NVIDIA (NASDAQ:NVDA) Upgraded to Strong-Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded NVIDIA to “strong buy” from “buy,” while broader analyst sentiment remains positive: five analysts rate it a Strong Buy and 49 rate it a Buy. The average price target is $321.89.
• NVIDIA reported quarterly results above expectations, with EPS of $2.22 versus the $2.09 consensus and revenue of $96.22 billion versus $92.27 billion expected. Revenue grew 105.9% year over year, supported by strong AI and data-center demand.
• The company authorized a $150 billion stock-repurchase plan, allowing it to buy back up to 2.8% of outstanding shares. However, recent insider selling and concerns about potentially debt-funded, peak AI spending introduce some caution.

NVIDIA (NASDAQ:NVDA - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research note issued on Saturday, Wall Street Zen reports.

Several other equities research analysts have also issued reports on the company. Zacks Research raised NVIDIA from a "hold" rating to a "strong-buy" rating in a research report on Monday, September 21st. Stifel Nicolaus set a $315.00 price objective on shares of NVIDIA in a report on Thursday, August 27th. KGI Securities boosted their target price on shares of NVIDIA from $335.00 to $345.00 in a research note on Thursday, August 27th. TD Cowen reissued a "buy" rating on shares of NVIDIA in a report on Tuesday, August 18th. Finally, HSBC raised their price target on shares of NVIDIA from $360.00 to $365.00 in a research report on Thursday, August 27th. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Buy" and an average target price of $321.89.

NVIDIA Stock Down 0.5%

Shares of NVIDIA stock opened at $229.28 on Friday. The business has a 50-day moving average price of $222.66 and a 200 day moving average price of $209.43. NVIDIA has a fifty-two week low of $164.27 and a fifty-two week high of $243.37. The firm has a market cap of $5.53 trillion, a P/E ratio of 28.99, a P/E/G ratio of 1.78 and a beta of 2.22. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping analysts' consensus estimates of $2.09 by $0.13. The company had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. NVIDIA's quarterly revenue was up 105.9% compared to the same quarter last year. During the same quarter last year, the business posted $1.05 EPS. On average, sell-side analysts forecast that NVIDIA will post 9.25 earnings per share for the current fiscal year.

NVIDIA announced that its board has approved a stock repurchase 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 buy up to 2.8% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at NVIDIA

In other NVIDIA news, Director Mark Stevens sold 622,239 shares of NVIDIA stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the sale, the director owned 2,336,531 shares of the company's stock, valued at $541,187,310.22. The trade was a 21.03% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, 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 completion of the transaction, the chief financial officer directly owned 765,103 shares of the company's stock, valued at approximately $167,595,812.15. The trade was a 4.36% decrease in their position. 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. Insiders have sold 1,766,118 shares of company stock valued at $399,450,353 in the last quarter. Corporate insiders own 3.94% of the company's stock.

Hedge Funds Weigh In On NVIDIA

Several large investors have recently bought and sold shares of NVDA. Armstrong Advisory Group Inc. boosted its holdings in NVIDIA by 2.3% during the third quarter. Armstrong Advisory Group Inc. now owns 29,984 shares of the computer hardware maker's stock worth $6,848,000 after buying an additional 663 shares in the last quarter. Gilpin Wealth Management LLC boosted its position in shares of NVIDIA by 0.4% in the third quarter. Gilpin Wealth Management LLC now owns 25,656 shares of the computer hardware maker's stock worth $5,859,000 after buying an additional 107 shares during the period. Capital Planning LLC acquired a new stake in NVIDIA during the 3rd quarter worth about $1,253,000. jvl associates llc grew its position in NVIDIA by 4.4% during the third quarter. jvl associates llc now owns 16,615 shares of the computer hardware maker's stock valued at $3,795,000 after purchasing an additional 697 shares in the last quarter. Finally, Tilia Fiduciary Partners Inc. grew its holdings in shares of NVIDIA by 6.5% during the 3rd quarter. Tilia Fiduciary Partners Inc. now owns 4,948 shares of the computer hardware maker's stock valued at $1,130,000 after acquiring an additional 300 shares in the last quarter. Institutional investors and hedge funds own 65.27% of the company's stock.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: AI infrastructure demand remains robust. TSMC reported third-quarter revenue growth of 50%, while analysts cited continued hyperscaler spending and projected U.S. data-center capital expenditures of roughly $2 trillion next year—supportive of NVIDIA’s accelerator demand. NVIDIA AI spending outlook
• Positive Sentiment: SpaceX reportedly plans to raise as much as $40 billion to purchase NVIDIA AI chips, highlighting the scale of demand from emerging AI customers. NVIDIA also committed $1 billion over five years to U.S. scientific research in areas including quantum computing, healthcare and energy security. SpaceX NVIDIA chip purchase report
• Neutral Sentiment: Options activity is mixed: a large bullish trade suggests some investors expect further gains, but heavier put buying in the semiconductor ETF indicates increased hedging and caution across the chip sector. Technical analysts also see resistance near $235 and potential support around $215–$220. NVIDIA and semiconductor options activity
• Negative Sentiment: Investors remain concerned that AI spending may be debt-funded and approaching a peak. The withdrawal of NVIDIA-backed Firmus Grid’s proposed multibillion-dollar IPO, alongside reports that OpenAI’s annualized revenue was below earlier expectations, has raised questions about AI infrastructure valuations and customer funding. Firmus IPO withdrawal
• Negative Sentiment: Leadership and governance headlines add limited uncertainty: NVIDIA’s head of corporate communications left after roughly four months, while a legal challenge to the company’s Groq technology transaction could create additional execution and reputational risk. NVIDIA communications chief departure

About NVIDIA

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company's products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

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