NVIDIA (NASDAQ:NVDA) Downgraded by Wall Street Zen to "Buy"

Key Points

• Wall Street Zen downgraded NVIDIA from “strong buy” to “buy,” though the broader analyst consensus remains “Buy,” with 49 Buy and five Strong Buy ratings and an average price target of $321.47.
• NVIDIA exceeded quarterly expectations with $2.22 in EPS versus $2.09 estimated and $96.22 billion in revenue versus $92.27 billion expected; revenue rose 105.9% year over year.
• The company authorized a $150 billion share-repurchase program, while insiders sold about $399.5 million of stock during the latest quarter.

NVIDIA (NASDAQ:NVDA - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

NVDA has been the subject of a number of other reports. Phillip Securities raised their price target on NVIDIA from $285.00 to $300.00 and gave the stock a "buy" rating in a report on Monday, August 31st. UBS Group reiterated a "buy" rating on shares of NVIDIA in a research note on Friday, October 9th. Daiwa Securities Group reduced their price target on shares of NVIDIA from $255.00 to $245.00 and set an "outperform" rating for the company in a research report on Thursday, September 17th. Yorkville Ives started coverage on NVIDIA in a research note on Tuesday, October 6th. They set an "outperform" rating and a $300.00 price objective for the company. Finally, The Goldman Sachs Group reaffirmed a "buy" rating on shares of NVIDIA in a research note on Wednesday. Five analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Buy" and an average target price of $321.47.

NVIDIA Stock Down 0.6%

NVDA opened at $210.96 on Friday. NVIDIA has a fifty-two week low of $164.27 and a fifty-two week high of $243.37. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The firm's fifty day moving average price is $222.58 and its two-hundred day moving average price is $212.56. The company has a market capitalization of $5.08 trillion, a P/E ratio of 26.67, a P/E/G ratio of 1.63 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.09 by $0.13. The firm had revenue of $96.22 billion during the quarter, compared to analysts' expectations of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The company's revenue was up 105.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.05 EPS. On average, analysts anticipate that NVIDIA will post 9.30 EPS for the current year.

NVIDIA announced that its board has authorized a share buyback plan on Monday, September 28th that allows the company to buy back $150.00 billion in shares. This repurchase authorization allows the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Stock repurchase plans are usually a sign that the company's management believes its shares are undervalued.

Insider Buying and Selling

In related news, Director Mark Stevens sold 622,239 shares of the business's stock in a transaction that occurred 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 sale, the director directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Timothy Teter sold 30,460 shares of the business's stock in a transaction 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 transaction, 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 1,766,118 shares of company stock worth $399,450,353. 3.94% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Centerpoint Advisory Group raised its stake in shares of NVIDIA by 0.4% during the third quarter. Centerpoint Advisory Group now owns 38,583 shares of the computer hardware maker's stock worth $8,812,000 after buying an additional 160 shares during the last quarter. Revolve Wealth Partners LLC boosted its stake in NVIDIA by 3.4% in the 3rd quarter. Revolve Wealth Partners LLC now owns 82,311 shares of the computer hardware maker's stock valued at $18,798,000 after purchasing an additional 2,680 shares during the period. Brandywine Oak Private Wealth LLC increased its holdings in NVIDIA by 0.6% in the 3rd quarter. Brandywine Oak Private Wealth LLC now owns 74,199 shares of the computer hardware maker's stock valued at $16,945,000 after buying an additional 459 shares during the period. Randolph Co Inc acquired a new position in shares of NVIDIA during the third quarter worth $405,000. Finally, Argyle Capital Partners LLC lifted its holdings in shares of NVIDIA by 1.7% during the third quarter. Argyle Capital Partners LLC now owns 13,811 shares of the computer hardware maker's stock worth $3,154,000 after purchasing an additional 225 shares during the period. Institutional investors own 65.27% of the company's stock.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Several investment analyses remain bullish on NVIDIA’s long-term outlook. Its CUDA software ecosystem, scale, high margins and deep customer relationships are viewed as a stronger moat than competitors such as Broadcom and Lam Research. Some analysts believe the shares could still double over the next five to 10 years even if growth moderates. Prediction: Nvidia Will Outperform Broadcom Over the Next 5 Years
• Positive Sentiment: NVIDIA is broadening its opportunity beyond GPUs through CPUs, networking, AI factories, industrial AI, autonomous driving and quantum-computing interfaces. Partnerships involving Pony.ai, inDrive, Schneider Electric and HPE could support additional demand for its full-stack platform. Pony AI, NVIDIA Take Their Robotaxi Ambitions to a New Market
• Positive Sentiment: Erste Group modestly raised its fiscal 2027 and 2028 EPS forecasts, while other commentary highlights NVIDIA’s faster growth, stronger margins and relatively attractive valuation compared with some AI semiconductor peers. Brokers Suggest Investing in Nvidia
• Neutral Sentiment: Some analysts argue NVIDIA may become a relative “safe haven” within the AI trade because of its dependable earnings and dominant position, but this is an investor-rotation thesis rather than a new financial result or confirmed catalyst. Can Nvidia's Stock Become a Safe Haven?
• Negative Sentiment: Seaport Research reiterated a bearish view, citing mounting competition, strategic tension in NVIDIA’s business and substantial financial commitments tied to the AI buildout. This bearish call is the clearest company-specific pressure on the shares. Two Critical Nvidia Stock Flaws
• Negative Sentiment: The recent decline reflects broader concern that hyperscalers and neocloud operators may struggle to finance the hundreds of billions of dollars required for AI data centers. High borrowing costs, funding gaps and possible customer spending discipline are pressuring the entire AI trade, including NVIDIA. Why Nvidia Stock Is Down Over 4%?

About NVIDIA

NVIDIA Corporation NASDAQ: NVDA is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.

The company's products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.

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