NVIDIA (NASDAQ:NVDA) Shares Up 3% – Still a Buy?

NVIDIA Corporation (NASDAQ:NVDA) rose 3% on Thursday . The stock traded as high as $211.39 and last traded at $210.69. Approximately 238,018,252 shares traded hands during mid-day trading, an increase of 39% from the average daily volume of 171,082,766 shares. The stock had previously closed at $204.65.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA was reported to have taken the No. 1 spot in data center Ethernet switching by revenue in Q1, highlighting growing demand for its broader networking and AI infrastructure products beyond GPUs. Nvidia takes No. 1 spot in data center ethernet switching by revenue in Q1: IDC
• Positive Sentiment: Several articles pointed to continued strength in NVIDIA’s AI ecosystem, including a new NVIDIA-linked ETF launch and HIVE Digital’s $220 million AI infrastructure contract that will deploy 2,304 NVIDIA Grace Blackwell GPUs, reinforcing ongoing enterprise demand for NVIDIA hardware. Exchange Traded Concepts Announces Launch of PurePlay Nvidia Ecosystem Picks & Shovels Index ETF (Nasdaq: NVPS) with PurePlay ETFs HIVE secures $220M AI infrastructure contract with Bell and Cohere
• Positive Sentiment: Jensen Huang’s upbeat comments about buying AI-related stocks on dips and broader media coverage of NVIDIA’s growth outside the U.S. added to the bullish narrative around long-term demand. Nvidia Stock Gains as the Chip Maker Looks to Growth Outside the U.S.
• Neutral Sentiment: News that Representative Cleo Fields disclosed holdings including NVIDIA stock is not material to NVIDIA’s fundamentals, but it keeps the name visible in recent political-trading coverage. Representative Cleo Fields has filed a new financial disclosure – here’s what we see
• Negative Sentiment: Amazon reportedly wants to sell its own AI chips more aggressively, a potential competitive threat that could pressure NVIDIA’s long-term dominance in cloud AI accelerators. Amazon hopes to challenge Nvidia more directly by selling its AI chips
• Negative Sentiment: Commentary about an AI funding squeeze and comparisons of today’s AI capital spending boom to past bubbles raised investor caution around the sustainability of NVIDIA-driven demand. Nvidia Stock Braced for AI Funding Squeeze Legendary Short Seller Jim Chanos Issues Dire Prediction: “We Have the Same Setup” As the Dot-Com Crash. Here’s How the AI Bull Market Ends

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the stock. Argus increased their price target on shares of NVIDIA from $220.00 to $270.00 and gave the stock a “buy” rating in a research report on Thursday, May 21st. President Capital lifted their price objective on shares of NVIDIA from $280.00 to $295.00 and gave the company a “buy” rating in a report on Thursday, May 21st. Craig Hallum upped their target price on shares of NVIDIA from $245.00 to $275.00 and gave the stock a “buy” rating in a research note on Thursday, May 21st. William Blair reiterated an “outperform” rating on shares of NVIDIA in a report on Tuesday, June 2nd. Finally, New Street Research decreased their price target on shares of NVIDIA from $343.00 to $340.00 in a research report on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and an average target price of $305.67.

NVIDIA Stock Up 3.0%

The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The company has a market cap of $5.10 trillion, a PE ratio of 32.26, a P/E/G ratio of 0.46 and a beta of 2.22. The business’s 50 day moving average is $208.68 and its 200-day moving average is $192.01.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings data 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 company had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company’s quarterly revenue was up 85.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.81 EPS. As a group, analysts predict that NVIDIA Corporation will post 8.65 EPS for the current year.

NVIDIA Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be paid a $0.25 dividend. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date is Thursday, June 4th. 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 repurchase $80.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other news, Director John Dabiri sold 625 shares of the stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total value of $133,750.00. Following the transaction, the director owned 14,163 shares in the company, valued at approximately $3,030,882. This represents a 4.23% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of the firm’s stock in a transaction dated 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 sale, the director directly owned 116,135 shares in the company, valued at $25,053,803.55. This trade represents a 11.77% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 1,300,457 shares of company stock valued at $274,041,153. 3.94% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of NVDA. Lifetime Wealth Management P.C. purchased a new position in NVIDIA during the 4th quarter worth approximately $26,000. Longview Financial Advisors Inc. purchased a new stake in NVIDIA in the first quarter valued at approximately $27,000. Longfellow Investment Management Co. LLC lifted its stake 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 buying an additional 67 shares during the last quarter. Phillip James Consulting Co. purchased a new position in shares of NVIDIA during the first quarter worth approximately $40,000. Finally, Spurstone Advisory Services LLC purchased a new stake in NVIDIA in the 2nd quarter valued at $40,000. 65.27% of the stock is owned by hedge funds and other institutional investors.

NVIDIA Company Profile

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.