NVIDIA Corporation (NASDAQ:NVDA) Stock Has Consensus Price Target of $318.85

Shares of NVIDIA Corporation (NASDAQ:NVDA) have earned a consensus rating of “Buy” from the fifty-four research firms that are presently covering the firm, Marketbeat Ratings reports. One equities research analyst has rated the stock with a hold recommendation, forty-eight have assigned a buy recommendation and five have issued a strong buy recommendation on the company. The average twelve-month price objective among brokers that have updated their coverage on the stock in the last year is $318.85.

A number of research analysts have weighed in on NVDA shares. Morgan Stanley set a $230.00 price objective on shares of NVIDIA in a research report on Friday, October 2nd. Rosenblatt Securities restated a “buy” rating and set a $390.00 target price on shares of NVIDIA in a research report on Tuesday, September 29th. Yorkville Ives started coverage on NVIDIA in a research report on Tuesday, October 6th. They set an “outperform” rating and a $300.00 target price on the stock. JPMorgan Chase & Co. lifted their price target on NVIDIA from $280.00 to $320.00 and gave the company an “overweight” rating in a research note on Thursday, August 27th. Finally, TD Cowen reaffirmed a “buy” rating on shares of NVIDIA in a report on Tuesday, August 18th.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Some investors see the decline as a buying opportunity, citing NVIDIA’s strong AI-chip position and profitability. ARK Invest also reportedly added $45.9 million of NVDA shares during the sell-off. Nvidia Stock Rises on Dip-Buying: 3 Reasons to Be Optimistic
• Positive Sentiment: CEO Jensen Huang says the next-generation Vera Rubin platform could generate more revenue per gigawatt of data-center capacity than the current platform, supporting the case for continued growth. Jensen Huang Says Nvidia’s Next-Gen Vera Rubin Chips Will Generate $40 Billion in Revenue per Gigawatt
• Neutral Sentiment: NVIDIA’s upcoming Nov. 17 results are a key near-term catalyst: investors will look for evidence that demand and guidance can ease fears about AI spending and justify the stock’s recovery. Nvidia Investors Need to Be Paying Attention on Nov. 17
• Negative Sentiment: The rebound follows a steep sell-off that wiped roughly $450 billion from NVIDIA’s market value. Investors are worried that a Democratic-led Congress, data-center permitting or regulatory hurdles, high capital costs, and uncertain returns could delay infrastructure projects and weaken future chip demand. AI stocks hammered by midterm shock as data center buildout becomes a ‘war of attrition’
• Negative Sentiment: Reports that NVIDIA may be taking on greater exposure to financially strained “neocloud” customers raise concern that it could face risks beyond selling chips if those providers struggle to fund data centers. As neoclouds face a financial reckoning, Nvidia has to decide how far to go to help

NVIDIA Stock Performance

NVDA opened at $186.64 on Wednesday. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The firm has a fifty day moving average price of $219.80 and a 200 day moving average price of $204.53. NVIDIA has a 1 year low of $164.27 and a 1 year high of $243.37. The stock has a market cap of $4.50 trillion, a P/E ratio of 23.60, a P/E/G ratio of 1.43 and a beta of 2.21.

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

NVIDIA Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were issued a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA’s dividend payout ratio (DPR) is presently 12.64%.

NVIDIA announced that its Board of Directors has approved a stock repurchase plan on Monday, September 28th that allows the company to buy back $150 billion in shares. This repurchase authorization allows the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Share repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other news, Director Mark A. Stevens sold 622,239 shares of the stock in a transaction that occurred 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 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 sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Timothy S. Teter sold 30,460 shares of NVIDIA 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 represents 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. Insiders sold 1,766,118 shares of company stock worth $399,450,353 over the last three months. 3.94% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On NVIDIA

A number of large investors have recently added to or reduced their stakes in NVDA. Intelligent Financial Strategies acquired a new position in shares of NVIDIA during the 3rd quarter worth $26,000. Montgomery Financial Services LLC purchased a new stake in shares of NVIDIA in the 2nd quarter worth about $28,000. Newton One Investments LLC acquired a new stake in NVIDIA in the 3rd quarter valued at about $34,000. Phillip James Consulting Co. acquired a new stake in NVIDIA in the 1st quarter valued at about $40,000. Finally, Bard Associates Inc. increased its holdings in NVIDIA by 8,866.7% during the 2nd quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker’s stock valued at $54,000 after acquiring an additional 266 shares in the last quarter. 65.27% of the stock is currently owned by institutional investors and hedge funds.

About NVIDIA

NVIDIA Corporation develops graphics processing units (GPUs), accelerated computing platforms and related software. Founded in 1993, the company first became widely known for GPUs used in PC gaming and professional graphics. Its technology now also supports artificial intelligence, scientific computing and other data-intensive applications.

NVIDIA’s offerings include GeForce products for gaming, data-center GPUs and systems for AI workloads, and networking products that connect computing infrastructure.