NVIDIA Corporation (NASDAQ:NVDA) Stock Rated “Buy” by Wall Street Analysts

Shares of NVIDIA Corporation (NASDAQ:NVDA) have received an average rating of “Buy” from the fifty-five ratings firms that are presently covering the firm, Marketbeat Ratings reports. One investment analyst has rated the stock with a hold recommendation, forty-nine have given a buy recommendation and five have given a strong buy recommendation to the company. The average 1-year target price among brokerages that have covered the stock in the last year is $321.89.

NVDA has been the subject of a number of research analyst reports. BNP Paribas Exane reaffirmed an “outperform” rating and set a $345.00 price objective on shares of NVIDIA in a research report on Monday, October 5th. Daiwa Securities Group reduced their target price on shares of NVIDIA from $255.00 to $245.00 and set an “outperform” rating for the company in a research note on Thursday, September 17th. Evercore set a $465.00 target price on NVIDIA and gave the stock an “outperform” rating in a research report on Thursday, August 27th. Truist Financial lifted their target price on NVIDIA from $307.00 to $346.00 and gave the stock a “buy” rating in a research report on Thursday, August 27th. Finally, Benchmark restated a “buy” rating and set a $335.00 price target on shares of NVIDIA in a research note on Thursday, August 27th.

NVIDIA Price Performance

NASDAQ:NVDA opened at $221.30 on Friday. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. NVIDIA has a one year low of $164.27 and a one year high of $243.37. The company has a fifty day moving average price of $223.43 and a 200 day moving average price of $210.73. The stock has a market cap of $5.33 trillion, a P/E ratio of 27.98, a PEG ratio of 1.77 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.13. The company had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business’s quarterly revenue was up 105.9% on a year-over-year basis. During the same period last year, the business posted $1.05 EPS. Analysts anticipate that NVIDIA will post 9.25 earnings per share for the current year.

NVIDIA announced that its Board of Directors has approved a share buyback program on Monday, September 28th that permits the company to repurchase $150.00 billion in outstanding shares. This repurchase authorization permits the computer hardware maker to repurchase up to 2.8% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s management believes its shares are undervalued.

NVIDIA Announces Dividend

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

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA announced a five-year, $250 million compute commitment to support U.K. AI safety and security research. The initiative strengthens NVIDIA’s relationships with governments, universities and AI developers while promoting its hardware and software ecosystem. NVIDIA pledges $250 million to boost UK AI safety research
• Positive Sentiment: New ecosystem announcements highlighted continued demand for NVIDIA technology. LSEG is using NVIDIA GPUs to accelerate historical market-data processing, while NVIDIA introduced tools including cuPotential for molecular simulation and expanded collaborations in AI-defined chip manufacturing. LSEG teams up with NVIDIA for faster market data processing
• Positive Sentiment: State Street launched a sector ETF designed to give NVIDIA a 20.93% allocation, above the 15.41% weighting in its comparable fund, potentially creating incremental demand for NVDA shares. New State Street Sector ETFs Give Biggest Stocks Full Weight
• Neutral Sentiment: CEO Jensen Huang said NVIDIA would stop supplying chips to customers developing unsafe AI systems. The stance may improve regulatory and reputational positioning, although broader AI-safety concerns could increase scrutiny of the company and industry. Nvidia, Anthropic Weigh In On AI Safeguards
• Negative Sentiment: Investors are assessing competitive threats from Microsoft’s Maia 300 architecture and Intel’s lower-cost, air-cooled Crescent Island inference GPU. Custom accelerators and cheaper inference solutions could pressure NVIDIA’s pricing, growth assumptions and market share over time. Microsoft Just Unveiled a Brand-New AI Chip
• Negative Sentiment: IDC reportedly estimates NVIDIA’s China AI-chip market share has fallen to 34% as Huawei gains ground, underscoring export restrictions and rising local competition. Separately, investor Michael Burry is betting against chip stocks, reinforcing valuation and AI-spending concerns. NVIDIA’s China AI chip market share falls to 34%

Insider Transactions at NVIDIA

In other news, EVP Timothy Teter sold 30,460 shares of the business’s stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the sale, the executive vice president directly owned 2,687,660 shares in the company, valued at approximately $598,810,648. The trade was a 1.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of the company’s stock in a transaction on Friday, September 4th. The shares were sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the transaction, the director owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 1,766,118 shares of company stock valued at $399,450,353. 3.94% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On NVIDIA

Several institutional investors and hedge funds have recently bought and sold shares of the business. J. Stern & Co. LLP increased its position 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 purchasing an additional 124,849,603 shares during the period. Jupiter Topco LLC bought a new stake in NVIDIA during the 2nd quarter worth about $16,156,076,000. Van ECK Associates Corp lifted its position in NVIDIA by 34.7% during the 2nd quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker’s stock valued at $15,176,771,000 after purchasing an additional 19,522,304 shares during the period. State Street Corp lifted its position in NVIDIA by 1.6% during 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 during the period. Finally, Amundi lifted its position in NVIDIA by 10.4% during the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock valued at $23,329,141,000 after purchasing an additional 12,575,177 shares during the period. Institutional investors own 65.27% of the company’s stock.

NVIDIA Company Profile

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.