Zacks Research Downgrades NVIDIA (NASDAQ:NVDA) to Hold

NVIDIA (NASDAQ:NVDA) was downgraded by stock analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued on Thursday,Zacks.com reports.

Several other research firms have also recently issued reports on NVDA. Susquehanna reissued a “positive” rating and issued a $275.00 price objective (up from $250.00) on shares of NVIDIA in a research report on Tuesday, May 12th. Citigroup began coverage on shares of NVIDIA in a research report on Wednesday, April 15th. They issued a “buy” rating for the company. Jefferies Financial Group reaffirmed a “buy” rating and issued a $300.00 price target (up from $275.00) on shares of NVIDIA in a research report on Thursday. Fundamental Research set a $218.00 price target on shares of NVIDIA in a research report on Thursday, February 26th. Finally, Mizuho set a $300.00 price target on shares of NVIDIA in a research report on Thursday. Three investment 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 stock. According to MarketBeat, NVIDIA has a consensus rating of “Buy” and a consensus target price of $303.27.

NVIDIA Price Performance

NVIDIA stock opened at $215.33 on Thursday. The stock has a market cap of $5.21 trillion, a price-to-earnings ratio of 32.98, a price-to-earnings-growth ratio of 0.68 and a beta of 2.25. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 3.24. NVIDIA has a 1 year low of $129.16 and a 1 year high of $236.54. The firm has a 50-day moving average of $196.10 and a two-hundred day moving average of $189.06.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data 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. The company had revenue of $81.62 billion during the quarter, compared to analysts’ expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm’s quarterly revenue was up 85.2% on a year-over-year basis. During the same period in the previous year, the company earned $0.81 EPS. On average, research analysts forecast that NVIDIA will post 7.88 earnings per share for the current year.

NVIDIA declared that its Board of Directors has initiated a share buyback plan on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in outstanding 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 management believes its stock is undervalued.

Insider Transactions at NVIDIA

In related news, Director Aarti S. Shah sold 19,000 shares of the stock in a transaction on Thursday, March 19th. The shares were sold at an average price of $176.71, for a total transaction of $3,357,490.00. Following the sale, the director directly owned 36,007 shares of the company’s stock, valued at approximately $6,362,796.97. This represents a 34.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Mark A. Stevens sold 221,682 shares of the stock in a transaction on Friday, March 20th. The stock was sold at an average price of $173.68, for a total transaction of $38,501,729.76. Following the sale, the director directly owned 7,399,771 shares in the company, valued at $1,285,192,227.28. This trade represents a 2.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 906,336 shares of company stock valued at $162,802,518. 4.17% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On NVIDIA

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Lifetime Wealth Management P.C. purchased a new position in NVIDIA during the fourth quarter valued at $26,000. Longview Financial Advisors Inc. purchased a new position in NVIDIA during the first quarter valued at $27,000. Longfellow Investment Management Co. LLC lifted its holdings in NVIDIA by 47.9% during the second 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 in the last quarter. Phillip James Consulting Co. purchased a new position in NVIDIA during the first quarter valued at $40,000. Finally, Spurstone Advisory Services LLC purchased a new position in NVIDIA during the second quarter valued at $40,000. 65.27% of the stock is owned by hedge funds and other institutional investors.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA delivered a record quarter with massive revenue growth, strong guidance, and record data center sales. The Tech Download: What you might have missed in Nvidia’s earnings — a $200 billion opportunity and edge computing
• Positive Sentiment: The company raised its dividend sharply and approved an $80 billion buyback, signaling confidence in future cash generation. Nvidia Just Raised Its Dividend By 2,400% — and That Wasn’t Even the Biggest News From Its Earnings Report
• Positive Sentiment: Wall Street remains broadly bullish, with multiple analysts raising price targets after earnings. Nvidia stock continues to struggle after earnings, but analysts remain firmly bullish
• Neutral Sentiment: Despite the strong report, the market seems to be digesting the results rather than rewarding them, suggesting investors may think the bar was already very high. Nvidia Stock Misses Out on Friday’s Rally. Here’s How Much Traders See It Moving Next Week
• Negative Sentiment: Some investors remain worried about valuation, competition, and the possibility that AI spending growth could slow from current extreme levels. Why Nvidia Stock Is Barely Moving After Earnings Crushed Expectations

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.