NVIDIA (NASDAQ:NVDA) Shares Up 3.7% – Should You Buy?

Shares of NVIDIA Corporation (NASDAQ:NVDA) were up 3.7% on Wednesday . The stock traded as high as $205.16 and last traded at $204.12. 145,981,826 shares changed hands during trading, a decline of 14% from the average daily volume of 168,842,922 shares. The stock had previously closed at $196.93.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Cerebras CEO Andrew Feldman said AI demand is still “booked” months in advance, reinforcing the view that compute suppliers like NVIDIA remain in a strong supply-constrained cycle.
• Positive Sentiment: NVIDIA and Hugging Face expanded their robotics collaboration by integrating Isaac AI tools into LeRobot, which supports NVIDIA’s push into physical AI and automation.
• Positive Sentiment: Reuters reported that supplier King Yuan Electronics plans to invest up to $1.4 billion in a U.S. facility, underscoring supply-chain investment around NVIDIA’s ecosystem.
• Positive Sentiment: Multiple articles highlighted bullish valuation takes, including claims that NVIDIA is trading at its cheapest levels in years and may be undervalued relative to its AI growth prospects.
• Neutral Sentiment: Market chatter around SK hynix’s large U.S. listing and broader memory-bottleneck commentary points to continued AI supply-chain momentum, but the direct impact on NVDA is indirect.
• Neutral Sentiment: Reports about Meta building its own AI chip and other hyperscalers pursuing custom silicon add competitive noise, though investors appear to be treating NVIDIA’s platform advantage as intact for now.
• Negative Sentiment: Some coverage warned that AI companies’ borrowing and capital-spending spree could become a risk, raising questions about the durability of the current infrastructure boom.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the company. Itau BBA Securities reduced their target price on NVIDIA from $256.00 to $218.00 in a research report on Wednesday, June 24th. Daiwa Securities Group boosted their target price on shares of NVIDIA from $215.00 to $255.00 and gave the stock an “outperform” rating in a research report on Friday, May 22nd. UBS Group upped their price target on shares of NVIDIA from $275.00 to $280.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. KeyCorp set a $310.00 price target on shares of NVIDIA and gave the stock an “overweight” rating in a report on Thursday, May 21st. Finally, Royal Bank Of Canada set a $280.00 price objective on shares of NVIDIA in a research note on Thursday, May 21st. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, NVIDIA presently has a consensus rating of “Buy” and an average price target of $303.84.

NVIDIA Stock Performance

The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The firm’s 50 day simple moving average is $209.45 and its 200 day simple moving average is $194.30. The firm has a market capitalization of $5.10 trillion, a price-to-earnings ratio of 32.17, a PEG ratio of 0.45 and a beta of 2.21.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating the consensus estimate of $1.76 by $0.11. The business 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 business’s revenue for the quarter was up 85.2% on a year-over-year basis. During the same period in the prior year, the firm earned $0.81 EPS. Sell-side analysts forecast that NVIDIA Corporation will post 8.79 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were given a dividend of $0.25 per share. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $1.00 annualized dividend and a yield of 0.5%. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s payout ratio is 15.31%.

NVIDIA declared that its board has authorized a share buyback plan on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in shares. This buyback authorization authorizes the computer hardware maker to buy up to 1.5% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board believes its stock is undervalued.

Insider Activity

In other news, Director John Dabiri sold 625 shares of the business’s 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 completion of the transaction, the director owned 14,163 shares of the company’s stock, valued at $3,030,882. The trade was a 4.23% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of the company’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 completion of the sale, the director owned 116,135 shares in the company, valued at $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 sold a total of 1,901,125 shares of company stock valued at $410,583,015 in the last quarter. 3.94% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On NVIDIA

Several hedge funds have recently bought and sold shares of the stock. Norges Bank acquired a new position in shares of NVIDIA in the fourth quarter worth about $62,244,133,000. J. Stern & Co. LLP grew its position in shares of NVIDIA by 13,709.1% during the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock valued at $23,454,297,000 after acquiring an additional 124,849,603 shares during the period. Cardano Risk Management B.V. increased its stake in shares of NVIDIA by 896.4% in the 4th quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker’s stock valued at $14,570,119,000 after purchasing an additional 70,283,539 shares in the last quarter. Capital Research Global Investors increased its stake in shares of NVIDIA by 16.1% in the 3rd quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker’s stock valued at $30,855,564,000 after purchasing an additional 22,896,705 shares in the last quarter. Finally, Laurel Wealth Advisors LLC raised its holdings in NVIDIA by 15,496.1% in the 2nd quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker’s stock worth $3,454,534,000 after purchasing an additional 21,725,326 shares during the period. Hedge funds and other institutional investors own 65.27% of the company’s stock.

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.