NVIDIA (NASDAQ:NVDA) Stock Price Up 3.2% – Still a Buy?

by · The Markets Daily

Shares of NVIDIA Corporation (NASDAQ:NVDA – Get Free Report) rose 3.2% on Wednesday . The company traded as high as $227.95 and last traded at $224.41. Approximately 153,042,318 shares changed hands during mid-day trading, a decline of 4% from the average daily volume of 159,181,719 shares. The stock had previously closed at $217.44.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

  • Positive Sentiment: Hugging Face acquisition expands NVIDIA’s AI moat: NVIDIA agreed to acquire open-source AI platform Hugging Face for approximately $12.93 billion. The deal could strengthen CUDA adoption, retain developers and give NVIDIA greater influence over model development and deployment. NVIDIA agrees to buy Hugging Face
  • Positive Sentiment: AI demand remains well above expectations: Management’s outlook for roughly 70% revenue growth in fiscal 2028 is substantially above the approximately 45% growth analysts had modeled. Reports of a roughly $2 trillion backlog among cloud customers further support expectations for sustained data-center spending. NVIDIA cloud customer backlog
  • Positive Sentiment: Broader ecosystem investments are accelerating: NVIDIA’s equity investments reached $99 billion, spanning AI developers, cloud providers and infrastructure companies such as OpenAI, CoreWeave and Nebius. Its partnerships in inference, networking, MediaTek and robotics also broaden potential revenue streams beyond GPUs. NVIDIA AI investments reach $99 billion
  • Positive Sentiment: Customer commentary validates infrastructure demand: Dell’s stronger results and guidance, along with a reported $6 billion GPU deployment opportunity tied to Figure Robotics, provided additional evidence that enterprise, cloud and robotics customers continue investing heavily in NVIDIA systems. NVIDIA gains confidence from expanding AI customers
  • Neutral Sentiment: New product opportunities: Lenovo and Acer are expected to launch RTX Spark-powered AI PCs in October, while NVIDIA continues developing Vera server CPUs and inference products. These initiatives could diversify growth but require successful adoption. NVIDIA RTX Spark AI PC launch
  • Negative Sentiment: Margin and policy risks remain: Rising memory and networking costs may pressure gross margins, while semiconductor tariffs could disrupt supply chains. Investors are also monitoring weaker operating cash flow and higher receivables, suggesting customers may be taking longer to pay. NVIDIA margin risks from memory costs
  • Negative Sentiment: Insider selling and concentration risk: Executives and directors recently sold substantial holdings under planned transactions. NVIDIA’s enormous market capitalization and significant weighting in major indexes also leave the stock sensitive to profit-taking, interest rates and any slowdown in AI capital spending. NVIDIA insider selling

Analyst Upgrades and Downgrades

NVDA has been the subject of several recent analyst reports. Robert W. Baird set a $500.00 price objective on shares of NVIDIA and gave the stock an “outperform” rating in a research report on Thursday, May 21st. William Blair reissued an “outperform” rating on shares of NVIDIA in a research note on Tuesday, June 2nd. DZ Bank reaffirmed a “buy” rating on shares of NVIDIA in a research note on Wednesday, August 26th. Stifel Nicolaus set a $315.00 target price on NVIDIA in a research report on Thursday, August 27th. Finally, Benchmark reaffirmed a “buy” rating and issued a $335.00 price target on shares of NVIDIA in a research report on Thursday, August 27th. Two analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $324.23.

View Our Latest Stock Analysis on NVDA

NVIDIA Stock Up 1.8%

The stock has a 50 day moving average price of $209.85 and a 200 day moving average price of $201.85. 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 company has a market capitalization of $5.51 trillion, a P/E ratio of 28.88, a PEG ratio of 1.76 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA – Get Free Report) last issued 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 company had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. During the same quarter last year, the business posted $1.05 EPS. NVIDIA’s quarterly revenue was up 105.9% compared to the same quarter last year. Equities research analysts forecast that NVIDIA Corporation will post 9.1 earnings per share for the current fiscal year.

NVIDIA Dividend Announcement

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

NVIDIA declared that its board has approved a stock buyback program on Wednesday, May 20th that allows the company to repurchase $80.00 billion in shares. This repurchase authorization allows the computer hardware maker to purchase up to 1.5% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In other NVIDIA news, EVP Timothy S. Teter sold 30,000 shares of the stock in a transaction on Monday, August 31st. The stock was sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the sale, the executive vice president owned 2,687,660 shares in the company, valued at $585,587,360.80. This represents a 1.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 63,501 shares of the business’s stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $220.06, for a total value of $13,974,030.06. Following the sale, the director owned 4,558,770 shares in the company, valued at approximately $1,003,202,926.20. The trade was a 1.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,563,501 shares of company stock worth $335,380,530 in the last three months. Insiders own 3.94% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Montgomery Financial Services LLC purchased a new position in NVIDIA in the second quarter worth $28,000. Lifetime Wealth Management P.C. bought a new position in shares of NVIDIA during the 4th quarter valued at about $26,000. Longview Financial Advisors Inc. purchased a new stake in NVIDIA in the first quarter worth approximately $27,000. Longfellow Investment Management Co. LLC raised its stake in shares of NVIDIA by 47.9% during 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 in the last quarter. Finally, Phillip James Consulting Co. purchased a new position in shares of NVIDIA during the first quarter worth approximately $40,000. 65.27% of the stock is owned by institutional investors.

NVIDIA Company Profile

(Get Free Report)

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.

Further Reading