NVIDIA (NASDAQ:NVDA) Stock Jumps 2.1% – Here’s What Happened

Shares of NVIDIA Corporation (NASDAQ:NVDA) rose 2.1% on Monday. The stock traded as high as $240.10 and last traded at $238.90. Approximately 124,090,358 shares traded hands during trading, a decline of 19% from the average daily volume of 153,683,313 shares. The stock had previously closed at $233.95.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: AM Intelligence announced firm orders for 20,000 NVIDIA Rubin GPUs for AI factory deployments in India and Malaysia, providing a concrete indication of demand for NVIDIA’s next-generation systems. AM Intelligence Expands NVIDIA Vera Rubin AI Factory Buildout
• Positive Sentiment: Analysts and options traders remain bullish, with some expecting NVIDIA to reach a $6 trillion market capitalization later this month. Morgan Stanley has also returned NVIDIA to its top-pick list, citing data-center demand and capacity expansion. NVIDIA’s $6-trillion milestone looms
• Positive Sentiment: NVIDIA’s expanded $235 billion share-repurchase authorization is being viewed as a sign of management confidence and could provide support for per-share earnings if buybacks are executed. AI stocks announce major buybacks
• Positive Sentiment: Commentary highlighting NVIDIA’s AI software ecosystem, agent-security initiatives, robotics exposure and potential strategic acquisitions reinforces the company’s long-term competitive moat, although these areas are not immediate revenue catalysts. NVIDIA’s AI safety push
• Neutral Sentiment: Investors are looking ahead to Taiwan Semiconductor Manufacturing’s October 15 results for additional evidence on AI-chip demand, production capacity and the strength of NVIDIA’s supply chain. Why October 15 matters for NVIDIA
• Negative Sentiment: A lawsuit alleges that NVIDIA’s $20 billion Groq licensing transaction disadvantaged Groq shareholders and bypassed a required vote. The dispute creates legal and reputational risk, though its direct financial impact on NVIDIA remains unclear. NVIDIA’s Groq deal faces lawsuit
• Negative Sentiment: After a powerful rally and record valuation, analysts warn that the stock increasingly depends on AI orders continuing to grow faster than NVIDIA’s price and that customer spending could eventually slow. Higher bond yields also remain a market-wide risk for expensive technology shares. NVIDIA rally and valuation risks

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the company. JPMorgan Chase & Co. lifted their price objective on NVIDIA from $280.00 to $320.00 and gave the stock an “overweight” rating in a report on Thursday, August 27th. Piper Sandler started coverage on NVIDIA in a research report on Wednesday, September 9th. They issued an “overweight” rating and a $300.00 target price on the stock. Melius Research set a $420.00 price target on NVIDIA in a research note on Thursday, August 27th. Phillip Securities boosted their target price on NVIDIA from $285.00 to $300.00 and gave the stock a “buy” rating in a report on Monday, August 31st. Finally, President Capital increased their price target on NVIDIA from $295.00 to $330.00 in a report on Thursday, August 27th. Four research analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Buy” and an average target price of $321.89.

NVIDIA Stock Up 2.1%

The company has a market capitalization of $5.76 trillion, a PE ratio of 30.20, a price-to-earnings-growth ratio of 1.81 and a beta of 2.22. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The firm has a 50-day moving average of $218.74 and a two-hundred day moving average of $207.65.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, beating the consensus estimate of $2.09 by $0.13. The business had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The company’s quarterly revenue was up 105.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.05 EPS. Equities research analysts predict 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. Stockholders of record on Thursday, September 10th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA’s payout ratio is 12.64%.

NVIDIA announced that its board has initiated a share repurchase plan on Monday, September 28th that authorizes the company to repurchase $150.00 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to repurchase up to 2.8% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling

In related news, CFO Colette Kress sold 34,918 shares of the stock in a transaction that occurred on Thursday, September 17th. The shares were 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 owned 765,103 shares of the company’s stock, valued at approximately $167,595,812.15. This trade represents a 4.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible 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 business’s stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the sale, the executive vice president directly owned 2,687,660 shares in the company, valued at approximately $598,810,648. The trade was a 1.12% decrease in their position. 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 1,766,118 shares of company stock valued at $399,450,353. Company insiders own 3.94% of the company’s stock.

Institutional Investors Weigh In On NVIDIA

Several large investors have recently bought and sold shares of NVDA. Retirement Wealth Solutions LLC raised its position in shares of NVIDIA by 1.2% during the 2nd quarter. Retirement Wealth Solutions LLC now owns 4,121 shares of the computer hardware maker’s stock worth $825,000 after acquiring an additional 47 shares in the last quarter. LightSquare Wealth Management LLC increased its stake in NVIDIA by 0.3% in the second quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker’s stock valued at $3,741,000 after purchasing an additional 49 shares during the last quarter. Defender Capital LLC. increased its stake in NVIDIA by 0.7% in the second quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker’s stock valued at $1,507,000 after purchasing an additional 50 shares during the last quarter. Kooman & Associates raised its holdings in NVIDIA by 0.6% during the second quarter. Kooman & Associates now owns 8,464 shares of the computer hardware maker’s stock worth $1,694,000 after purchasing an additional 50 shares in the last quarter. Finally, Roof Eidam Maycock Peralta LLC lifted its position in shares of NVIDIA by 0.3% during the 2nd quarter. Roof Eidam Maycock Peralta LLC now owns 18,827 shares of the computer hardware maker’s stock worth $3,767,000 after buying an additional 50 shares during the last quarter. Hedge funds and other 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.