NVIDIA Corporation (NASDAQ:NVDA – Get Free Report)’s stock price shot up 3.5% on Monday . The company traded as high as $212.71 and last traded at $212.45. 148,670,956 shares were traded during mid-day trading, a decline of 13% from the average session volume of 171,454,266 shares. The stock had previously closed at $205.19.
NVIDIA News Summary
Here are the key news stories impacting NVIDIA this week:
- Positive Sentiment: NVIDIA plans to issue about $20 billion in investment-grade bonds, a move that suggests strong access to capital and continued investment in AI chip production. Nvidia Stock Retakes Key Level As Chipmaker Plans Bond Offering
- Positive Sentiment: The broader semiconductor rally is lifting NVIDIA along with other AI chip names, reflecting stronger near-term market momentum for the group. AMD Jumps 7% to a Record High, NVIDIA Climbs 4%, Intel Rises 3% in a Risk-On Chip Surge
- Positive Sentiment: Analyst commentary continues to point to significant upside for NVIDIA as AI infrastructure spending remains robust and demand keeps expanding. As Demand Continues To Grow, Nvidia (NVDA) Has 46% Upside According To Analysts
- Positive Sentiment: Multiple pieces framed NVIDIA as a key long-term winner from AI and cloud spending trends, which helps support the stock’s valuation. Goldman Sachs Predicts AI Infrastructure Spending Could Hit More Than $1 Trillion in 2027. 3 AI Stocks to Buy.
Wall Street Analysts Forecast Growth
Several equities analysts recently weighed in on NVDA shares. Oppenheimer reissued an “outperform” rating and set a $265.00 price objective on shares of NVIDIA in a research report on Thursday, February 26th. Raymond James Financial reissued a “strong-buy” rating and set a $330.00 price objective on shares of NVIDIA in a research report on Thursday, May 21st. UBS Group boosted their price objective on NVIDIA from $275.00 to $280.00 and gave the stock a “buy” rating in a research report on Thursday, May 21st. Craig Hallum boosted their price objective on NVIDIA from $245.00 to $275.00 and gave the stock a “buy” rating in a research report on Thursday, May 21st. Finally, Rosenblatt Securities reissued a “buy” rating and set a $325.00 price objective on shares of NVIDIA in a research report on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and an average price target of $305.67.
NVIDIA Stock Up 3.5%
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 stock has a market capitalization of $5.14 trillion, a P/E ratio of 32.53, a price-to-earnings-growth ratio of 0.46 and a beta of 2.22. The firm has a 50 day moving average of $206.84 and a 200-day moving average of $191.41.
NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The firm had revenue of $81.62 billion for the quarter, compared to analyst estimates of $78.42 billion. During the same period in the previous year, the company posted $0.81 earnings per share. The company’s quarterly revenue was up 85.2% compared to the same quarter last year. On average, equities research analysts expect that NVIDIA Corporation will post 8.65 earnings per share for the current fiscal year.
NVIDIA Increases Dividend
The company also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Thursday, June 4th will be paid a dividend of $0.25 per share. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a yield of 0.5%. The ex-dividend date is Thursday, June 4th. NVIDIA’s dividend payout ratio is presently 15.31%.
NVIDIA declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, May 20th that permits the company to buyback $80.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s leadership believes its stock is undervalued.
Insider Activity
In related news, Director Mark A. Stevens sold 500,000 shares of the business’s stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $219.83, for a total transaction of $109,915,000.00. Following the transaction, the director directly owned 6,399,771 shares in the company, valued at $1,406,861,658.93. The trade was a 7.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Ajay K. Puri sold 300,000 shares of the business’s stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $182.25, for a total value of $54,675,000.00. Following the transaction, the executive vice president owned 3,018,547 shares in the company, valued at $550,130,190.75. This represents a 9.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 1,619,457 shares of company stock valued at $332,073,643. Corporate insiders own 3.94% of the company’s stock.
Institutional Investors Weigh In On NVIDIA
Several large investors have recently modified their holdings of NVDA. Lifetime Wealth Management P.C. bought a new stake in shares of NVIDIA in the 4th quarter valued at approximately $26,000. Longview Financial Advisors Inc. bought a new stake in shares of NVIDIA in the 1st quarter valued at approximately $27,000. Longfellow Investment Management Co. LLC grew its stake in shares of 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 purchasing an additional 67 shares during the period. Phillip James Consulting Co. bought a new stake in shares of NVIDIA in the 1st quarter valued at approximately $40,000. Finally, Spurstone Advisory Services LLC bought a new stake in shares of NVIDIA in the 2nd quarter valued at approximately $40,000. 65.27% of the stock is currently owned by 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.
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