NVIDIA (NASDAQ:NVDA) Trading Up 3% – Still a Buy?

NVIDIA Corporation (NASDAQ:NVDA)’s share price was up 3% during mid-day trading on Thursday . The stock traded as high as $211.39 and last traded at $210.69. Approximately 238,018,252 shares changed hands during trading, an increase of 39% from the average session volume of 171,082,766 shares. The stock had previously closed at $204.65.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA was reported to have taken the No. 1 spot in data center Ethernet switching by revenue in Q1, highlighting growing demand for its broader networking and AI infrastructure products beyond GPUs. Nvidia takes No. 1 spot in data center ethernet switching by revenue in Q1: IDC
• Positive Sentiment: Several articles pointed to continued strength in NVIDIA’s AI ecosystem, including a new NVIDIA-linked ETF launch and HIVE Digital’s $220 million AI infrastructure contract that will deploy 2,304 NVIDIA Grace Blackwell GPUs, reinforcing ongoing enterprise demand for NVIDIA hardware. Exchange Traded Concepts Announces Launch of PurePlay Nvidia Ecosystem Picks & Shovels Index ETF (Nasdaq: NVPS) with PurePlay ETFs HIVE secures $220M AI infrastructure contract with Bell and Cohere
• Positive Sentiment: Jensen Huang’s upbeat comments about buying AI-related stocks on dips and broader media coverage of NVIDIA’s growth outside the U.S. added to the bullish narrative around long-term demand. Nvidia Stock Gains as the Chip Maker Looks to Growth Outside the U.S.
• Neutral Sentiment: News that Representative Cleo Fields disclosed holdings including NVIDIA stock is not material to NVIDIA’s fundamentals, but it keeps the name visible in recent political-trading coverage. Representative Cleo Fields has filed a new financial disclosure – here’s what we see
• Negative Sentiment: Amazon reportedly wants to sell its own AI chips more aggressively, a potential competitive threat that could pressure NVIDIA’s long-term dominance in cloud AI accelerators. Amazon hopes to challenge Nvidia more directly by selling its AI chips
• Negative Sentiment: Commentary about an AI funding squeeze and comparisons of today’s AI capital spending boom to past bubbles raised investor caution around the sustainability of NVIDIA-driven demand. Nvidia Stock Braced for AI Funding Squeeze Legendary Short Seller Jim Chanos Issues Dire Prediction: “We Have the Same Setup” As the Dot-Com Crash. Here’s How the AI Bull Market Ends

Analyst Ratings Changes

A number of equities research analysts have recently commented on NVDA shares. KeyCorp set a $310.00 target price on shares of NVIDIA and gave the company an “overweight” rating in a report on Thursday, May 21st. Wedbush boosted their price target on NVIDIA from $300.00 to $330.00 and gave the company an “outperform” rating in a research report on Thursday, May 21st. Stifel Nicolaus set a $282.00 price target on NVIDIA and gave the stock a “buy” rating in a research note on Thursday, May 21st. JPMorgan Chase & Co. increased their price target on NVIDIA from $265.00 to $280.00 and gave the stock an “overweight” rating in a report on Thursday, May 21st. Finally, Bank of America reiterated a “buy” rating and issued a $350.00 price objective (up from $320.00) on shares of NVIDIA in a research report on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Buy” and a consensus target price of $305.67.

NVIDIA Price Performance

The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The company has a 50-day simple moving average of $208.68 and a 200-day simple moving average of $192.01. The company has a market cap of $5.10 trillion, a price-to-earnings ratio of 32.26, a PEG ratio of 0.46 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating the consensus estimate 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 analysts’ expectations of $78.42 billion. During the same period last year, the firm earned $0.81 EPS. The company’s quarterly revenue was up 85.2% compared to the same quarter last year. As a group, research analysts predict that NVIDIA Corporation will post 8.65 earnings per share for the current year.

NVIDIA Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. The ex-dividend date of this dividend is Thursday, June 4th. NVIDIA’s dividend payout ratio is 15.31%.

NVIDIA announced that its board has approved a share repurchase plan on Wednesday, May 20th that allows the company to repurchase $80.00 billion in shares. This repurchase authorization allows the computer hardware maker to buy up to 1.5% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

Insider Activity at NVIDIA

In other news, Director Mark A. Stevens sold 500,000 shares of the company’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $219.83, for a total transaction of $109,915,000.00. Following the transaction, the director directly owned 6,399,771 shares of the company’s stock, valued at $1,406,861,658.93. This represents a 7.25% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director John Dabiri sold 625 shares of the stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the completion of the transaction, the director owned 14,163 shares of the company’s stock, valued at $3,030,882. This represents 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 a total of 1,300,457 shares of company stock valued at $274,041,153 over the last 90 days. Company insiders own 3.94% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. AMS Capital Ltda lifted its position in shares of NVIDIA by 5.0% during the 1st quarter. AMS Capital Ltda now owns 36,810 shares of the computer hardware maker’s stock valued at $6,420,000 after acquiring an additional 1,742 shares during the period. PVG Asset Management Corp grew its holdings in shares of NVIDIA by 143.4% in the 1st quarter. PVG Asset Management Corp now owns 19,150 shares of the computer hardware maker’s stock worth $3,340,000 after acquiring an additional 11,281 shares during the period. Steelhead Wealth Management LLC purchased a new position in NVIDIA in the 1st quarter valued at approximately $672,000. Carmignac Gestion increased its stake in NVIDIA by 25.3% in the 1st quarter. Carmignac Gestion now owns 4,566,444 shares of the computer hardware maker’s stock valued at $796,005,000 after purchasing an additional 921,338 shares in the last quarter. Finally, Lombard Odier Asset Management Europe Ltd boosted its position in NVIDIA by 8.2% during the first quarter. Lombard Odier Asset Management Europe Ltd now owns 443,753 shares of the computer hardware maker’s stock worth $77,391,000 after purchasing an additional 33,666 shares in the last quarter. 65.27% of the stock is 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.