NVIDIA (NASDAQ:NVDA) Stock Price Up 1.7% – Still a Buy?

NVIDIA Corporation (NASDAQ:NVDA) traded up 1.7% on Monday. The company traded as high as $233.21 and last traded at $228.86. 141,167,517 shares changed hands during mid-day trading, a decline of 9% from the average daily volume of 154,614,969 shares. The stock had previously closed at $225.07.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s board authorized an additional $150 billion in share repurchases, lifting the total remaining authorization to $235 billion through fiscal 2028. The move signals confidence in NVIDIA’s cash generation and could support earnings per share by reducing the share count. Nvidia adds $150 billion to existing share repurchase plan
• Positive Sentiment: The buyback announcement was the primary catalyst for the stock’s advance and helped NVIDIA outperform other semiconductor shares despite a weaker Nasdaq backdrop. Analysts cited NVIDIA’s exceptional AI-driven revenue and profit growth, with some viewing the valuation as attractive relative to major chipmakers. Nvidia Stock Rises as Company Boosts Buyback Plan
• Positive Sentiment: NVIDIA launched its open-source Open Agent Safety Platform, including tools intended to monitor AI agents, restrict access and shut them down when they violate policies. The platform could create an additional software and security opportunity while strengthening NVIDIA’s role in the broader AI ecosystem. Nvidia releases AI safety software
• Neutral Sentiment: Reports that China may allow companies such as Alibaba and ByteDance to purchase certain NVIDIA processors offer a potential demand catalyst, but the reports remain subject to government approval and ongoing U.S.-China export restrictions. Nvidia Chips for Alibaba and ByteDance
• Negative Sentiment: Some analysts remain bearish, citing NVIDIA’s enormous market capitalization, dependence on continued data-center spending, intensifying competition and China’s progress in AI. Recent AI-agent security incidents also highlight risks surrounding the rapid deployment of the technology NVIDIA supplies. The Anti-Nvidia Trade

Wall Street Analysts Forecast Growth

NVDA has been the topic of a number of research analyst reports. Oppenheimer set a $315.00 price target on NVIDIA and gave the stock an “outperform” rating in a report on Thursday, August 27th. BMO Capital Markets set a $340.00 target price on shares of NVIDIA and gave the stock an “outperform” rating in a report on Thursday, August 20th. JPMorgan Chase & Co. upped their target price on shares of NVIDIA from $280.00 to $320.00 and gave the company an “overweight” rating in a research report on Thursday, August 27th. DA Davidson reaffirmed a “buy” rating and issued a $300.00 price target on shares of NVIDIA in a report on Thursday, August 27th. Finally, Phillip Securities lifted their price target on NVIDIA from $285.00 to $300.00 and gave the stock a “buy” rating in a research report on Monday, August 31st. Four research analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Buy” and an average price target of $324.14.

NVIDIA Stock Performance

The stock has a market capitalization of $5.52 trillion, a PE ratio of 28.93, a PEG ratio of 1.74 and a beta of 2.22. The business’s 50 day moving average is $216.52 and its 200 day moving average is $206.02. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA) last issued its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. During the same period in the previous year, the firm earned $1.05 earnings per share. The business’s revenue was up 105.9% on a year-over-year basis. On average, equities research analysts predict that NVIDIA Corporation will post 9.25 earnings per share for the current fiscal year.

NVIDIA Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be issued a $0.25 dividend. The ex-dividend date is Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.4%. NVIDIA’s payout ratio is presently 12.64%.

Insider Buying and Selling

In other NVIDIA news, Director Mark Stevens sold 622,239 shares of the firm’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the transaction, the director directly owned 2,336,531 shares in the company, valued at $541,187,310.22. This trade represents a 21.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Timothy Teter sold 30,460 shares of the company’s stock in a transaction on Monday, September 21st. The stock was 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 owned 2,687,660 shares of the company’s stock, valued at $598,810,648. This represents a 1.12% 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. Insiders have sold a total of 1,766,118 shares of company stock valued at $399,450,353 over the last quarter. 3.94% of the stock is owned by corporate insiders.

Institutional Trading of NVIDIA

A number of hedge funds have recently added to or reduced their stakes in NVDA. State Street Corp raised its holdings in shares of NVIDIA by 1.6% in the 2nd quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker’s stock valued at $202,047,568,000 after purchasing an additional 15,897,836 shares in the last quarter. Bank of America Corp DE boosted its stake in shares of NVIDIA by 2.2% during the second quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker’s stock valued at $39,090,956,000 after purchasing an additional 4,165,875 shares in the last quarter. Invesco Ltd. increased its holdings in NVIDIA by 0.3% during the fourth quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker’s stock valued at $26,714,167,000 after buying an additional 446,178 shares during the period. Amundi increased its holdings in NVIDIA by 10.4% during the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock valued at $23,329,141,000 after buying an additional 12,575,177 shares during the period. Finally, J. Stern & Co. LLP raised its stake in NVIDIA by 13,709.1% in the fourth quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock worth $23,454,297,000 after buying an additional 124,849,603 shares in the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

About NVIDIA

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.