NVIDIA (NASDAQ:NVDA) Shares Up 1.7% – Here’s What Happened

NVIDIA Corporation (NASDAQ:NVDA) shares shot up 1.7% on Monday . The company traded as high as $210.47 and last traded at $208.64. 137,338,967 shares were traded during trading, a decline of 20% from the average session volume of 172,334,797 shares. The stock had previously closed at $205.10.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: DA Davidson said NVIDIA’s profit margins look relatively safe through 2030, reinforcing the view that the company’s earnings power can stay strong even as competition and capex rise.
• Positive Sentiment: Reuters reported that OpenAI is weighing a 10-gigawatt Ohio data center lease that could include NVIDIA backing, which would further validate demand for NVIDIA’s AI infrastructure ecosystem.
• Positive Sentiment: Multiple outlets highlighted new and expanding partnerships in South Korea, including collaboration plans with SK Group and continued efforts to secure HBM memory supply for next-gen Rubin chips, which supports NVIDIA’s supply chain and future production capacity.
• Positive Sentiment: Commentary from Jim Cramer, analysts, and bullish research pieces continued to frame NVIDIA as the key AI leader, with strong demand, robust Blackwell ramp expectations, and favorable analyst sentiment.
• Neutral Sentiment: Several articles emphasized that NVIDIA remains central to the AI trade, but also noted growing investor interest in alternative beneficiaries such as Micron, Intel, and other “next wave” AI infrastructure names.
• Negative Sentiment: The immediate drag on NVDA is the sector-wide chip rout: Broadcom, AMD, and other semiconductor names also fell sharply, and NVIDIA was hit as part of that broader de-risking move.
• Negative Sentiment: Some articles raised valuation and positioning concerns, including mentions of billionaire/institutional selling and skepticism that the stock’s recent dominance can continue without pauses or rotation.

Analyst Upgrades and Downgrades

NVDA has been the subject of a number of recent research reports. Zacks Research lowered shares of NVIDIA from a “strong-buy” rating to a “hold” rating in a research report on Thursday, May 21st. Morgan Stanley set a $288.00 price target on shares of NVIDIA and gave the stock an “overweight” rating in a research report on Thursday, May 21st. Rothschild & Co Redburn upped their price target on shares of NVIDIA from $280.00 to $300.00 and gave the company a “buy” rating in a report on Tuesday, May 26th. BTIG Research assumed coverage on shares of NVIDIA in a report on Wednesday, April 15th. They issued a “buy” rating on the stock. Finally, Wedbush upped their price target on shares of NVIDIA from $300.00 to $330.00 and gave the company an “outperform” rating in a report on Thursday, May 21st. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, NVIDIA presently has an average rating of “Buy” and a consensus target price of $305.67.

NVIDIA Stock Performance

The firm’s fifty day simple moving average is $204.93 and its 200 day simple moving average is $190.93. 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 capitalization of $4.85 trillion, a PE ratio of 30.69, a price-to-earnings-growth ratio of 0.47 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA) last posted its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business had revenue of $81.62 billion for the quarter, compared to analyst estimates of $78.42 billion. During the same period in the prior year, the company posted $0.81 EPS. The company’s revenue for the quarter was up 85.2% on a year-over-year basis. On average, research analysts predict that NVIDIA Corporation will post 8.61 EPS for the current year.

NVIDIA Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Thursday, June 4th will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend is Thursday, June 4th. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s dividend payout ratio is currently 15.31%.

NVIDIA announced that its Board of Directors has approved a stock repurchase program on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to buy up to 1.5% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s board believes its shares are undervalued.

Insider Buying and Selling

In related news, Director John Dabiri sold 625 shares of the business’s stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the completion of the sale, the director owned 14,163 shares of the company’s stock, valued at approximately $3,030,882. The trade was a 4.23% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of the business’s stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the sale, the director directly owned 116,135 shares of the company’s stock, valued at approximately $25,053,803.55. The trade was a 11.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,622,461 shares of company stock worth $332,629,083 in the last 90 days. 3.94% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Lifetime Wealth Management P.C. purchased a new position in NVIDIA in the 4th quarter valued at about $26,000. Longview Financial Advisors Inc. purchased a new position in NVIDIA in the 1st quarter valued at about $27,000. Longfellow Investment Management Co. LLC lifted its stake in NVIDIA by 47.9% in the 2nd 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 in the last quarter. Phillip James Consulting Co. purchased a new position in NVIDIA in the 1st quarter valued at about $40,000. Finally, Inspire Investing LLC purchased a new position in NVIDIA in the 4th quarter valued at about $44,000. 65.27% of the stock is owned by hedge funds and other institutional investors.

About NVIDIA

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.