NVIDIA (NASDAQ:NVDA) Cut to Buy at Wall Street Zen

Wall Street Zen cut shares of NVIDIA (NASDAQ:NVDA) from a strong-buy rating to a buy rating in a report released on Saturday morning,Wall Street Zen reports.

NVDA has been the topic of several other reports. Jefferies Financial Group reaffirmed a “buy” rating on shares of NVIDIA in a report on Wednesday, August 26th. HSBC raised their price objective on shares of NVIDIA from $360.00 to $365.00 in a report on Thursday, August 27th. Citigroup reissued a “buy” rating and issued a $315.00 target price (up from $300.00) on shares of NVIDIA in a research report on Thursday, August 27th. Daiwa Securities Group cut their target price on shares of NVIDIA from $255.00 to $245.00 and set an “outperform” rating on the stock in a research note on Thursday, September 17th. Finally, Stifel Nicolaus set a $315.00 price target on shares of NVIDIA in a research report on Thursday, August 27th. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus target price of $321.47.

NVIDIA Trading Up 2.4%

NASDAQ:NVDA opened at $216.00 on Friday. The business’s 50-day moving average is $222.48 and its two-hundred day moving average is $203.56. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. NVIDIA has a 12 month low of $164.27 and a 12 month high of $243.37. The firm has a market capitalization of $5.21 trillion, a PE ratio of 30.57, a price-to-earnings-growth ratio of 1.62 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA) last posted its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business had revenue of $96.22 billion for the quarter, compared to analysts’ expectations of $92.27 billion. During the same period in the previous year, the company posted $1.05 earnings per share. The business’s revenue for the quarter was up 105.9% compared to the same quarter last year. Research analysts predict that NVIDIA will post 9.30 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Stockholders 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 annualized dividend and a dividend yield of 0.5%. NVIDIA’s dividend payout ratio is 12.64%.

NVIDIA declared that its Board of Directors has approved a share buyback plan on Monday, September 28th that authorizes the company to buy back $150 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Share buyback plans are generally an indication that the company’s leadership believes its stock is undervalued.

Insider Transactions at NVIDIA

In other NVIDIA news, CFO Colette Kress sold 34,918 shares of the firm’s stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total value of $7,648,787.90. Following the sale, the chief financial officer directly owned 765,103 shares in the company, valued at $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 available at the SEC website. 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 on Monday, September 21st. The shares were sold at an average price of $222.80, for a total transaction 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 $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. Over the last ninety days, insiders have 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

A number of large investors have recently modified their holdings of the stock. SYM FINANCIAL Corp increased its holdings in NVIDIA by 5.1% during the 3rd quarter. SYM FINANCIAL Corp now owns 59,379 shares of the computer hardware maker’s stock worth $13,561,000 after purchasing an additional 2,886 shares in the last quarter. Midland Wealth Advisors LLC raised its stake in shares of NVIDIA by 13.8% in the 3rd quarter. Midland Wealth Advisors LLC now owns 19,294 shares of the computer hardware maker’s stock valued at $4,406,000 after purchasing an additional 2,340 shares during the period. Independence Bank of Kentucky lifted its holdings in shares of NVIDIA by 3.6% in the third quarter. Independence Bank of Kentucky now owns 146,829 shares of the computer hardware maker’s stock valued at $33,533,000 after purchasing an additional 5,160 shares in the last quarter. Ashton Thomas Securities LLC lifted its holdings in shares of NVIDIA by 8.2% in the third quarter. Ashton Thomas Securities LLC now owns 146,180 shares of the computer hardware maker’s stock valued at $33,385,000 after purchasing an additional 11,075 shares in the last quarter. Finally, Black Diamond Financial LLC lifted its holdings in shares of NVIDIA by 11.4% in the third quarter. Black Diamond Financial LLC now owns 20,843 shares of the computer hardware maker’s stock valued at $4,760,000 after purchasing an additional 2,128 shares in the last quarter. 65.27% of the stock is currently owned by institutional investors and hedge funds.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: SpaceX reportedly committed up to $40 billion in financing for NVIDIA’s Vera Rubin processors, with deliveries expected in 2027. SpaceX’s plans to build at least 10 gigawatts of computing capacity could create substantial long-term demand for NVIDIA hardware. Elon Musk and SpaceX Just Delivered Incredible News to Nvidia
• Positive Sentiment: Anthropic’s IPO filing highlighted approximately $224.5 billion in non-cancelable compute agreements with Amazon and Alphabet. The commitments reinforce expectations for sustained hyperscaler spending on NVIDIA GPUs and other AI infrastructure, despite Anthropic’s reported accounting-driven loss. Anthropic’s IPO Filing Reveals a Massive Opportunity for AI Infrastructure Giants
• Positive Sentiment: Demand indicators remain strong: GPU rental prices have risen sharply, including for older chips, while NVIDIA is expanding beyond data centers through a self-driving partnership with Mercedes-Benz and an industrial AI collaboration with Honeywell and Dell. Nvidia Just Doubled Down on Self-Driving Cars With Mercedes
• Neutral Sentiment: Analyst sentiment remains overwhelmingly bullish, with reports citing a 98% buy-rating rate and continued confidence in NVIDIA’s triple-digit revenue growth. However, the shares remain below their 50-day moving average while trading above the 200-day average, reflecting both strong long-term momentum and near-term volatility.
• Negative Sentiment: Credit-market pressure could slow AI data-center construction and reduce GPU purchases by highly leveraged neocloud operators. Analysts also warn of infrastructure bottlenecks, while Broadcom’s custom AI chips and open Ethernet alternatives could gradually challenge NVIDIA’s ecosystem and InfiniBand position. Seaport Reiterates Sell Rating On Nvidia Stock Over Data Center Infrastructure Bottlenecks

NVIDIA Company Profile

NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.

The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.