NVIDIA (NASDAQ:NVDA) Trading Up 7.9% – Here’s Why

Shares of NVIDIA Corporation (NASDAQ:NVDA) rose 7.9% during trading on Friday . The stock traded as high as $187.00 and last traded at $185.41. Approximately 228,489,864 shares changed hands during mid-day trading, an increase of 34% from the average daily volume of 170,979,781 shares. The stock had previously closed at $171.88.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Nvidia is reported to be committing about $20 billion to OpenAI, a high‑visibility strategic move that reinforces NVDA’s central role in the AI infrastructure ecosystem and likely supports further demand for its data‑center GPUs. Read More.
• Positive Sentiment: CEO Jensen Huang told CNBC that the industry’s ~$660 billion capex buildout for AI infrastructure is sustainable, and other coverage quotes him and customers saying demand is “through the roof” — comments that validate long‑term revenue visibility for NVDA’s chips. Read More.
• Positive Sentiment: Broad market and semiconductor sector rebounds lifted large-cap chips; NVDA, as the AI‑chip leader, led the rally as investors rotated back into tech after a recent sell‑off. Read More.
• Neutral Sentiment: Suppliers and industry players (e.g., Wistron) are signaling continued AI order growth and say AI is not a bubble — supportive industry context but not an immediate company‑specific catalyst. Read More.
• Neutral Sentiment: Wall‑street analysts remain largely positive and some firms are reiterating bullish ratings on NVDA, which underpins investor confidence but also keeps expectations high. Read More.
• Negative Sentiment: Company CFO Colette Kress sold sizeable blocks of NVDA shares (filed Form 4), which some investors interpret as a negative signal even though insider sales can be routine tax/planning moves. Read More.
• Negative Sentiment: Regulatory/export uncertainty around the H200 (China) export discussions remains unresolved in some reports — a potential headwind for growth in China if approvals are delayed or restricted. Read More.

Analysts Set New Price Targets

NVDA has been the topic of a number of analyst reports. Jefferies Financial Group reaffirmed a “buy” rating and issued a $275.00 price objective (up previously from $250.00) on shares of NVIDIA in a report on Friday, January 16th. Wall Street Zen upgraded NVIDIA from a “hold” rating to a “buy” rating in a research report on Sunday, January 25th. Evercore restated an “outperform” rating on shares of NVIDIA in a report on Tuesday, January 6th. S&P Equity Research reissued a “positive” rating on shares of NVIDIA in a research note on Wednesday, October 22nd. Finally, Robert W. Baird reiterated an “outperform” rating and set a $275.00 price objective on shares of NVIDIA in a report on Friday, December 26th. Four analysts have rated the stock with a Strong Buy rating, forty-six have assigned a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, NVIDIA currently has an average rating of “Buy” and an average price target of $263.98.

NVIDIA Trading Up 7.8%

The company has a current ratio of 4.47, a quick ratio of 3.71 and a debt-to-equity ratio of 0.06. The firm has a 50-day moving average price of $183.92 and a 200 day moving average price of $182.63. The company has a market cap of $4.50 trillion, a price-to-earnings ratio of 45.97, a price-to-earnings-growth ratio of 0.54 and a beta of 2.31.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data on Wednesday, November 19th. The computer hardware maker reported $1.30 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.23 by $0.07. NVIDIA had a return on equity of 99.24% and a net margin of 53.01%.The business had revenue of $57.01 billion during the quarter, compared to analyst estimates of $54.66 billion. During the same quarter in the previous year, the firm posted $0.81 EPS. The business’s revenue for the quarter was up 62.5% compared to the same quarter last year. As a group, sell-side analysts forecast that NVIDIA Corporation will post 2.77 EPS for the current year.

NVIDIA Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, December 26th. Shareholders of record on Thursday, December 4th were paid a dividend of $0.01 per share. The ex-dividend date of this dividend was Thursday, December 4th. This represents a $0.04 annualized dividend and a yield of 0.0%. NVIDIA’s payout ratio is presently 0.99%.

Insider Buying and Selling

In related news, CFO Colette Kress sold 30,500 shares of the stock in a transaction dated Friday, December 12th. The shares were sold at an average price of $178.11, for a total value of $5,432,355.00. Following the completion of the transaction, the chief financial officer owned 1,286,826 shares in the company, valued at $229,196,578.86. This represents a 2.32% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Debora Shoquist sold 80,000 shares of the company’s stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $178.90, for a total transaction of $14,312,000.00. Following the completion of the sale, the executive vice president directly owned 1,494,443 shares of the company’s stock, valued at approximately $267,355,852.70. This represents a 5.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 1,611,474 shares of company stock valued at $291,731,692. Company insiders own 4.17% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in NVDA. Joule Financial LLC lifted its holdings in NVIDIA by 2.2% in the 3rd quarter. Joule Financial LLC now owns 2,308 shares of the computer hardware maker’s stock valued at $431,000 after acquiring an additional 50 shares during the last quarter. Presidio Capital Management LLC boosted its holdings in NVIDIA by 0.4% during the fourth quarter. Presidio Capital Management LLC now owns 15,137 shares of the computer hardware maker’s stock worth $2,823,000 after buying an additional 53 shares in the last quarter. LMG Wealth Partners LLC grew its position in NVIDIA by 0.7% in the fourth quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker’s stock worth $1,427,000 after buying an additional 53 shares during the last quarter. Vision Financial Markets LLC grew its position in NVIDIA by 1.2% in the third quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker’s stock worth $866,000 after buying an additional 53 shares during the last quarter. Finally, Websterrogers Financial Advisors LLC increased its holdings in shares of NVIDIA by 2.6% in the third quarter. Websterrogers Financial Advisors LLC now owns 2,118 shares of the computer hardware maker’s stock valued at $395,000 after buying an additional 54 shares in the last quarter. Institutional investors and hedge funds own 65.27% of the company’s stock.

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.