NVIDIA (NASDAQ:NVDA) Trading Up 2.2% – What’s Next?

NVIDIA Corporation (NASDAQ:NVDA)’s stock price was up 2.2% during trading on Thursday . The stock traded as high as $205.66 and last traded at $204.87. Approximately 154,200,960 shares traded hands during trading, a decline of 10% from the average daily volume of 172,153,875 shares. The stock had previously closed at $200.42.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA is deepening its healthcare AI push by partnering with Abridge to develop a model for clinical conversations, expanding its reach beyond chips into high-value industry software and services. Nvidia Is Developing an AI Healthcare Model With Startup Abridge
• Positive Sentiment: NVIDIA is also involved in a $10 billion AI infrastructure venture with KKR, Vistra, and the Kuwait Investment Authority, highlighting continued large-scale investment in data centers that should support future GPU demand. KKR Launches $10 Billion AI Infrastructure Company With Nvidia, Vistra
• Positive Sentiment: Analyst commentary remains constructive, with firms like Wedbush and KeyBanc still arguing that NVIDIA is undervalued and has substantial upside as AI demand and Blackwell GPU momentum stay strong. Analyst Calls NVIDIA Undervalued, Sees Major Upside Ahead
• Positive Sentiment: Several reports say NVIDIA’s recent weakness may be a buying opportunity, pointing to continued strong AI revenue growth, robust cash flow, and investor confidence in its long-term position. Nvidia: The Pullback Is A Gift As AI Demand Goes Parabolic
• Neutral Sentiment: Coverage highlighting NVIDIA’s buybacks, dividends, and rising investment activity reinforces that the company is returning more capital while still funding growth initiatives, which is supportive but not a near-term catalyst by itself. NVIDIA’s Outlook Gains Momentum: Stock Price to Follow
• Negative Sentiment: Some articles warn that the broader AI trade is becoming more selective, with investors no longer rewarding every AI name and with concerns around valuation, margins, and hyperscaler in-house chip efforts pressuring sentiment. Nvidia’s Buybacks, Sky-High Margins, and TCO Claims
• Negative Sentiment: Broader semiconductor weakness and AI-stock selloff commentary are also weighing on NVIDIA, suggesting some of the recent pressure is tied to sector rotation rather than company-specific problems. Dow jumps 246 points as chip stocks rebound despite Iran tensions

Wall Street Analysts Forecast Growth

NVDA has been the subject of several research analyst reports. Itau BBA Securities restated a “market perform” rating on shares of NVIDIA in a research note on Thursday, February 26th. Argus boosted their target price on NVIDIA from $220.00 to $270.00 and gave the company a “buy” rating in a report on Thursday, May 21st. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $255.00 target price (up from $220.00) on shares of NVIDIA in a research report on Thursday, May 21st. Cantor Fitzgerald restated an “overweight” rating and set a $350.00 price target on shares of NVIDIA in a research note on Thursday, May 21st. Finally, Sanford C. Bernstein reaffirmed a “buy” rating on shares of NVIDIA in a research report on Monday. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, NVIDIA currently has an average rating of “Buy” and a consensus price target of $305.67.

NVIDIA Stock Up 2.2%

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’s 50 day moving average price is $205.64 and its two-hundred day moving average price is $191.06. The firm has a market cap of $4.96 trillion, a price-to-earnings ratio of 31.37, a P/E/G ratio of 0.47 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.76 by $0.11. The firm had revenue of $81.62 billion for the quarter, compared to analysts’ expectations of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The firm’s revenue for the quarter was up 85.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.81 EPS. As a group, sell-side analysts forecast that NVIDIA Corporation will post 8.61 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

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

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

Insider Activity

In related news, Director Aarti S. Shah sold 19,000 shares of NVIDIA stock in a transaction on Thursday, March 19th. The shares were sold at an average price of $176.71, for a total value of $3,357,490.00. Following the transaction, the director directly owned 36,007 shares in the company, valued at $6,362,796.97. This trade represents a 34.54% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Stephen C. Neal sold 15,500 shares of the business’s stock in a transaction on Wednesday, June 3rd. The shares were 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 in the company, valued at $25,053,803.55. This represents a 11.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 1,622,461 shares of company stock valued at $332,629,083. 3.94% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NVIDIA

Institutional investors and hedge funds have recently made changes to their positions in the stock. Lifetime Wealth Management P.C. acquired a new position in NVIDIA during the fourth quarter worth about $26,000. Longview Financial Advisors Inc. purchased a new stake in shares of NVIDIA during the 1st quarter worth approximately $27,000. Longfellow Investment Management Co. LLC boosted its stake in shares of NVIDIA by 47.9% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after acquiring an additional 67 shares in the last quarter. Phillip James Consulting Co. acquired a new stake in shares of NVIDIA in the 1st quarter worth approximately $40,000. Finally, Inspire Investing LLC acquired a new stake in shares of NVIDIA in the 4th quarter worth approximately $44,000. 65.27% of the stock is owned by institutional investors and hedge funds.

NVIDIA Company Profile

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.