NVIDIA (NASDAQ:NVDA) Stock Price Up 2.6% – Should You Buy?

NVIDIA Corporation (NASDAQ:NVDA) was up 2.6% on Thursday . The stock traded as high as $197.25 and last traded at $195.04. 127,240,506 shares changed hands during trading, a decline of 23% from the average daily volume of 164,272,547 shares. The stock had previously closed at $190.01.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Amazon supports demand outlook: Amazon raised its capital-expenditure forecast and downplayed competition between its custom AI chips and NVIDIA’s processors. The update reassured investors that hyperscaler spending remains a significant growth driver for NVIDIA. Nvidia Stock Rises. Thank Amazon.
• Positive Sentiment: Additional large-scale chip demand: Chinese AI company Moonshot reportedly has an Alibaba computing agreement involving approximately 20,000 NVIDIA chips. Although the arrangement is indirect, it highlights continued demand for NVIDIA’s accelerators across AI platforms. Moonshot has Nvidia chip cluster from Alibaba computing deal
• Positive Sentiment: Sector-wide investor support: Semiconductor ETFs attracted substantial new money as chip stocks rallied following strong technology earnings, providing a favorable backdrop for NVIDIA. Analysts also remain broadly bullish, with reported median price targets well above the current trading level and positive earnings-estimate revisions. Semiconductor ETFs Draw Cash This Week as Chip Stocks Rally
• Neutral Sentiment: Upcoming earnings catalyst: NVIDIA will report fiscal second-quarter 2027 results on August 26. Investors will focus on revenue growth, forward guidance and whether hyperscaler AI spending is translating into sustained orders. The company’s latest reported quarter showed $81.6 billion in revenue, up 85% year over year, and earnings above consensus.
• Negative Sentiment: Financing concerns remain: Investors continue to debate whether AI infrastructure expansion relies too heavily on leveraged or “circular” financing arrangements. Credit-market hedging activity and discussion of a potential financing backstop tied to an OpenAI data-center project could limit valuation expansion. NVIDIA Stock Is Still Up, But $250 Billion AI Risk Has Spooked The Debt Market
• Negative Sentiment: Bearish positioning and selling: Investor Michael Burry reportedly expanded bearish bets against NVIDIA, while recent insider and institutional selling adds a secondary source of caution. These transactions do not necessarily indicate deteriorating fundamentals but may contribute to volatility.

Wall Street Analysts Forecast Growth

NVDA has been the topic of a number of recent research reports. UBS Group upped their price target on shares of NVIDIA from $275.00 to $280.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Wall Street Zen cut NVIDIA from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 4th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $350.00 price objective on shares of NVIDIA in a research note on Thursday, May 21st. China Renaissance started coverage on shares of NVIDIA in a report on Friday, June 5th. They set a “buy” rating and a $319.00 price target on the stock. Finally, Zacks Research raised shares of NVIDIA from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 20th. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Buy” and an average target price of $304.26.

NVIDIA Stock Performance

The firm has a market capitalization of $4.86 trillion, a P/E ratio of 30.74, a P/E/G ratio of 0.38 and a beta of 2.21. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The firm has a 50-day moving average price of $205.41 and a two-hundred day moving average price of $196.12.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping the consensus estimate of $1.76 by $0.11. The company had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm’s revenue was up 85.2% compared to the same quarter last year. During the same quarter last year, the firm posted $0.81 EPS. On average, analysts forecast that NVIDIA Corporation will post 8.79 EPS for the current fiscal 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 paid a dividend of $0.25 per share. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend was Thursday, June 4th. NVIDIA’s payout ratio is presently 15.31%.

NVIDIA announced that its board has authorized a stock buyback plan on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in shares. This buyback authorization authorizes the computer hardware maker to buy up to 1.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its stock is undervalued.

Insider Activity at NVIDIA

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

Institutional Trading of NVIDIA

A number of hedge funds have recently added to or reduced their stakes in NVDA. Diversified Enterprises LLC lifted its holdings in NVIDIA by 44.2% in the fourth quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker’s stock valued at $23,798,000 after acquiring an additional 39,129 shares during the period. ASR Vermogensbeheer N.V. boosted its position in NVIDIA by 1.8% in the 4th quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker’s stock worth $591,086,000 after purchasing an additional 54,877 shares in the last quarter. Storen Legacy Partners LLC acquired a new stake in shares of NVIDIA during the 4th quarter worth approximately $1,350,000. Weaver Capital Management LLC increased its holdings in shares of NVIDIA by 5.5% during the 4th quarter. Weaver Capital Management LLC now owns 85,216 shares of the computer hardware maker’s stock valued at $15,893,000 after purchasing an additional 4,439 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its holdings in shares of NVIDIA by 3.6% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 26,652,420 shares of the computer hardware maker’s stock valued at $4,970,704,000 after purchasing an additional 936,506 shares in the last quarter. 65.27% of the stock is owned by hedge funds and other 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.