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

by · The Markets Daily

NVIDIA Corporation (NASDAQ:NVDA – Get Free Report) shares traded up 2.9% on Friday . The company traded as high as $202.00 and last traded at $200.75. 138,786,177 shares changed hands during trading, a decline of 15% from the average session volume of 163,875,469 shares. The stock had previously closed at $195.04.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

  • Positive Sentiment: Amazon supports demand outlook: Amazon raised its capital-expenditure forecast and downplayed competition between its custom AI chips and NVIDIA’s processors. The update reassured investors that hyperscaler spending remains a significant growth driver for NVIDIA. Nvidia Stock Rises. Thank Amazon.
  • Positive Sentiment: Additional large-scale chip demand: Chinese AI company Moonshot reportedly has an Alibaba computing agreement involving approximately 20,000 NVIDIA chips. Although the arrangement is indirect, it highlights continued demand for NVIDIA’s accelerators across AI platforms. Moonshot has Nvidia chip cluster from Alibaba computing deal
  • Positive Sentiment: Sector-wide investor support: Semiconductor ETFs attracted substantial new money as chip stocks rallied following strong technology earnings, providing a favorable backdrop for NVIDIA. Analysts also remain broadly bullish, with reported median price targets well above the current trading level and positive earnings-estimate revisions. Semiconductor ETFs Draw Cash This Week as Chip Stocks Rally
  • Neutral Sentiment: Upcoming earnings catalyst: NVIDIA will report fiscal second-quarter 2027 results on August 26. Investors will focus on revenue growth, forward guidance and whether hyperscaler AI spending is translating into sustained orders. The company’s latest reported quarter showed $81.6 billion in revenue, up 85% year over year, and earnings above consensus.
  • Negative Sentiment: Financing concerns remain: Investors continue to debate whether AI infrastructure expansion relies too heavily on leveraged or “circular” financing arrangements. Credit-market hedging activity and discussion of a potential financing backstop tied to an OpenAI data-center project could limit valuation expansion. NVIDIA Stock Is Still Up, But $250 Billion AI Risk Has Spooked The Debt Market
  • Negative Sentiment: Bearish positioning and selling: Investor Michael Burry reportedly expanded bearish bets against NVIDIA, while recent insider and institutional selling adds a secondary source of caution. These transactions do not necessarily indicate deteriorating fundamentals but may contribute to volatility.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the stock. Seaport Research Partners increased their price objective on shares of NVIDIA from $140.00 to $180.00 and gave the company a “sell” rating in a research note on Thursday, May 21st. Raymond James Financial reissued a “strong-buy” rating and issued a $330.00 target price on shares of NVIDIA in a research note on Thursday, May 21st. Weiss Ratings reissued a “buy (b)” rating on shares of NVIDIA in a research report on Wednesday, July 8th. Truist Financial raised their price target on shares of NVIDIA from $287.00 to $307.00 and gave the stock a “buy” rating in a research note on Thursday, May 21st. Finally, Wells Fargo & Company reaffirmed an “overweight” rating and set a $315.00 price objective (up from $265.00) on shares of NVIDIA in a report on Tuesday, May 12th. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $304.26.

Check Out Our Latest Stock Report on NVIDIA

NVIDIA Stock Up 2.9%

The stock has a market capitalization of $4.86 trillion, a P/E ratio of 30.74, a P/E/G ratio of 0.39 and a beta of 2.21. The firm’s fifty day moving average is $205.41 and its 200-day moving average is $196.12. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04.

NVIDIA (NASDAQ:NVDA – Get Free Report) last released its quarterly earnings results 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. The firm had revenue of $81.61 billion for the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company’s revenue for the quarter was up 85.2% compared to the same quarter last year. During the same period in the previous year, the business earned $0.81 earnings per share. As a group, equities research analysts predict that NVIDIA Corporation will post 8.79 earnings per share for the current year.

NVIDIA Increases Dividend

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

NVIDIA announced that its board has authorized a share buyback plan on Wednesday, May 20th that allows the company to buyback $80.00 billion in shares. This buyback authorization allows the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling at NVIDIA

In other news, Director Stephen C. Neal sold 15,500 shares of the firm’s stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total value of $3,343,815.00. Following the completion of the sale, the director directly owned 116,135 shares in the company, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director John Dabiri sold 625 shares of NVIDIA stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the completion of the transaction, the director directly owned 14,163 shares of the company’s stock, valued at $3,030,882. This represents a 4.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 1,901,125 shares of company stock worth $410,583,015. 3.94% of the stock is currently owned by insiders.

Institutional Investors Weigh In On NVIDIA

Several hedge funds and other institutional investors have recently added to or reduced their stakes in NVDA. Lifetime Wealth Management P.C. acquired a new stake in shares of NVIDIA in the 4th quarter valued at $26,000. Longview Financial Advisors Inc. bought a new position in NVIDIA in the first quarter valued at about $27,000. Longfellow Investment Management Co. LLC boosted its holdings 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 valued at $33,000 after acquiring an additional 67 shares during the last quarter. Phillip James Consulting Co. acquired a new stake in NVIDIA in the first quarter worth about $40,000. Finally, Inspire Investing LLC acquired a new stake in NVIDIA in the fourth quarter worth about $44,000. Institutional investors and hedge funds own 65.27% of the company’s stock.

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