NVIDIA (NASDAQ:NVDA) Shares Up 2.9% – Here’s Why

Shares of NVIDIA Corporation (NASDAQ:NVDA) shot up 2.9% on Monday . The company traded as high as $208.74 and last traded at $206.64. 127,737,949 shares changed hands during mid-day trading, a decline of 22% from the average daily volume of 163,869,625 shares. The stock had previously closed at $200.75.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Accelerating capital spending by major cloud providers is supporting demand for NVIDIA’s latest liquid-cooled Blackwell systems. Investors remain optimistic that NVIDIA will continue benefiting from the AI data-center buildout ahead of its next earnings report. Nvidia stock climbs 3% as AI infrastructure demand boosts investor sentiment
• Positive Sentiment: NVIDIA’s history of exceeding analyst estimates, combined with favorable earnings-revision trends, has increased confidence in another quarterly beat. Its latest reported quarter included $81.6 billion of revenue, up 85% year over year, with data-center revenue up 92%. Will Nvidia Beat Estimates Again in Its Next Earnings Report?
• Positive Sentiment: Analysts and bullish commentators point to substantial Blackwell and Rubin demand, including reported bookings covering 2025 and 2026 and estimates that NVIDIA could surpass $1 trillion in cumulative chip sales through 2027. NVIDIA Has $500 Billion in AI Chip Bookings
• Positive Sentiment: NVIDIA remains the dominant supplier to hyperscalers, with Alphabet and Amazon’s results highlighting the large amounts they are spending on NVIDIA hardware. This reinforces near-term revenue visibility, although it also raises questions about customer returns on AI investments. The Nvidia Tax

Wall Street Analysts Forecast Growth

NVDA has been the subject of a number of research reports. Citigroup assumed coverage on shares of NVIDIA in a report on Wednesday, April 15th. They set a “buy” rating for the company. Weiss Ratings reissued a “buy (b)” rating on shares of NVIDIA in a research note on Wednesday, July 8th. Wall Street Zen lowered shares of NVIDIA from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 4th. DZ Bank reaffirmed a “buy” rating on shares of NVIDIA in a research note on Thursday, May 21st. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $325.00 price objective on shares of NVIDIA in a report on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Buy” and an average price target of $304.26.

NVIDIA Stock Up 2.9%

The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The company has a market capitalization of $5.00 trillion, a PE ratio of 31.64, a P/E/G ratio of 0.39 and a beta of 2.21. The business’s 50 day simple moving average is $205.41 and its 200 day simple moving average is $196.20.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating 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 firm had revenue of $81.61 billion for the quarter, compared to analysts’ expectations of $78.42 billion. During the same period in the prior year, the firm posted $0.81 earnings per share. The firm’s quarterly revenue was up 85.2% on a year-over-year basis. As a group, analysts anticipate that NVIDIA Corporation will post 8.79 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

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

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

Insider Buying and Selling at NVIDIA

In other news, Director Mark A. Stevens sold 885,000 shares of the business’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the sale, the director directly owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director John Dabiri sold 625 shares of the stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total transaction of $133,750.00. Following the transaction, the director directly owned 14,163 shares of the company’s stock, valued at $3,030,882. The trade was a 4.23% 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 1,901,125 shares of company stock valued at $410,583,015 over the last 90 days. 3.94% of the stock is owned by insiders.

Hedge Funds Weigh In On NVIDIA

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Lifetime Wealth Management P.C. acquired a new position in NVIDIA during the 4th quarter worth $26,000. Longview Financial Advisors Inc. acquired a new stake in NVIDIA in the first quarter valued at approximately $27,000. Longfellow Investment Management Co. LLC lifted its stake in NVIDIA by 47.9% in the second 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 during the last quarter. Phillip James Consulting Co. purchased a new position in NVIDIA in the first quarter worth approximately $40,000. Finally, Spurstone Advisory Services LLC acquired a new position in NVIDIA during the 2nd quarter worth approximately $40,000. 65.27% of the stock is currently owned by hedge funds and other 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.