NVIDIA (NASDAQ:NVDA) Trading Up 2.5% – Still a Buy?

NVIDIA Corporation (NASDAQ:NVDA)’s stock price shot up 2.5% on Thursday . The company traded as high as $219.91 and last traded at $219.34. 92,301,833 shares changed hands during trading, a decline of 41% from the average session volume of 156,200,719 shares. The stock had previously closed at $213.90.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: CEO Jensen Huang said NVIDIA expects to sell roughly twice as many chips next year, reinforcing expectations that hyperscaler spending on AI data centers remains strong. The forecast includes demand for GPUs, CPUs, networking equipment and complete server racks. Nvidia Chip Sales Could Double Next Year, CEO Jensen Huang Says
• Positive Sentiment: Analysts and market commentators increasingly view NVIDIA as attractively valued relative to its growth. Its scale, diversified AI exposure, high profitability and lower forward valuation multiple give it an advantage over peers such as Credo, while some estimates suggest revenue growth could remain near 70% in fiscal 2028. Credo vs. NVIDIA After Earnings
• Positive Sentiment: AI infrastructure demand is expanding beyond processors into high-bandwidth memory and optical networking. NVIDIA has identified memory and silicon photonics as potential bottlenecks and has committed capital and purchase agreements involving suppliers such as Coherent and Lumentum, signaling sustained demand throughout its supply chain.
• Positive Sentiment: New ecosystem activity supports NVIDIA’s long-term growth narrative. Cloud partner CoreWeave is deploying next-generation Vera Rubin clusters, while NVIDIA-backed Nscale filed for a U.S. IPO. NVIDIA technology is also being used in autonomous trading systems, quantum-computing research and planned enterprise augmented-reality products.
• Neutral Sentiment: Speculative initiatives, including potential orbital data centers with SpaceX and NVIDIA’s quantum-computing software, could create future demand but are unlikely to materially affect near-term revenue.
• Negative Sentiment: Investors remain alert to competition from Huawei’s planned 2027 Ascend chips, possible AI-spending deceleration, rising memory costs that could pressure gross margins, and the effects of higher interest rates. The stock’s elevated valuation and dependence on continued hyperscaler capital expenditure also leave it sensitive to disappointing guidance.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on NVDA. Cantor Fitzgerald reissued an “overweight” rating and set a $350.00 target price on shares of NVIDIA in a report on Monday, August 24th. Truist Financial boosted their price objective on shares of NVIDIA from $307.00 to $346.00 and gave the company a “buy” rating in a research note on Thursday, August 27th. Weiss Ratings restated a “buy (b)” rating on shares of NVIDIA in a research report on Wednesday, July 8th. Wedbush upped their target price on NVIDIA from $330.00 to $345.00 and gave the stock an “outperform” rating in a research note on Thursday, August 27th. Finally, UBS Group set a $300.00 target price on shares of NVIDIA and gave the company a “buy” rating in a research note on Thursday, August 27th. Three investment analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Buy” and an average target price of $324.34.

NVIDIA Stock Up 1.3%

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 firm has a market capitalization of $5.36 trillion, a PE ratio of 28.10, a PEG ratio of 1.69 and a beta of 2.22. The stock has a 50 day simple moving average of $214.66 and a 200 day simple moving average of $204.29.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. The firm had revenue of $96.22 billion for the quarter, compared to analysts’ expectations of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company’s revenue for the quarter was up 105.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.05 earnings per share. As a group, sell-side analysts forecast that NVIDIA Corporation will post 9.25 earnings per share for the current year.

NVIDIA Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend is Thursday, September 10th. NVIDIA’s payout ratio is presently 12.64%.

Insider Buying and Selling

In other NVIDIA news, CFO Colette Kress sold 34,918 shares of NVIDIA stock in a transaction on 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 owned 765,103 shares in the company, valued at approximately $167,595,812.15. The trade was a 4.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy S. Teter sold 30,000 shares of NVIDIA stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $217.88, for a total value of $6,536,400.00. Following the completion of the transaction, the executive vice president directly owned 2,687,660 shares of the company’s stock, valued at approximately $585,587,360.80. This represents a 1.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,735,658 shares of company stock valued at $392,663,865 over the last ninety days. Company insiders own 3.94% of the company’s stock.

Institutional Trading of NVIDIA

Institutional investors and hedge funds have recently modified their holdings of the business. Montgomery Financial Services LLC purchased a new stake in NVIDIA in the second quarter worth approximately $28,000. Lifetime Wealth Management P.C. bought a new position in shares of NVIDIA in the 4th quarter worth approximately $26,000. Longview Financial Advisors Inc. bought a new stake in NVIDIA during the first quarter valued at approximately $27,000. Phillip James Consulting Co. bought a new position in NVIDIA in the first quarter worth approximately $40,000. Finally, Syntax Research Inc. grew its position in shares of NVIDIA by 62.5% during the 4th quarter. Syntax Research Inc. now owns 260 shares of the computer hardware maker’s stock valued at $49,000 after acquiring an additional 100 shares during the period. Institutional investors own 65.27% of the company’s stock.

NVIDIA Company Profile

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company’s offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.