NVIDIA (NASDAQ:NVDA) Upgraded at Zacks Research

Key Points

• Zacks Research upgraded NVIDIA from “Hold” to “Strong Buy,” adding to an overwhelmingly positive analyst outlook. The stock has an average “Buy” rating and a consensus price target of $324.34.
• NVIDIA reported quarterly EPS of $2.22, beating estimates of $2.09, while revenue reached $96.22 billion—up 105.9% year over year and above expectations.
• Insiders sold 1.74 million shares worth approximately $392.7 million over the past 90 days, including significant sales by an executive vice president and a director.

NVIDIA (NASDAQ:NVDA - Get Free Report) was upgraded by stock analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued on Monday, Zacks reports.

Other analysts have also recently issued research reports about the company. William Blair reissued an "outperform" rating on shares of NVIDIA in a research report on Tuesday, June 2nd. KGI Securities upped their target price on NVIDIA from $335.00 to $345.00 in a research report on Thursday, August 27th. Citigroup reaffirmed a "buy" rating and set a $315.00 price target (up from $300.00) on shares of NVIDIA in a research note on Thursday, August 27th. UBS Group set a $300.00 price target on NVIDIA and gave the company a "buy" rating in a report on Thursday, August 27th. Finally, Oppenheimer set a $315.00 price target on NVIDIA and gave the company an "outperform" rating in a research note on Thursday, August 27th. Four analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, NVIDIA currently has an average rating of "Buy" and a consensus target price of $324.34.

NVIDIA Stock Performance

Shares of NVDA opened at $228.87 on Monday. The company has a market capitalization of $5.52 trillion, a PE ratio of 28.93, a PEG ratio of 1.76 and a beta of 2.22. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The company's 50 day moving average price is $215.47 and its 200 day moving average price is $205.09. NVIDIA has a 52 week low of $164.27 and a 52 week high of $236.54.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 analyst estimates of $92.27 billion. During the same quarter last year, the business posted $1.05 EPS. The company's revenue for the quarter was up 105.9% on a year-over-year basis. Research analysts expect that NVIDIA will post 9.25 EPS for the current fiscal year.

Insider Activity at NVIDIA

In other NVIDIA news, EVP Timothy S. Teter sold 30,000 shares of the company's stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $217.88, for a total value of $6,536,400.00. Following the completion of the transaction, the executive vice president owned 2,687,660 shares of the company's stock, valued at $585,587,360.80. This represents a 1.10% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of NVIDIA stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the sale, the director directly owned 2,336,531 shares in the company, valued at $541,187,310.22. The trade was a 21.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 1,735,658 shares of company stock worth $392,663,865. Company insiders own 3.94% of the company's stock.

Institutional Investors Weigh In On NVIDIA

A number of institutional investors have recently bought and sold shares of NVDA. Montgomery Financial Services LLC bought a new stake in shares of NVIDIA during the second quarter valued at approximately $28,000. Lifetime Wealth Management P.C. purchased a new stake in shares of NVIDIA during the 4th quarter worth $26,000. Longview Financial Advisors Inc. bought a new stake in shares of NVIDIA in the 1st quarter valued at about $27,000. Phillip James Consulting Co. acquired a new stake in NVIDIA in the first quarter valued at approximately $40,000. Finally, Bard Associates Inc. boosted its position in shares of NVIDIA by 8,866.7% in the 2nd quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker's stock worth $54,000 after purchasing an additional 266 shares in the last quarter. Institutional investors and hedge funds own 65.27% of the company's stock.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: CEO Jensen Huang pushed back against AI “doomsday” scenarios and argued that existing laws are sufficient, helping ease concerns that overly restrictive regulation could slow AI deployment. Nvidia’s Jensen Huang rejects AI doomsday fears
• Positive Sentiment: Analysts and financial commentators continue to highlight NVIDIA’s earnings momentum, broad AI hardware and networking portfolio, and projected long-term demand. Zacks restored the stock to a Rank #1 “Strong Buy,” while another report cited potential upside from positive earnings revisions. Bull of the Day: NVIDIA Corp.
• Positive Sentiment: Potentially improved access to China is a major catalyst. NVIDIA’s latest forecast reportedly assumes no data-center compute sales to China, leaving upside if the upcoming Trump-Xi discussions lead to licenses or expanded chip shipments. Nvidia’s forecast assumes no data center chip sales to China
• Positive Sentiment: New ecosystem initiatives reinforce NVIDIA’s expansion beyond GPUs. QAD | Redzone plans to integrate NVIDIA technology into manufacturing intelligence, while NVIDIA’s reported roughly $12.9 billion Hugging Face acquisition would add a major developer, model and dataset ecosystem. QAD Redzone Accelerates Manufacturing Intelligence with NVIDIA
• Neutral Sentiment: Investors are increasingly focused on AI infrastructure bottlenecks such as high-bandwidth memory, optical networking, power and cooling. Rising component costs could pressure NVIDIA’s margins, but may also validate demand and strengthen the position of critical suppliers such as Micron, Coherent and Lumentum. NVIDIA just named AI’s next bottleneck
• Negative Sentiment: AMD’s rapid advance is intensifying competitive pressure. Large OpenAI and Oracle commitments, rising data-center revenue and potential pricing power suggest hyperscalers are diversifying away from a single accelerator supplier. AMD chips away at NVIDIA’s AI throne
• Negative Sentiment: Other reports warn that higher interest rates, concentrated AI revenue, expensive infrastructure financing and persistent bubble concerns could weigh on NVIDIA’s richly valued shares. NVIDIA also missed the strongest portion of a Meta-driven chip rally, underscoring lingering growth expectations.

NVIDIA Company Profile

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.

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