NVIDIA (NASDAQ:NVDA) Trading Up 3.4% – Still a Buy?

NVIDIA Corporation (NASDAQ:NVDA) shot up 3.4% during mid-day trading on Wednesday . The company traded as high as $222.22 and last traded at $219.22. 155,655,206 shares were traded during trading, a decline of 5% from the average daily volume of 163,495,578 shares. The stock had previously closed at $211.94.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Elon Musk said SpaceX plans to build its AI infrastructure exclusively around NVIDIA processors, including the Vera Rubin platform, and highlighted ambitions for large-scale computing capacity. The expected business and validation from a high-profile customer boosted NVIDIA’s growth outlook. Nvidia Stock Is on the Rise After Elon Musk Says SpaceX Will Exclusively Buy Its Chips
• Positive Sentiment: Analysts and investors are increasingly viewing NVIDIA as an integrated AI platform rather than solely a GPU supplier. Networking, software, enterprise AI and sovereign AI could diversify revenue and deepen customer switching costs. Nvidia: The Story Is Bigger Than GPUs Now
• Positive Sentiment: Reports that NVIDIA’s B200 systems are sold out, combined with a reported 12-to-1 demand-to-supply imbalance, reinforced expectations that AI infrastructure demand remains well above available supply. The Ultimate Bull Case for NVIDIA Is Here
• Neutral Sentiment: Recent 13F filings showed Allen Investment Management and DekaBank adding a combined roughly 1.3 million NVDA shares. However, institutional filings reflect holdings as of June 30 and are backward-looking; broader fund activity remains mixed. Allen Investment Management Adds NVIDIA Shares
• Negative Sentiment: Risks include potential U.S. restrictions on Chinese AI components, growing competition from custom chips and open-source alternatives, and concerns about NVIDIA’s investments and financial commitments to AI customers. Michael Burry also reiterated bearish bets on NVIDIA, while reported insider trading has consisted entirely of sales over the past six months. Broadcom, Marvell and NVIDIA Face Risk From China AI Component Ban

Analysts Set New Price Targets

Several brokerages recently issued reports on NVDA. HSBC restated a “buy” rating and issued a $325.00 target price (up from $295.00) on shares of NVIDIA in a report on Tuesday, May 19th. Argus boosted their price target on NVIDIA from $220.00 to $270.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Citic Securities raised their price objective on shares of NVIDIA from $242.00 to $315.00 and gave the stock a “buy” rating in a report on Friday, May 22nd. Tigress Financial reaffirmed a “strong-buy” rating and set a $425.00 target price (up from $360.00) on shares of NVIDIA in a report on Wednesday, May 27th. Finally, TD Cowen reissued a “buy” rating and set a $275.00 price objective (up from $235.00) on shares of NVIDIA in a research report on Friday, May 15th. Three investment 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, the stock currently has a consensus rating of “Buy” and a consensus price target of $304.26.

NVIDIA Trading Up 3.4%

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 stock’s 50 day moving average price is $205.18 and its 200-day moving average price is $196.55. The stock has a market capitalization of $5.31 trillion, a PE ratio of 33.57, a PEG ratio of 0.40 and a beta of 2.23.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The business had revenue of $81.61 billion during the quarter, compared to analyst estimates of $78.42 billion. During the same quarter in the prior year, the business posted $0.81 EPS. NVIDIA’s revenue for the quarter was up 85.2% compared to the same quarter last year. On average, sell-side analysts expect that NVIDIA Corporation will post 8.79 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were paid a dividend of $0.25 per share. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA’s dividend payout ratio is 15.31%.

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

Insider Buying and Selling

In other NVIDIA news, Director John Dabiri sold 625 shares of the company’s stock in a transaction that occurred 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 completion of the transaction, the director directly owned 14,163 shares in the company, valued at $3,030,882. This represents a 4.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the sale, the director directly owned 116,135 shares of the company’s stock, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 1,901,125 shares of company stock valued at $410,583,015. Corporate insiders own 3.94% of the company’s stock.

Institutional Trading of NVIDIA

A number of institutional investors and hedge funds have recently bought and sold shares of NVDA. Lifetime Wealth Management P.C. bought a new position in NVIDIA during the fourth quarter valued at approximately $26,000. Longview Financial Advisors Inc. bought a new stake in NVIDIA in the 1st quarter worth approximately $27,000. Longfellow Investment Management Co. LLC raised its holdings in shares of NVIDIA by 47.9% during the 2nd 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 in the last quarter. Phillip James Consulting Co. bought a new position in shares of NVIDIA during the 1st quarter valued at approximately $40,000. Finally, Spurstone Advisory Services LLC purchased a new position in shares of NVIDIA in the 2nd quarter worth $40,000. 65.27% of the stock is currently owned by institutional investors.

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.