NVIDIA (NASDAQ:NVDA) Shares Up 2.8% – Should You Buy?

NVIDIA Corporation (NASDAQ:NVDA)’s stock price traded up 2.8% on Friday. The company traded as high as $194.90 and last traded at $186.64. Approximately 178,352,554 shares traded hands during trading, an increase of 20% from the average session volume of 149,147,422 shares. The stock had previously closed at $181.60.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: ARK Invest’s Cathie Wood bought about $45.9 million of NVIDIA shares during the selloff, a notable vote of confidence that may support dip-buying sentiment. Article: Cathie Wood Is Buying the Dip in Nvidia
• Positive Sentiment: CEO Jensen Huang says the next-generation Vera Rubin platform could generate $40 billion in revenue per gigawatt, compared with $25 billion for Grace Blackwell. That points to potential for higher sales as customers move to the new platform. Article: Jensen Huang Says Nvidia’s Next-Gen Vera Rubin Chips Will Generate $40 Billion in Revenue per Gigawatt
• Positive Sentiment: Box expanded its NVIDIA partnership, adding NVIDIA technology to tools for searching company content and building AI workflows—evidence of demand for NVIDIA’s software and AI ecosystem beyond chips. Article: Box expands Nvidia partnership, unveils AI workflow builder
• Negative Sentiment: The dominant pressure is concern that AI infrastructure spending may slow or deliver weaker returns. Investors are also weighing high financing costs and whether political and regulatory changes could delay data-center construction, even though the articles cite no new NVIDIA results confirming a demand downturn. Article: AI stocks hammered by midterm shock as data center buildout becomes a ‘war of attrition’
• Negative Sentiment: China’s import restrictions may be limiting shipments: a report says NVIDIA chips are stockpiled in Hong Kong, while Chinese AI firms have sought access to advanced chips hosted in Europe. Export controls add uncertainty to potential sales. Article: Nvidia chips lie stockpiled in Hong Kong amid China’s import restrictions

Analysts Set New Price Targets

NVDA has been the subject of a number of recent research reports. Piper Sandler started coverage on shares of NVIDIA in a research note on Wednesday, September 9th. They set an “overweight” rating and a $300.00 price target for the company. Rosenblatt Securities reiterated a “buy” rating and set a $390.00 price objective on shares of NVIDIA in a report on Tuesday, September 29th. Sanford C. Bernstein reissued a “buy” rating on shares of NVIDIA in a research report on Monday, September 21st. Wall Street Zen lowered shares of NVIDIA from a “strong-buy” rating to a “buy” rating in a report on Saturday, October 24th. Finally, Melius Research cut their price target on NVIDIA from $420.00 to $315.00 and set a “buy” rating for the company in a research note on Monday. Five investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and one has given a Hold rating to the company. According to MarketBeat, NVIDIA presently has a consensus rating of “Buy” and an average target price of $318.85.

NVIDIA Price Performance

The company has a market capitalization of $4.50 trillion, a P/E ratio of 23.60, a price-to-earnings-growth ratio of 1.54 and a beta of 2.21. The business’s 50-day moving average is $220.63 and its two-hundred day moving average is $204.48. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. During the same period in the prior year, the firm posted $1.05 EPS. The firm’s quarterly revenue was up 105.9% compared to the same quarter last year. As a group, analysts predict that NVIDIA Corporation will post 9.30 earnings per share for the current year.

NVIDIA Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date was Thursday, September 10th. NVIDIA’s dividend payout ratio (DPR) is 12.64%.

NVIDIA declared that its board has authorized a stock buyback program on Monday, September 28th that allows the company to buy back $150 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Share repurchase programs are often a sign that the company’s board believes its stock is undervalued.

Insider Buying and Selling at NVIDIA

In other news, EVP Timothy S. Teter sold 30,460 shares of NVIDIA stock in a transaction on Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the sale, the executive vice president directly owned 2,687,660 shares in the company, valued at $598,810,648. The trade was a 1.12% decrease in their position. The transaction 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, CFO Colette Kress sold 34,918 shares of the business’s stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the completion of the transaction, the chief financial officer directly owned 765,103 shares in the company, valued at $167,595,812.15. This trade represents a 4.36% 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 1,766,118 shares of company stock worth $399,450,353 in the last quarter. 3.94% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On NVIDIA

Large investors have recently modified their holdings of the stock. Jupiter Topco LLC purchased a new position in NVIDIA during the second quarter valued at approximately $16,156,076,000. Van ECK Associates Corp increased its stake in shares of NVIDIA by 34.7% in the second quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker’s stock worth $15,176,771,000 after purchasing an additional 19,522,304 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of NVIDIA during the 3rd quarter valued at $3,921,459,000. State Street Corp raised its position 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 valued at $202,047,568,000 after purchasing an additional 15,897,836 shares during the period. Finally, Amundi lifted its stake in shares of NVIDIA by 10.4% during the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock valued at $23,329,141,000 after buying an additional 12,575,177 shares in the last quarter. 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.