation (NASDAQ:NVDA)’s share price rose 2.8% during trading on Friday. The stock traded as high as $194.90 and last traded at $186.64. Approximately 178,352,554 shares changed hands during mid-day trading, an increase of 20% from the average session volume of 149,147,422 shares. The stock had previously closed at $181.60.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: ARK Invest’s Cathie Wood bought about $45.9 million of NVIDIA shares during the selloff, a notable vote of confidence that may support dip-buying sentiment. Article: Cathie Wood Is Buying the Dip in Nvidia
• Positive Sentiment: CEO Jensen Huang says the next-generation Vera Rubin platform could generate $40 billion in revenue per gigawatt, compared with $25 billion for Grace Blackwell. That points to potential for higher sales as customers move to the new platform. Article: Jensen Huang Says Nvidia’s Next-Gen Vera Rubin Chips Will Generate $40 Billion in Revenue per Gigawatt
• Positive Sentiment: Box expanded its NVIDIA partnership, adding NVIDIA technology to tools for searching company content and building AI workflows—evidence of demand for NVIDIA’s software and AI ecosystem beyond chips. Article: Box expands Nvidia partnership, unveils AI workflow builder
• Negative Sentiment: The dominant pressure is concern that AI infrastructure spending may slow or deliver weaker returns. Investors are also weighing high financing costs and whether political and regulatory changes could delay data-center construction, even though the articles cite no new NVIDIA results confirming a demand downturn. Article: AI stocks hammered by midterm shock as data center buildout becomes a ‘war of attrition’
• Negative Sentiment: China’s import restrictions may be limiting shipments: a report says NVIDIA chips are stockpiled in Hong Kong, while Chinese AI firms have sought access to advanced chips hosted in Europe. Export controls add uncertainty to potential sales. Article: Nvidia chips lie stockpiled in Hong Kong amid China’s import restrictions

Analyst Upgrades and Downgrades

Several analysts recently issued reports on NVDA shares. KGI Securities increased their target price on NVIDIA from $335.00 to $345.00 in a research report on Thursday, August 27th. Phillip Securities upped their price target on NVIDIA from $285.00 to $300.00 and gave the stock a “buy” rating in a research note on Monday, August 31st. Stifel Nicolaus set a $315.00 price objective on shares of NVIDIA in a report on Thursday, August 27th. China Renaissance lifted their price objective on shares of NVIDIA from $319.00 to $330.00 and gave the company a “buy” rating in a research report on Monday, August 31st. Finally, Oppenheimer set a $315.00 target price on shares of NVIDIA and gave the stock an “outperform” rating in a report on Thursday, August 27th. Five research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Buy” and a consensus price target of $318.85.

NVIDIA Stock Performance

The company has a market capitalization of $4.50 trillion, a P/E ratio of 23.60, a price-to-earnings-growth ratio of 1.54 and a beta of 2.21. The business has a 50 day moving average of $220.63 and a 200 day moving average of $204.48. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. The business had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The company’s revenue was up 105.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.05 EPS. On average, sell-side analysts predict that NVIDIA Corporation will post 9.30 earnings per share for the current year.

NVIDIA Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were issued a $0.25 dividend. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is 12.64%.

NVIDIA announced that its Board of Directors has authorized a stock repurchase program on Monday, September 28th that allows the company to buy back $150 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to repurchase up to 2.8% of its shares through open market purchases. Stock repurchase programs are generally an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity at NVIDIA

In other NVIDIA news, CFO Colette Kress sold 34,918 shares of NVIDIA stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total value of $7,648,787.90. Following the completion of the transaction, the chief financial officer directly owned 765,103 shares of the company’s stock, valued at $167,595,812.15. This trade represents a 4.36% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the company’s stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the sale, the director owned 2,336,531 shares in the company, valued at $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,766,118 shares of company stock valued at $399,450,353 over the last 90 days. 3.94% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On NVIDIA

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NVDA. State Street Corp boosted its stake in shares of NVIDIA by 1.6% during the second quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker’s stock valued at $202,047,568,000 after purchasing an additional 15,897,836 shares during the period. Bank of America Corp DE increased its stake in NVIDIA by 2.2% in the 2nd quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker’s stock worth $39,090,956,000 after buying an additional 4,165,875 shares during the period. Amundi increased its stake in NVIDIA by 10.4% in the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after buying an additional 12,575,177 shares during the period. Dimensional Fund Advisors LP lifted its holdings in NVIDIA by 0.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker’s stock valued at $16,479,126,000 after buying an additional 555,221 shares in the last quarter. Finally, Deutsche Bank AG boosted its position in NVIDIA by 2.3% in the 2nd quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker’s stock valued at $18,399,108,000 after buying an additional 2,045,101 shares during the period. 65.27% of the stock is currently owned by hedge funds and other institutional investors.

NVIDIA Company Profile

NVIDIA Corporation develops graphics processing units (GPUs), accelerated computing platforms and related software. Founded in 1993, the company first became widely known for GPUs used in PC gaming and professional graphics. Its technology now also supports artificial intelligence, scientific computing and other data-intensive applications.

NVIDIA’s offerings include GeForce products for gaming, data-center GPUs and systems for AI workloads, and networking products that connect computing infrastructure.