NVIDIA's (NVDA) Buy Rating Reiterated at Benchmark

Key Points

• Benchmark reiterated its Buy rating on NVIDIA and set a $335 price target, implying approximately 59.8% upside from the reported $209.66 share price. The broader analyst consensus is Moderate Buy, with an average target of $317.03.
• NVIDIA reported quarterly EPS of $2.22 and revenue of $96.22 billion, exceeding analyst estimates, while revenue surged 105.9% year over year. The company also authorized an $80 billion share-repurchase program.
• Analysts remain optimistic about AI-driven demand, but risks include expected margin compression, no assumed data-center revenue from China, increasing competition from custom chips and concerns about NVIDIA’s customer-financing initiatives.

NVIDIA (NASDAQ:NVDA - Get Free Report)'s stock had its "buy" rating restated by research analysts at Benchmark in a research note issued on Thursday,Benzinga reports. They presently have a $335.00 price target on the computer hardware maker's stock. Benchmark's price target points to a potential upside of 59.78% from the company's current price.

Other analysts also recently issued reports about the stock. BNP Paribas Exane increased their price target on shares of NVIDIA from $270.00 to $285.00 and gave the company an "outperform" rating in a research report on Thursday, May 21st. Truist Financial boosted their price objective on shares of NVIDIA from $307.00 to $346.00 and gave the company a "buy" rating in a report on Thursday. President Capital upped their target price on shares of NVIDIA from $280.00 to $295.00 and gave the company a "buy" rating in a research note on Thursday, May 21st. Argus increased their target price on shares of NVIDIA from $220.00 to $270.00 and gave the stock a "buy" rating in a report on Thursday, May 21st. Finally, Mizuho set a $315.00 price target on shares of NVIDIA in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $317.03.

NVIDIA Trading Down 1.6%

Shares of NASDAQ NVDA opened at $209.66 on Thursday. The company's 50 day simple moving average is $207.61 and its 200 day simple moving average is $200.35. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. NVIDIA has a fifty-two week low of $164.07 and a fifty-two week high of $236.54. The firm has a market capitalization of $5.07 trillion, a P/E ratio of 32.11, a P/E/G ratio of 0.42 and a beta of 2.23.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, beating analysts' consensus estimates of $2.09 by $0.13. The business had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The firm's revenue was up 105.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.05 earnings per share. On average, analysts predict that NVIDIA will post 8.8 EPS for the current year.

NVIDIA announced that its board has approved a stock repurchase plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to purchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In other news, Director Mark A. Stevens sold 885,000 shares of the business's stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $210.17, for a total value of $186,000,450.00. Following the sale, the director directly owned 5,207,271 shares in the company, valued at $1,094,412,146.07. The trade was a 14.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Stephen C. Neal sold 15,500 shares of the stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total value of $3,343,815.00. Following the transaction, the director owned 116,135 shares of the company's stock, valued at approximately $25,053,803.55. The trade was a 11.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 1,900,500 shares of company stock valued at $410,449,265. Company insiders own 3.94% of the company's stock.

Institutional Trading of NVIDIA

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Diversified Enterprises LLC grew its stake in shares of NVIDIA by 44.2% during the fourth quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker's stock worth $23,798,000 after purchasing an additional 39,129 shares in the last quarter. Altshuler Shaham Ltd lifted its holdings in NVIDIA by 6,451.9% during the 1st quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker's stock worth $111,134,000 after buying an additional 627,510 shares during the last quarter. ASR Vermogensbeheer N.V. boosted its position in shares of NVIDIA by 1.8% during the 4th quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker's stock worth $591,086,000 after acquiring an additional 54,877 shares in the last quarter. Storen Legacy Partners LLC acquired a new position in shares of NVIDIA during the 4th quarter worth about $1,350,000. Finally, Arrowstreet Capital Limited Partnership raised its position in shares of NVIDIA by 3.6% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 26,652,420 shares of the computer hardware maker's stock worth $4,970,704,000 after acquiring an additional 936,506 shares in the last quarter. 65.27% of the stock is owned by institutional investors.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Record results exceeded expectations: Fiscal Q2 revenue reached $96.2 billion, up 106% year over year, while non-GAAP EPS of $2.22 topped the $2.09 consensus estimate. Data Center revenue rose 117% to $89.0 billion, and GAAP gross margin was a robust 75%. NVIDIA fiscal second-quarter results
• Positive Sentiment: Strong forward outlook: NVIDIA forecast approximately $108 billion in fiscal Q3 revenue, above Wall Street expectations, and indicated roughly 70% fiscal 2028 revenue growth versus analyst expectations near 45%. CEO Jensen Huang said AI infrastructure demand is accelerating and the buildout is “at full steam.” NVIDIA signals longer AI spending runway
• Positive Sentiment: Customer demand remains substantial: Amazon Web Services and NVIDIA announced plans to deploy an additional two million GPUs, while the company highlighted production ramps for its Vera Rubin platform and continued hyperscaler adoption. AWS expands NVIDIA GPU order
• Positive Sentiment: Analyst support strengthened: Needham raised its price target to $300 and maintained a Buy rating; other firms also lifted targets following the results. Investors continue to view NVDA’s growth and valuation as attractive relative to its earnings trajectory. Needham raises NVIDIA price target
• Neutral Sentiment: Potential Hugging Face acquisition: Reports say NVIDIA may acquire open-source AI platform Hugging Face for approximately $12.9 billion to expand its software and developer ecosystem. However, the reports indicate discussions may not be finalized, and the price would represent a substantial premium to Hugging Face’s prior valuation. NVIDIA reportedly agrees to buy Hugging Face
• Negative Sentiment: Margins are expected to soften: NVIDIA guided fiscal Q3 gross margin to 74%, below the latest quarter’s 75%, as memory, advanced packaging and power constraints pressure costs. Investors are watching whether higher spending and supply investments could limit profitability.
• Negative Sentiment: Risks remain around China, competition and financing: The forecast assumes no Data Center compute revenue from China. Meanwhile, custom chips from OpenAI and Microsoft could gradually reduce hyperscaler reliance on NVIDIA, while the company’s investments and customer-financing initiatives have prompted concerns about circular financing and return on investment. Jensen Huang discusses NVIDIA AI investments

NVIDIA Company Profile

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.

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.

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