NVIDIA (NASDAQ:NVDA) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded NVIDIA from “strong buy” to “buy,” though broader analyst sentiment remains positive with a consensus “buy” rating and $324.14 target price.
• NVIDIA reported strong quarterly results, including $2.22 in EPS and $96.22 billion in revenue, with revenue up 105.9% year over year and exceeding analyst estimates.
• Insiders sold approximately $399.5 million of stock over the past 90 days under pre-arranged trading plans, while institutional investors increased their holdings and own 65.27% of the company.

NVIDIA (NASDAQ:NVDA - Get Free Report) was downgraded by Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report released on Saturday, Wall Street Zen reports.

NVDA has been the subject of several other reports. Deutsche Bank Aktiengesellschaft reissued a "buy" rating on shares of NVIDIA in a research note on Monday, August 31st. Raymond James Financial set a $515.00 price objective on NVIDIA and gave the company a "strong-buy" rating in a research note on Thursday, August 27th. Wedbush boosted their target price on NVIDIA from $330.00 to $345.00 and gave the company an "outperform" rating in a research note on Thursday, August 27th. Itau BBA Securities dropped their target price on NVIDIA from $256.00 to $218.00 in a report on Wednesday, June 24th. Finally, Needham & Company LLC restated a "buy" rating and set a $300.00 price target on shares of NVIDIA in a research report on Friday, September 4th. Four investment analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Buy" and a consensus target price of $324.14.

NVIDIA Stock Up 0.2%

Shares of NASDAQ NVDA opened at $225.07 on Friday. NVIDIA has a one year low of $164.27 and a one year high of $236.54. 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 50 day simple moving average is $216.52 and its two-hundred day simple moving average is $205.86. The stock has a market capitalization of $5.42 trillion, a P/E ratio of 28.45, a PEG ratio of 1.73 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA - Get Free Report) 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 firm had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. During the same period last year, the firm posted $1.05 earnings per share. The business's revenue was up 105.9% compared to the same quarter last year. As a group, analysts expect that NVIDIA will post 9.25 EPS for the current fiscal year.

Insider Buying and Selling

In other NVIDIA news, EVP Timothy S. Teter sold 30,460 shares of the company'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 completion of the transaction, the executive vice president owned 2,687,660 shares of the company's stock, valued at $598,810,648. This represents a 1.12% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 34,918 shares of the stock in a transaction that occurred 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 completion of the sale, the chief financial officer owned 765,103 shares of the company's stock, valued at approximately $167,595,812.15. This trade represents a 4.36% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,766,118 shares of company stock valued at $399,450,353 over the last ninety days. 3.94% of the stock is owned by insiders.

Hedge Funds Weigh In On NVIDIA

Hedge funds and other institutional investors have recently made changes to their positions in the business. Envestnet Portfolio Solutions Inc. raised its stake in NVIDIA by 6.7% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 997,308 shares of the computer hardware maker's stock worth $199,533,000 after acquiring an additional 62,828 shares during the period. Envestnet Asset Management Inc. lifted its holdings in NVIDIA by 3.7% in the second quarter. Envestnet Asset Management Inc. now owns 23,901,229 shares of the computer hardware maker's stock worth $4,782,365,000 after acquiring an additional 856,390 shares during the last quarter. State Street Corp boosted its stake in NVIDIA by 1.6% in the second 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 acquiring an additional 15,897,836 shares during the period. Wellington Altus USA Inc. boosted its stake in NVIDIA by 8.0% in the second quarter. Wellington Altus USA Inc. now owns 14,583 shares of the computer hardware maker's stock valued at $2,918,000 after acquiring an additional 1,081 shares during the period. Finally, Anchor Investment Management LLC grew its holdings in shares of NVIDIA by 4.7% during the second quarter. Anchor Investment Management LLC now owns 90,989 shares of the computer hardware maker's stock valued at $18,206,000 after purchasing an additional 4,049 shares during the last quarter. 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: Elon Musk said xAI’s Colossus 2 data center could more than double its NVIDIA chip count by year-end. The facility reportedly already uses 110,000 GB200 and 440,000 GB300 GPUs, reinforcing expectations for large hyperscaler and AI-lab orders. xAI Colossus 2 chip deployment article
• Positive Sentiment: Industry commentary indicates NVIDIA GPU demand is so strong that even poorly built cloud infrastructure can attract customers at healthy margins. This supports the view that AI compute demand still exceeds available supply. NVIDIA GPU demand article
• Positive Sentiment: RMX Industries placed an order for NVIDIA H200 GPU systems through Technologent, providing another example of demand for NVIDIA’s data-center products. Super Micro’s shipment of Vera Rubin NVL72 racks also signals that next-generation systems are reaching customers. RMX H200 purchase order article
• Positive Sentiment: Analysts continue to favor NVIDIA over competing AI-chip names such as Micron and Marvell, citing broader AI exposure, stronger margins and higher returns on equity. Bullish coverage also points to a potential Vera Rubin volume ramp and substantial cloud infrastructure backlogs. Micron versus NVIDIA analysis
• Neutral Sentiment: Extended U.S.-China trade discussions may eventually improve NVIDIA’s China opportunity, but export restrictions remain unresolved. The stock is also testing important technical levels after a strong recent advance. NVIDIA technical and China outlook article
• Negative Sentiment: EVP Timothy Teter sold approximately $6.8 million of NVIDIA shares under a pre-arranged Rule 10b5-1 plan. The sale was only about 1.1% of his holdings and does not indicate a fundamental change, but it may weigh on sentiment alongside broader reports of insider profit-taking. NVIDIA insider sale article
• Negative Sentiment: Higher memory costs are expected to pressure NVIDIA’s gross margins, while rising Treasury yields could compress the valuation of high-growth technology stocks. Investors are therefore balancing exceptional AI demand against increasing supply-chain costs and macroeconomic risk.

About NVIDIA

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company's offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.