NVIDIA (NASDAQ:NVDA) Shares Up 3.5% – Still a Buy?

Shares of NVIDIA Corporation (NASDAQ:NVDA) shot up 3.5% during trading on Monday . The stock traded as high as $212.71 and last traded at $212.45. 148,670,956 shares were traded during mid-day trading, a decline of 13% from the average session volume of 171,454,266 shares. The stock had previously closed at $205.19.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s bond sale drew strong demand, with reports that the company booked about $85 billion in orders for its jumbo debt offering. That suggests investors still see NVDA as a high-quality credit and gives the company more flexibility to fund its AI infrastructure buildout. Article Title
• Positive Sentiment: Several articles highlighted continued AI demand and upbeat commentary around NVIDIA’s growth, including strong revenue, expanding margins, and analyst views that the stock still looks attractive relative to peers. Article Title
• Positive Sentiment: Recent partnerships and ecosystem wins, including HPE’s AI Factory expansion with NVIDIA and other data-center related deals, reinforce NVDA’s central role in AI infrastructure. Article Title
• Neutral Sentiment: NVIDIA executives, including Jensen Huang, continued to promote AI as a long-term driver for U.S. manufacturing and jobs, but these comments were mostly thematic and did not include a new financial catalyst. Article Title
• Negative Sentiment: Multiple reports warned that NVIDIA could face an AI funding squeeze as customers and infrastructure partners rely more heavily on debt and become more disciplined about capital spending. That concern is weighing on sentiment across AI stocks, including NVDA. Article Title
• Negative Sentiment: Short-seller Jim Chanos’ comparison of the AI buildout to the dot-com era added to worries that the current AI capex boom could eventually slow or disappoint, pressuring sentiment on NVIDIA and peers. Article Title
• Negative Sentiment: There were also repeated headlines about NVIDIA being “under pressure” and lagging some semiconductor peers, reflecting investor concern that the stock may be pausing after a huge run and facing valuation scrutiny. Article Title

Analyst Upgrades and Downgrades

Several research firms recently commented on NVDA. Stifel Nicolaus set a $282.00 price target on shares of NVIDIA and gave the company a “buy” rating in a research report on Thursday, May 21st. Weiss Ratings reiterated a “buy (b)” rating on shares of NVIDIA in a research report on Friday, April 10th. Robert W. Baird set a $500.00 price target on shares of NVIDIA and gave the company an “outperform” rating in a research report on Thursday, May 21st. China Renaissance assumed coverage on shares of NVIDIA in a research note on Friday, June 5th. They issued a “buy” rating and a $319.00 price objective on the stock. Finally, Wedbush boosted their price objective on shares of NVIDIA from $300.00 to $330.00 and gave the company an “outperform” rating in a research note on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Buy” and a consensus price target of $305.67.

NVIDIA Stock Performance

The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. The firm has a market capitalization of $4.95 trillion, a price-to-earnings ratio of 31.34, a PEG ratio of 0.46 and a beta of 2.22. The stock’s 50 day moving average price is $208.68 and its two-hundred day moving average price is $192.01.

NVIDIA (NASDAQ:NVDA) last posted its quarterly 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 business had revenue of $81.62 billion for the quarter, compared to analysts’ expectations of $78.42 billion. During the same period in the prior year, the company posted $0.81 EPS. The business’s revenue for the quarter was up 85.2% on a year-over-year basis. On average, analysts forecast that NVIDIA Corporation will post 8.65 EPS for the current year.

NVIDIA Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Thursday, June 4th will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s dividend payout ratio is currently 15.31%.

NVIDIA announced that its Board of Directors has approved a share buyback plan on Wednesday, May 20th that allows the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s management believes its shares are undervalued.

Insider Transactions at NVIDIA

In related news, Director Mark A. Stevens sold 500,000 shares of the stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $219.83, for a total value of $109,915,000.00. Following the sale, the director directly owned 6,399,771 shares of the company’s stock, valued at approximately $1,406,861,658.93. This represents a 7.25% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director John Dabiri sold 625 shares of the stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the completion of the sale, the director directly owned 14,163 shares in the company, valued at approximately $3,030,882. The trade was a 4.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,319,457 shares of company stock worth $277,398,643 in the last 90 days. Insiders own 3.94% of the company’s stock.

Institutional Investors Weigh In On NVIDIA

Large investors have recently added to or reduced their stakes in the business. Lifetime Wealth Management P.C. acquired a new stake in shares of NVIDIA in the fourth quarter worth approximately $26,000. Longview Financial Advisors Inc. acquired a new stake in shares of NVIDIA in the first quarter worth approximately $27,000. Longfellow Investment Management Co. LLC boosted its position in shares of NVIDIA by 47.9% in the second 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 during the last quarter. Phillip James Consulting Co. acquired a new stake in shares of NVIDIA in the first quarter worth approximately $40,000. Finally, Inspire Investing LLC acquired a new stake in shares of NVIDIA in the fourth quarter worth approximately $44,000. 65.27% of the stock is owned by institutional investors and hedge funds.

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.