NVIDIA (NASDAQ:NVDA) Shares Up 3% – Still a Buy?

NVIDIA Corporation (NASDAQ:NVDA)’s stock price shot up 3% during trading on Wednesday . The company traded as high as $225.10 and last traded at $224.09. Approximately 105,849,883 shares changed hands during trading, a decline of 35% from the average daily volume of 161,724,063 shares. The stock had previously closed at $217.50.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: AI financing plan supports demand visibility. NVIDIA says the financing platforms will help fund data centers and AI “factories,” potentially expanding the company’s addressable market while limiting the capital required on its own balance sheet. CEO Jensen Huang has described GPUs as revenue-generating, investable assets. Nvidia partners with Apollo, BlackRock, and others on $500B AI financing push
• Positive Sentiment: Customer demand appears strong across AI clouds. CoreWeave CEO Mike Intrator said even 2020-era NVIDIA GPUs are being contracted through 2029 at full pricing, countering concerns that older hardware will rapidly lose value and pressure margins. NVIDIA-backed Nebius also reported sharply higher AI-cloud revenue and said demand could fill much of its future capacity. CoreWeave CEO on long-term NVIDIA GPU demand
• Positive Sentiment: Additional product and ecosystem catalysts are emerging. IBM and Together AI signed a $240 million agreement for an NVIDIA-powered inference cluster, while NVIDIA is developing open-weight Nemotron models and advancing its Vera CPU platform. These efforts could reinforce its CUDA ecosystem and broaden demand beyond training-focused hyperscalers. IBM and Together AI NVIDIA-powered cluster deal
• Neutral Sentiment: Analysts remain broadly bullish ahead of late-August earnings. Wells Fargo reaffirmed an Overweight rating with a $315 target, and multiple analysts’ reported targets remain above the current trading level. However, the upcoming fiscal second-quarter report must validate the elevated expectations.
• Negative Sentiment: Financing risks remain a significant overhang. NVIDIA may provide residual-value support for as much as 25% of some transactions, raising concerns that the arrangement could resemble circular financing or expose the company to credit losses if GPU values fall. Rapid hardware depreciation, AI overbuilding, power shortages and possible low-cost Chinese competition could weaken collateral values. Nvidia circular financing concerns

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on NVDA. Zacks Research upgraded NVIDIA from a “hold” rating to a “strong-buy” rating in a research report on Monday, July 20th. Argus upped their price objective on shares of NVIDIA from $220.00 to $270.00 and gave the stock a “buy” rating in a research report on Thursday, May 21st. BNP Paribas Exane increased their price objective on shares of NVIDIA from $270.00 to $285.00 and gave the company an “outperform” rating in a report on Thursday, May 21st. Deutsche Bank Aktiengesellschaft reiterated 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. Finally, Robert W. Baird set a $500.00 target price on shares of NVIDIA and gave the stock an “outperform” rating in a research note on Thursday, May 21st. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus target price of $304.26.

NVIDIA Stock Up 3.0%

The stock has a market capitalization of $5.42 trillion, a price-to-earnings ratio of 34.32, a price-to-earnings-growth ratio of 0.42 and a beta of 2.23. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. The business’s 50-day moving average is $205.42 and its two-hundred day moving average is $197.78.

NVIDIA (NASDAQ:NVDA) last released its 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. The business had revenue of $81.61 billion for the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business’s revenue was up 85.2% on a year-over-year basis. During the same period last year, the company posted $0.81 EPS. Equities analysts anticipate that NVIDIA Corporation will post 8.79 EPS for the current year.

NVIDIA Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Thursday, June 4th were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend was Thursday, June 4th. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s dividend payout ratio is presently 15.31%.

NVIDIA announced that its board has approved a stock buyback plan on Wednesday, May 20th that permits the company to buyback $80.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to reacquire up to 1.5% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s board believes its shares are undervalued.

Insider Activity at NVIDIA

In other news, Director John Dabiri sold 625 shares of the company’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 of the company’s stock, valued at $3,030,882. This represents a 4.23% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of the company’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the transaction, the director directly owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 1,901,125 shares of company stock worth $410,583,015. Insiders own 3.94% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Norges Bank acquired a new position in NVIDIA during the 4th quarter worth about $62,244,133,000. J. Stern & Co. LLP grew its position in NVIDIA by 13,709.1% in the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock valued at $23,454,297,000 after acquiring an additional 124,849,603 shares in the last quarter. Cardano Risk Management B.V. increased its stake in NVIDIA by 896.4% during the fourth quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker’s stock worth $14,570,119,000 after purchasing an additional 70,283,539 shares during the period. Capital Research Global Investors lifted its position in shares of NVIDIA by 16.1% during the third quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker’s stock worth $30,855,564,000 after purchasing an additional 22,896,705 shares in the last quarter. Finally, Laurel Wealth Advisors LLC lifted its position in shares of NVIDIA by 15,496.1% during the second quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker’s stock worth $3,454,534,000 after purchasing an additional 21,725,326 shares in the last quarter. Institutional investors and hedge funds own 65.27% of the company’s stock.

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.