NVIDIA (NASDAQ:NVDA) Shares Up 2.3% – Still a Buy?

NVIDIA Corporation (NASDAQ:NVDA)’s stock price shot up 2.3% during trading on Tuesday. The company traded as high as $209.14 and last traded at $206.69. Approximately 89,295,297 shares changed hands during trading, a decline of 40% from the average session volume of 148,288,281 shares. The stock had previously closed at $202.06.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Box expanded its partnership with NVIDIA, integrating NVIDIA’s Nemotron technology into new AI search and workflow tools—an example of continued enterprise demand for the company’s AI platform. Box expands Nvidia partnership
• Positive Sentiment: Ark Invest reportedly bought NVIDIA shares while selling AMD, and some commentators argue NVIDIA’s valuation looks more attractive after the recent retreat. These are supportive sentiment signals, not evidence that the broader concerns have eased. Cathie Wood buys Nvidia
• Neutral Sentiment: NVIDIA’s next major catalyst is its scheduled November 17 quarterly report. With investors focused on whether growth can exceed already-high expectations, the results and guidance may help determine the stock’s near-term direction. Nvidia investors need to watch Nov. 17
• Negative Sentiment: Election-related uncertainty is raising fears that data-center construction could slow or become more expensive. UBS estimates that delays could affect a substantial share of U.S. capacity planned for 2028 if construction pauses spread, threatening a key source of future chip demand. AI selloff and data-center concerns
• Negative Sentiment: Investors are also reassessing AI valuations and the scale and financing of infrastructure spending. The weakness has spread across chipmakers, and NVIDIA’s move below a widely watched technical support level may add to selling pressure. AI spending fears and financing risks
• Negative Sentiment: China-related headlines add geopolitical and compliance uncertainty: Chinese AI firm Moonshot has explored accessing Blackwell chips through European data centers, while House Republican leaders requested a closed-door briefing with CEO Jensen Huang following a report about an executive’s alleged links to Chinese intelligence. Moonshot seeks Nvidia chip access in Europe

Analyst Upgrades and Downgrades

NVDA has been the subject of several analyst reports. Raymond James Financial set a $515.00 price objective on shares of NVIDIA and gave the stock a “strong-buy” rating in a research note on Thursday, August 27th. BMO Capital Markets set a $340.00 target price on shares of NVIDIA and gave the stock an “outperform” rating in a research report on Thursday, August 20th. Benchmark reaffirmed a “buy” rating and set a $335.00 target price on shares of NVIDIA in a report on Thursday, August 27th. UBS Group reaffirmed a “buy” rating on shares of NVIDIA in a report on Friday, October 9th. Finally, Piper Sandler assumed coverage on NVIDIA in a research report on Wednesday, September 9th. They set an “overweight” rating and a $300.00 target price for the company. Five analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the company has an average rating of “Buy” and an average target price of $318.85.

NVIDIA Stock Performance

The stock has a fifty day simple moving average of $220.63 and a two-hundred day simple moving average of $204.48. The stock has a market cap of $4.38 trillion, a price-to-earnings ratio of 29.00, a P/E/G ratio of 1.54 and a beta of 2.21. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The company had revenue of $96.22 billion during the quarter, compared to analysts’ expectations of $92.27 billion. During the same quarter in the previous year, the firm earned $1.05 EPS. NVIDIA’s revenue was up 105.9% on a year-over-year basis. Analysts expect that NVIDIA Corporation will post 9.30 EPS for the current fiscal year.

NVIDIA Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Thursday, September 10th. NVIDIA’s dividend payout ratio (DPR) is presently 12.64%.

NVIDIA announced that its Board of Directors has initiated a stock repurchase plan on Monday, September 28th that authorizes the company to buy back $150 billion in shares. This buyback authorization authorizes the computer hardware maker to purchase up to 2.8% of its stock through open market purchases. Share buyback plans are often an indication that the company’s leadership believes its shares are undervalued.

Insider Activity at NVIDIA

In related news, CFO Colette Kress sold 34,918 shares of the company’s stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the completion of the transaction, the chief financial officer directly owned 765,103 shares in the company, valued at $167,595,812.15. This represents a 4.36% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of the stock in a transaction that occurred on 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 completion of the transaction, the director directly owned 2,336,531 shares of the company’s stock, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 1,766,118 shares of company stock valued at $399,450,353. 3.94% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. White Lighthouse Investment Management Inc. raised its stake in shares of NVIDIA by 0.9% in the third quarter. White Lighthouse Investment Management Inc. now owns 5,304 shares of the computer hardware maker’s stock valued at $1,211,000 after purchasing an additional 46 shares in the last quarter. Retirement Wealth Solutions LLC boosted its stake in NVIDIA by 1.2% during the second quarter. Retirement Wealth Solutions LLC now owns 4,121 shares of the computer hardware maker’s stock worth $825,000 after buying an additional 47 shares in the last quarter. LightSquare Wealth Management LLC boosted its stake in NVIDIA by 0.3% during the second quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker’s stock worth $3,741,000 after buying an additional 49 shares in the last quarter. CWS Financial Advisors LLC boosted its stake in NVIDIA by 3.1% during the third quarter. CWS Financial Advisors LLC now owns 1,653 shares of the computer hardware maker’s stock worth $377,000 after buying an additional 49 shares in the last quarter. Finally, Defender Capital LLC. increased its holdings in NVIDIA by 0.7% in the 2nd quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker’s stock valued at $1,507,000 after buying an additional 50 shares during the period. 65.27% of the stock is currently owned by institutional investors.

About NVIDIA

NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.

The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.