NVIDIA (NASDAQ:NVDA) Stock Price Up 1.3% – Here’s What Happened

by · The Markets Daily

NVIDIA Corporation (NASDAQ:NVDA – Get Free Report) rose 1.3% during mid-day trading on Friday. The company traded as high as $237.88 and last traded at $233.95. 134,349,957 shares were traded during mid-day trading, a decline of 13% from the average session volume of 153,858,594 shares. The stock had previously closed at $230.86.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

  • Positive Sentiment: Morgan Stanley named NVIDIA its top semiconductor pick and maintained an Overweight rating with a $300 price target, citing the company’s positioning for continued AI infrastructure expansion. Morgan Stanley sets Nvidia stock price target after naming it a top pick
  • Positive Sentiment: NVIDIA’s $150 billion buyback expansion raised its remaining authorization to approximately $235 billion through 2028. The program signals management confidence, may support earnings per share and provides a significant source of demand for the stock. Can NVIDIA’s $150B Repurchase Plan Enhance Shareholder Value?
  • Positive Sentiment: Analysts continue to see strong upside from AI spending. Barclays estimated NVIDIA could generate $401 billion in hyperscaler revenue in 2027, above its prior $370 billion forecast, while other commentary highlighted more than doubling quarterly revenue and a valuation viewed as reasonable relative to growth. Nvidia stock gains as Barclays sees $401B hyperscaler revenue in 2027
  • Positive Sentiment: CoreWeave’s launch of NVIDIA’s Vera Rubin platform and new enterprise offerings reinforces demand for the company’s latest AI systems. Broad semiconductor strength and bullish views on NVIDIA’s earnings revisions also supported sentiment. CoreWeave Unleashes Nvidia’s Vera Rubin
  • Neutral Sentiment: Amazon reportedly is exploring ways to move roughly $8 billion of NVIDIA AI chips off its balance sheet, including a possible leaseback structure. This could create financing or demand questions, but it may also help Amazon fund additional AI capacity. Amazon Looks to Offload $8B of Nvidia AI Chips From Its Balance Sheet
  • Negative Sentiment: Investors remain concerned about accounts receivable, customer financing and potentially circular funding arrangements supporting AI infrastructure purchases. Critics also warn that supply bottlenecks may persist for at least two years and that gross margins could temporarily weaken.
  • Negative Sentiment: Reports that restricted NVIDIA chips reached China through alleged smuggling and state-backed financing could increase regulatory scrutiny, enforcement costs and the risk of tighter export controls. California man smuggled $300 million in Nvidia chips to China

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. Wells Fargo & Company set a $210.00 target price on NVIDIA in a report on Friday. TD Cowen restated a “buy” rating on shares of NVIDIA in a report on Tuesday, August 18th. Mizuho set a $315.00 target price on shares of NVIDIA and gave the stock an “outperform” rating in a report on Thursday, August 27th. Stifel Nicolaus set a $315.00 price target on shares of NVIDIA in a research report on Thursday, August 27th. Finally, UBS Group set a $300.00 price objective on shares of NVIDIA and gave the company a “buy” rating in a research note on Thursday, August 27th. Four research analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, NVIDIA presently has an average rating of “Buy” and a consensus target price of $320.71.

Read Our Latest Research Report on NVDA

NVIDIA Stock Performance

The firm has a fifty day moving average price of $218.20 and a 200 day moving average price of $207.30. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The stock has a market cap of $5.64 trillion, a PE ratio of 29.58, a price-to-earnings-growth ratio of 1.76 and a beta of 2.22.

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

NVIDIA Announces Dividend

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

NVIDIA declared that its Board of Directors has initiated a share buyback program on Monday, September 28th that permits the company to repurchase $150.00 billion in shares. This repurchase authorization permits the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling at NVIDIA

In related news, CFO Colette Kress sold 34,918 shares of NVIDIA stock in a transaction that occurred 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 directly owned 765,103 shares in the company, valued at approximately $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. The sale was disclosed in a legal 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 Teter sold 30,460 shares of the company’s stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the completion of the transaction, the executive vice president owned 2,687,660 shares of the company’s stock, valued at approximately $598,810,648. This trade represents a 1.12% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 1,766,118 shares of company stock worth $399,450,353. Company insiders own 3.94% of the company’s stock.

Hedge Funds Weigh In On NVIDIA

Large investors have recently made changes to their positions in the stock. Montgomery Financial Services LLC purchased a new position in NVIDIA during the 2nd quarter valued at about $28,000. Lifetime Wealth Management P.C. purchased a new stake in shares of NVIDIA during the 4th quarter worth $26,000. Longview Financial Advisors Inc. acquired a new position in shares of NVIDIA during the 1st quarter worth about $27,000. Phillip James Consulting Co. acquired a new position in shares of NVIDIA during the 1st quarter worth about $40,000. Finally, Bard Associates Inc. increased its holdings in shares of NVIDIA by 8,866.7% in the 2nd quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker’s stock valued at $54,000 after acquiring an additional 266 shares during the last quarter. 65.27% of the stock is currently owned by institutional investors and hedge funds.

NVIDIA Company Profile

(Get Free Report)

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.

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