NVIDIA (NASDAQ:NVDA) Stock Price Up 2.8% – Should You Buy?

NVIDIA Corporation (NASDAQ:NVDA) traded up 2.8% during trading on Friday. The stock traded as high as $194.90 and last traded at $186.64. 178,352,554 shares were traded during mid-day trading, an increase of 20% from the average session volume of 149,147,422 shares. The stock had previously closed at $181.60.

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

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the stock. Royal Bank Of Canada upped their target price on shares of NVIDIA from $300.00 to $330.00 and gave the stock an “outperform” rating in a research note on Thursday, August 27th. Needham & Company LLC restated a “buy” rating and issued a $300.00 price target on shares of NVIDIA in a research note on Wednesday, October 21st. Wedbush boosted their price target on shares of NVIDIA from $330.00 to $345.00 and gave the stock an “outperform” rating in a research note on Thursday, August 27th. Oppenheimer set a $315.00 price objective on NVIDIA and gave the stock an “outperform” rating in a research report on Thursday, August 27th. Finally, President Capital increased their price objective on NVIDIA from $295.00 to $330.00 in a research note on Thursday, August 27th. Five equities research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, NVIDIA presently has an average rating of “Buy” and an average price target of $318.85.

NVIDIA Trading Up 2.8%

The company’s fifty day moving average is $219.80 and its two-hundred day moving average is $204.53. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The stock has a market cap of $4.50 trillion, a price-to-earnings ratio of 23.60, a PEG ratio of 1.43 and a beta of 2.21.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company had revenue of $96.22 billion during the quarter, compared to analysts’ expectations of $92.27 billion. During the same quarter in the previous year, the business posted $1.05 EPS. The firm’s revenue was up 105.9% on a year-over-year basis. On average, research analysts predict that NVIDIA Corporation will post 9.30 EPS for the current fiscal year.

NVIDIA Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were given 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 was Thursday, September 10th. NVIDIA’s payout ratio is 12.64%.

NVIDIA declared that its Board of Directors has approved a share repurchase program on Monday, September 28th that permits the company to repurchase $150 billion in outstanding shares. This buyback authorization permits the computer hardware maker to buy up to 2.8% of its shares through open market purchases. Stock buyback programs are often an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In related news, CFO Colette Kress sold 34,918 shares of the stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total value of $7,648,787.90. Following the transaction, the chief financial officer owned 765,103 shares of the company’s stock, valued at $167,595,812.15. This represents a 4.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy Teter sold 30,460 shares of the firm’s stock in a transaction on Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the sale, the executive vice president owned 2,687,660 shares in the company, valued at approximately $598,810,648. This represents a 1.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 1,766,118 shares of company stock worth $399,450,353. Corporate insiders own 3.94% of the company’s stock.

Institutional Investors Weigh In On NVIDIA

Institutional investors have recently added to or reduced their stakes in the business. State Street Corp grew its position in shares of NVIDIA by 1.6% in 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 buying an additional 15,897,836 shares during the last quarter. Bank of America Corp DE lifted its position in NVIDIA by 2.2% in the second quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker’s stock valued at $39,090,956,000 after acquiring an additional 4,165,875 shares during the last quarter. Amundi lifted its position in NVIDIA by 10.4% in the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock valued at $23,329,141,000 after acquiring an additional 12,575,177 shares during the last quarter. Deutsche Bank AG lifted its position in NVIDIA by 2.3% in the second quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker’s stock valued at $18,399,108,000 after acquiring an additional 2,045,101 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its stake in NVIDIA by 0.6% in the first quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker’s stock valued at $16,479,126,000 after acquiring an additional 555,221 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.

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.