NVIDIA Corporation (NASDAQ:NVDA – Get Free Report)’s stock price dropped 3.2% on Wednesday. The company traded as low as $199.68 and last traded at $200.13. 147,431,292 shares were traded during trading, a decline of 1% from the average session volume of 148,282,234 shares. The stock had previously closed at $206.69.
More NVIDIA News
Here are the key news stories impacting NVIDIA this week:
- Positive Sentiment: Some investors see the decline as a buying opportunity, citing NVIDIA’s strong AI-chip position and profitability. ARK Invest also reportedly added $45.9 million of NVDA shares during the sell-off. Nvidia Stock Rises on Dip-Buying: 3 Reasons to Be Optimistic
- Positive Sentiment: CEO Jensen Huang says the next-generation Vera Rubin platform could generate more revenue per gigawatt of data-center capacity than the current platform, supporting the case for continued growth. Jensen Huang Says Nvidia’s Next-Gen Vera Rubin Chips Will Generate $40 Billion in Revenue per Gigawatt
- Neutral Sentiment: NVIDIA’s upcoming Nov. 17 results are a key near-term catalyst: investors will look for evidence that demand and guidance can ease fears about AI spending and justify the stock’s recovery. Nvidia Investors Need to Be Paying Attention on Nov. 17
- Negative Sentiment: The rebound follows a steep sell-off that wiped roughly $450 billion from NVIDIA’s market value. Investors are worried that a Democratic-led Congress, data-center permitting or regulatory hurdles, high capital costs, and uncertain returns could delay infrastructure projects and weaken future chip demand. AI stocks hammered by midterm shock as data center buildout becomes a ‘war of attrition’
- Negative Sentiment: Reports that NVIDIA may be taking on greater exposure to financially strained “neocloud” customers raise concern that it could face risks beyond selling chips if those providers struggle to fund data centers. As neoclouds face a financial reckoning, Nvidia has to decide how far to go to help
Wall Street Analysts Forecast Growth
A number of equities analysts have recently weighed in on NVDA shares. Mizuho set a $315.00 price objective on shares of NVIDIA and gave the company an “outperform” rating in a research report on Thursday, August 27th. Rothschild & Co Redburn boosted their price target on NVIDIA from $300.00 to $325.00 in a research report on Thursday, August 27th. Royal Bank Of Canada increased their price target on NVIDIA from $300.00 to $330.00 and gave the company an “outperform” rating in a report on Thursday, August 27th. Weiss Ratings downgraded shares of NVIDIA from a “buy (b+)” rating to a “buy (b)” rating in a research report on Monday. Finally, BMO Capital Markets set a $340.00 price objective on shares of NVIDIA and gave the stock an “outperform” rating in a research note on Thursday, August 20th. Five equities research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Buy” and an average target price of $318.85.
Check Out Our Latest Analysis on NVIDIA
NVIDIA Stock Performance
The firm has a fifty day simple moving average of $219.80 and a 200 day simple moving average of $204.53. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. The stock has a market cap of $4.50 trillion, a price-to-earnings ratio of 23.60, a PEG ratio of 1.54 and a beta of 2.21.
NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The firm 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 company posted $1.05 EPS. NVIDIA’s revenue was up 105.9% on a year-over-year basis. As a group, sell-side analysts expect that NVIDIA Corporation will post 9.30 earnings per share for the current year.
NVIDIA Announces Dividend
The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were paid a $0.25 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA’s payout ratio is 12.64%.
NVIDIA declared that its board has approved a share buyback program on Monday, September 28th that authorizes the company to buy back $150 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s management believes its stock is undervalued.
Insiders Place Their Bets
In related news, Director Mark A. Stevens sold 622,239 shares of NVIDIA stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the sale, the director directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Colette Kress sold 34,918 shares of the business’s stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $219.05, for a total value of $7,648,787.90. Following the completion of the sale, the chief financial officer owned 765,103 shares in the company, valued at $167,595,812.15. This represents a 4.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 1,766,118 shares of company stock valued at $399,450,353. 3.94% of the stock is currently owned by corporate insiders.
Hedge Funds Weigh In On NVIDIA
Hedge funds and other institutional investors have recently modified their holdings of the stock. State Street Corp boosted its stake in shares of NVIDIA by 1.6% during the 2nd quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker’s stock worth $202,047,568,000 after acquiring an additional 15,897,836 shares during the period. Bank of America Corp DE boosted its stake in shares of NVIDIA by 2.2% in the second quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker’s stock valued at $39,090,956,000 after buying an additional 4,165,875 shares during the period. Amundi increased its stake in NVIDIA by 10.4% during the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after acquiring an additional 12,575,177 shares during the period. Dimensional Fund Advisors LP raised its stake in NVIDIA by 0.6% in the first quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker’s stock valued at $16,479,126,000 after purchasing an additional 555,221 shares in the last quarter. Finally, Deutsche Bank AG lifted its position in NVIDIA by 2.3% during the second quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker’s stock worth $18,399,108,000 after purchasing an additional 2,045,101 shares during the period. Hedge funds and other institutional investors own 65.27% of the company’s stock.
NVIDIA Company Profile
NVIDIA Corporation develops graphics processing units (GPUs), accelerated computing platforms and related software. Founded in 1993, the company first became widely known for GPUs used in PC gaming and professional graphics. Its technology now also supports artificial intelligence, scientific computing and other data-intensive applications.
NVIDIA’s offerings include GeForce products for gaming, data-center GPUs and systems for AI workloads, and networking products that connect computing infrastructure.
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