NVIDIA (NASDAQ:NVDA) Shares Up 1.1% – Should You Buy?

Shares of NVIDIA Corporation (NASDAQ:NVDA) rose 1.1% during mid-day trading on Thursday. The stock traded as high as $232.29 and last traded at $230.86. 97,308,467 shares changed hands during trading, a decline of 37% from the average daily volume of 153,855,875 shares. The stock had previously closed at $228.38.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Morgan Stanley named NVIDIA its top semiconductor pick, maintaining an Overweight rating and setting a $300 price target. The firm believes NVIDIA’s software ecosystem, scale and positioning across AI infrastructure trends give it a durable competitive moat. Morgan Stanley names NVIDIA a top pick
• Positive Sentiment: NVIDIA’s recently announced $150 billion buyback authorization lifts total remaining repurchase capacity to approximately $235 billion. Investors view the plan as a sign of management confidence and a potential source of per-share earnings support. NVIDIA buyback analysis
• Positive Sentiment: Analysts continue to raise expectations for hyperscaler spending, with Barclays estimating NVIDIA could generate $401 billion in hyperscaler revenue in 2027. CoreWeave’s launch of the Vera Rubin platform and additional enterprise customers also supports demand for NVIDIA’s next-generation systems. Barclays hyperscaler revenue estimate
• Neutral Sentiment: The broader semiconductor and technology complex is attracting buying interest as AI investment remains a major market leadership theme. However, NVIDIA’s valuation and substantial market concentration leave the stock sensitive to interest rates, economic data and shifts in institutional positioning.
• Negative Sentiment: Investors are monitoring reports that Amazon may move roughly $8 billion of NVIDIA chips off its balance sheet through leasing or financing structures. While this could improve customer flexibility, it adds scrutiny around AI infrastructure financing and so-called circular transactions. Amazon NVIDIA chip balance-sheet report
• Negative Sentiment: Export-control concerns remain a headline risk after prosecutors alleged a California man helped smuggle approximately $300 million of NVIDIA chips to China. Separately, Michael Burry warned that GPU depreciation could undermine the economics of the AI infrastructure boom, while Alphabet’s growing use of internally designed chips represents a longer-term competitive threat. NVIDIA chip smuggling prosecution

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on NVDA. Royal Bank Of Canada raised their price objective on shares of NVIDIA from $300.00 to $330.00 and gave the stock an “outperform” rating in a report on Thursday, August 27th. Raymond James Financial set a $515.00 price target on NVIDIA and gave the company a “strong-buy” rating in a report on Thursday, August 27th. Sanford C. Bernstein reissued a “buy” rating on shares of NVIDIA in a research note on Monday, September 21st. Wells Fargo & Company set a $210.00 target price on shares of NVIDIA in a research note on Friday. Finally, DZ Bank reaffirmed a “buy” rating on shares of NVIDIA in a research note on Wednesday, August 26th. Four research analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, NVIDIA presently has an average rating of “Buy” and a consensus price target of $320.71.

NVIDIA Trading 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 business has a 50 day moving average price of $218.74 and a 200-day moving average price of $207.48. The company has a market cap of $5.64 trillion, a P/E ratio of 29.58, a PEG ratio of 1.78 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The firm had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. During the same period in the prior year, the firm posted $1.05 earnings per share. The company’s quarterly revenue was up 105.9% compared to the same quarter last year. Analysts forecast that NVIDIA Corporation will post 9.25 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were paid a $0.25 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.4%. NVIDIA’s dividend payout ratio is currently 12.64%.

NVIDIA declared that its board has approved a stock repurchase plan on Monday, September 28th that permits the company to repurchase $150.00 billion in outstanding shares. This repurchase authorization permits the computer hardware maker to buy up to 2.8% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its shares are undervalued.

Insider Transactions at NVIDIA

In related news, CFO Colette Kress sold 34,918 shares of the business’s stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total value of $7,648,787.90. Following the completion of the sale, the chief financial officer directly owned 765,103 shares in the company, valued at $167,595,812.15. The trade was a 4.36% 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 Mark Stevens sold 622,239 shares of the firm’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the transaction, the director owned 2,336,531 shares in the company, valued at $541,187,310.22. The trade was a 21.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Company insiders own 3.94% of the company’s stock.

Institutional Trading of NVIDIA

Institutional investors and hedge funds have recently made changes to their positions in the company. J. Stern & Co. LLP lifted its position in NVIDIA by 13,709.1% in the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock valued at $23,454,297,000 after purchasing an additional 124,849,603 shares during the last quarter. Jupiter Topco LLC acquired a new stake in NVIDIA during the 2nd quarter worth about $16,156,076,000. Van ECK Associates Corp lifted its holdings in shares of NVIDIA by 34.7% in the second quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker’s stock valued at $15,176,771,000 after purchasing an additional 19,522,304 shares in the last quarter. 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. Finally, Amundi boosted its holdings in shares of NVIDIA by 10.4% during 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 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 processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.