NVIDIA Corporation (NASDAQ:NVDA) Receives Consensus Recommendation of "Buy" from Analysts

Key Points

• Analysts remain strongly bullish: Fifty of 55 brokerages rate NVIDIA a “Buy,” three rate it a “Strong Buy,” and the average 12-month price target is $324.34.
• Operating results exceeded expectations: NVIDIA reported quarterly EPS of $2.22 versus the $2.09 consensus estimate, while revenue reached $96.22 billion, up 105.9% year over year.
• Shareholder actions and risks: The company authorized an $80 billion stock-repurchase plan and declared a quarterly dividend, although substantial insider selling, customer concentration and higher memory costs could pressure the stock.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) has received a consensus recommendation of "Buy" from the fifty-five brokerages that are covering the company, Marketbeat Ratings reports. Two investment analysts have rated the stock with a hold rating, fifty have given a buy rating and three have given a strong buy rating to the company. The average 1 year price target among brokerages that have covered the stock in the last year is $324.3392.

A number of research firms have recently commented on NVDA. William Blair restated an "outperform" rating on shares of NVIDIA in a research note on Tuesday, June 2nd. Raymond James Financial set a $515.00 target price on NVIDIA and gave the stock a "strong-buy" rating in a report on Thursday, August 27th. CICC Research increased their price target on NVIDIA from $240.60 to $268.30 and gave the company an "outperform" rating in a research report on Friday, May 22nd. BMO Capital Markets set a $340.00 price target on NVIDIA and gave the company an "outperform" rating in a research note on Thursday, August 20th. Finally, DA Davidson reaffirmed a "buy" rating and set a $300.00 price target on shares of NVIDIA in a research report on Thursday, August 27th.

NVIDIA Stock Performance

Shares of NVDA stock opened at $210.96 on Tuesday. The company's fifty day simple moving average is $213.60 and its 200-day simple moving average is $203.54. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The firm has a market cap of $5.08 trillion, a PE ratio of 26.67, a P/E/G ratio of 1.71 and a beta of 2.22. NVIDIA has a 12 month low of $164.27 and a 12 month high of $236.54.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its 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 business had revenue of $96.22 billion during the quarter, compared to analysts' expectations of $92.27 billion. During the same quarter in the prior year, the company posted $1.05 earnings per share. The firm's revenue was up 105.9% on a year-over-year basis. Equities research analysts expect that NVIDIA will post 9.12 EPS for the current fiscal year.

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

NVIDIA Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be paid a $0.25 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA's dividend payout ratio (DPR) is currently 12.64%.

Insiders Place Their Bets

In other NVIDIA news, EVP Timothy S. Teter sold 30,000 shares of the stock in a transaction on Monday, August 31st. The shares were sold at an average price of $217.88, for a total value of $6,536,400.00. Following the completion of the sale, the executive vice president owned 2,687,660 shares in the company, valued at $585,587,360.80. This trade represents a 1.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the completion of the transaction, the director directly owned 5,207,271 shares of the company's stock, valued at approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 2,585,740 shares of company stock worth $571,015,527. 3.94% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On NVIDIA

A number of institutional investors and hedge funds have recently modified their holdings of NVDA. J. Stern & Co. LLP grew its position in shares of NVIDIA by 13,709.1% during the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker's stock valued at $23,454,297,000 after acquiring an additional 124,849,603 shares during the period. Jupiter Topco LLC acquired a new position in NVIDIA in the 2nd quarter worth about $16,156,076,000. Van ECK Associates Corp boosted its position in NVIDIA by 34.7% during the second quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker's stock worth $15,176,771,000 after purchasing an additional 19,522,304 shares in the last quarter. PFA Pension Forsikringsaktieselskab purchased a new position in NVIDIA during the fourth quarter worth approximately $2,635,969,000. Finally, Amundi grew its holdings in NVIDIA by 10.4% in the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock valued at $23,329,141,000 after purchasing an additional 12,575,177 shares during the period. 65.27% of the stock is owned by institutional investors.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: CEO Jensen Huang publicly rejected the idea of an AI slowdown and told President Donald Trump that NVIDIA would not allow one to happen. Trump also criticized opposition to new data centers, signaling continued political support for AI infrastructure investment. NVIDIA CEO Jensen Huang tells Trump about AI slowdown
• Positive Sentiment: NVIDIA’s underlying demand story remains strong: recent earnings showed revenue growth of more than 100%, while management has indicated that supply—not customer demand—is limiting expansion. Analysts continue to view NVIDIA favorably relative to other AI infrastructure companies because of its faster growth, strong margins and lower leverage. NVIDIA versus Marvell AI infrastructure comparison
• Positive Sentiment: The company expanded its open-source CUDA-Q platform with CUDA-Q Logical, which connects GPUs with quantum processors and could generate longer-term demand for NVIDIA accelerated-computing and networking systems. Fermilab reportedly reduced a fault-tolerant design cycle from five months to three weeks using the platform. NVIDIA expands CUDA-Q for quantum computing
• Neutral Sentiment: NVIDIA is reportedly considering a large investment in Anthropic and continues to pursue strategic investments across AI infrastructure. Such moves could strengthen ecosystem demand, but the Anthropic investment has not been presented as a finalized transaction. NVIDIA investment discussions involving Anthropic
• Negative Sentiment: Anthropic, OpenAI and other AI executives have called for a more measured pace of frontier-model development. Investors interpreted those comments as a potential threat to hyperscaler capital spending, GPU demand and the pace of data-center expansion, pressuring NVDA and peer chip stocks. NVIDIA stock and AI slowdown concerns
• Negative Sentiment: Management expects higher memory costs to weigh on gross margins, while NVIDIA’s reliance on a relatively small number of major customers creates concentration risk. These concerns make the stock vulnerable to profit-taking when AI spending expectations soften.

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.

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