Morgan Stanley Reaffirms Overweight Rating for NVIDIA (NASDAQ:NVDA)

NVIDIA (NASDAQ:NVDA)‘s stock had its “overweight” rating reaffirmed by analysts at Morgan Stanley in a note issued to investors on Wednesday, Benzinga reports. They currently have a $300.00 target price on the computer hardware maker’s stock. Morgan Stanley‘s target price points to a potential upside of 77.59% from the stock’s current price.

Other research analysts have also recently issued research reports about the company. KeyCorp reaffirmed an “overweight” rating and set a $330.00 target price on shares of NVIDIA in a research note on Monday, August 24th. Phillip Securities boosted their price target on shares of NVIDIA from $285.00 to $300.00 and gave the stock a “buy” rating in a research report on Monday, August 31st. Piper Sandler started coverage on shares of NVIDIA in a report on Wednesday, September 9th. They issued an “overweight” rating and a $300.00 price target for the company. Zacks Research upgraded shares of NVIDIA from a “hold” rating to a “strong-buy” rating in a research report on Monday, September 21st. Finally, BNP Paribas Exane reaffirmed an “outperform” rating and issued a $345.00 price objective on shares of NVIDIA in a research note on Monday, October 5th. Five research analysts have rated the stock with a Strong Buy rating, forty-seven have issued a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average target price of $314.24.

NVIDIA Stock Performance

NVDA opened at $168.93 on Wednesday. The business has a 50 day moving average price of $217.99 and a two-hundred day moving average price of $204.42. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The company has a market capitalization of $4.07 trillion, a price-to-earnings ratio of 21.36, a price-to-earnings-growth ratio of 1.37 and a beta of 2.21. NVIDIA has a 1-year low of $164.27 and a 1-year high of $243.37.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The company had revenue of $96.22 billion for the quarter, compared to analysts’ expectations of $92.27 billion. During the same period last year, the firm earned $1.05 EPS. The firm’s revenue for the quarter was up 105.9% on a year-over-year basis. Research analysts predict that NVIDIA will post 9.30 EPS for the current fiscal year.

NVIDIA declared that its Board of Directors has approved a stock repurchase program on Monday, September 28th that permits the company to repurchase $150 billion in shares. This repurchase authorization permits the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its shares are undervalued.

Insiders Place Their Bets

In other news, Director Mark Stevens sold 622,239 shares of NVIDIA stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total value of $144,122,997.18. Following the transaction, the director directly owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Timothy Teter sold 30,460 shares of the business’s stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the sale, the executive vice president owned 2,687,660 shares in the company, valued at $598,810,648. This represents a 1.12% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,766,118 shares of company stock worth $399,450,353 over the last ninety days. 3.94% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NVIDIA

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. State Street Corp lifted its stake in NVIDIA by 1.6% in 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 in the last quarter. Bank of America Corp DE lifted its position 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 worth $39,090,956,000 after purchasing an additional 4,165,875 shares in the last quarter. Amundi lifted its position in shares of NVIDIA by 10.4% in the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after purchasing an additional 12,575,177 shares in the last quarter. Deutsche Bank AG boosted its holdings in shares of 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. Finally, Dimensional Fund Advisors LP boosted its holdings in shares of NVIDIA by 0.6% during the first quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker’s stock worth $16,479,126,000 after purchasing an additional 555,221 shares during the period. 65.27% of the stock is currently owned by hedge funds and other institutional investors.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: CoreWeave’s strong quarterly results and rally helped revive confidence that AI infrastructure spending remains robust, lifting NVIDIA and other chip stocks in premarket trading. Article
• Positive Sentiment: Some investors and analysts see the sell-off as an opportunity, pointing to NVIDIA’s growth prospects and upcoming earnings; one Seeking Alpha contributor upgraded the stock and said they were buying ahead of the report. Article
• Neutral Sentiment: NVIDIA is scheduled to report earnings on Nov. 17. Results and guidance could help investors judge whether underlying AI demand can offset the current governance and policy concerns. Article
• Negative Sentiment: The main overhang remains reports about Huang’s relationship with a woman suspected by U.S. intelligence of ties to China. NVIDIA’s board has commissioned an independent investigation, while the allegations have brought potential governance, leadership and national-security risks into focus. Article
• Negative Sentiment: Reports alleging that restricted NVIDIA chips reached Chinese firms have intensified export-control concerns. Any resulting regulatory or political response could constrain sales and add uncertainty; the reported claims have not been independently verified. Article
• Negative Sentiment: Analyst caution added pressure: Baird cut its rating to Neutral and lowered its price target from $500 to $200, citing risks including slower AI spending and Huang-related uncertainty. Shareholder class-action notices are another potential reputational and legal distraction. Article

About NVIDIA

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.