Erste Group Bank Increases Earnings Estimates for NVIDIA

Key Points

• Erste Group Bank modestly raised NVIDIA’s earnings estimates, projecting fiscal 2027 EPS of $8.67, up from $8.64, and fiscal 2028 EPS of $12.15. The fiscal 2027 estimate remains below the broader consensus of $8.79.
• Analyst sentiment remains strongly positive, with NVIDIA holding a consensus “Buy” rating and an average price target of $304.26.
• NVIDIA reported quarterly EPS and revenue above expectations, authorized an $80 billion share-repurchase plan, and increased its quarterly dividend to $0.25 per share; however, insiders sold approximately $410.6 million of stock during the latest quarter.

NVIDIA Corporation (NASDAQ:NVDA - Free Report) - Stock analysts at Erste Group Bank increased their FY2027 EPS estimates for NVIDIA in a research note issued to investors on Monday, July 27th. Erste Group Bank analyst H. Engel now anticipates that the computer hardware maker will post earnings of $8.67 per share for the year, up from their prior estimate of $8.64. The consensus estimate for NVIDIA's current full-year earnings is $8.79 per share. Erste Group Bank also issued estimates for NVIDIA's FY2028 earnings at $12.15 EPS.

A number of other research firms have also recently weighed in on NVDA. William Blair reaffirmed an "outperform" rating on shares of NVIDIA in a report on Tuesday, June 2nd. New Street Research dropped their price target on shares of NVIDIA from $343.00 to $340.00 in a research note on Thursday, May 21st. Robert W. Baird set a $500.00 price objective on shares of NVIDIA and gave the company an "outperform" rating in a research note on Thursday, May 21st. JPMorgan Chase & Co. lifted their price objective on NVIDIA from $265.00 to $280.00 and gave the stock an "overweight" rating in a research note on Thursday, May 21st. Finally, Zacks Research raised NVIDIA from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 20th. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, NVIDIA presently has a consensus rating of "Buy" and a consensus target price of $304.26.

NVIDIA Stock Performance

NASDAQ NVDA opened at $197.01 on Wednesday. NVIDIA has a twelve month low of $164.07 and a twelve month high of $236.54. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. The stock has a market cap of $4.77 trillion, a P/E ratio of 30.17, a PEG ratio of 0.38 and a beta of 2.21. The company's 50-day simple moving average is $206.86 and its 200 day simple moving average is $195.98.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating the consensus estimate of $1.76 by $0.11. The firm had revenue of $81.61 billion during the quarter, compared to analysts' expectations of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company's revenue for the quarter was up 85.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.81 EPS.

NVIDIA announced that its board has initiated a share 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 buy up to 1.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its shares are undervalued.

NVIDIA Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were paid a $0.25 dividend. The ex-dividend date of this dividend was Thursday, June 4th. This is an increase from NVIDIA's previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA's payout ratio is presently 15.31%.

Insider Activity

In other news, Director Mark A. Stevens sold 885,000 shares of the stock in a transaction on 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 sale, the director owned 5,207,271 shares of the company's stock, valued at $1,094,412,146.07. This represents a 14.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Stephen C. Neal sold 15,500 shares of the firm's stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the sale, the director owned 116,135 shares in the company, valued at approximately $25,053,803.55. The trade was a 11.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 1,901,125 shares of company stock worth $410,583,015 over the last quarter. 3.94% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Platform Technology Partners lifted its position in shares of NVIDIA by 1.7% in the second quarter. Platform Technology Partners now owns 132,818 shares of the computer hardware maker's stock worth $26,575,000 after purchasing an additional 2,156 shares in the last quarter. SPWM Advisors LLC increased its stake in NVIDIA by 5.7% in the 2nd quarter. SPWM Advisors LLC now owns 14,653 shares of the computer hardware maker's stock valued at $2,972,000 after buying an additional 786 shares during the last quarter. SWP Financial LLC lifted its position in NVIDIA by 48.4% during the 2nd quarter. SWP Financial LLC now owns 2,414 shares of the computer hardware maker's stock worth $483,000 after buying an additional 787 shares in the last quarter. Farmers & Merchants Trust Co of Chambersburg PA boosted its stake in shares of NVIDIA by 0.6% during the 2nd quarter. Farmers & Merchants Trust Co of Chambersburg PA now owns 43,659 shares of the computer hardware maker's stock worth $8,736,000 after buying an additional 253 shares during the last quarter. Finally, Wealth Advisory Solutions LLC grew its holdings in shares of NVIDIA by 1.3% in the 2nd quarter. Wealth Advisory Solutions LLC now owns 7,934 shares of the computer hardware maker's stock valued at $1,588,000 after acquiring an additional 100 shares in the last quarter. 65.27% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Erste Group Bank raised its NVIDIA fiscal 2027 EPS estimate to $8.67 from $8.64 and its fiscal 2028 estimate to $12.15 from $12.12. Although the revisions were small, they reinforce expectations for continued earnings growth above the current-year consensus of $8.79. Erste Group Bank NVIDIA estimates
• Positive Sentiment: NVIDIA announced a long-term partnership with Safe Superintelligence, founded by former OpenAI scientist Ilya Sutskever, giving the AI lab access to NVIDIA’s Vera Rubin systems and potentially expanding its compute demand. Reports also indicate a planned $5 billion NVIDIA investment. NVIDIA investment in Safe Superintelligence
• Positive Sentiment: SK Hynix reported a more than sixfold increase in quarterly operating profit, citing strong demand for advanced memory used in AI data centers. The result supports the broader AI infrastructure demand outlook, although sales missed forecasts. SK Hynix AI demand report
• Neutral Sentiment: CEO Jensen Huang continues to highlight robotics and “physical AI” as major future growth markets, potentially extending NVIDIA’s opportunity beyond data centers into autos, industrial systems and autonomous machines. Jensen Huang robotics outlook
• Negative Sentiment: Reports that NVIDIA may provide up to a $250 billion financing backstop for OpenAI’s Ohio data-center project renewed fears that the chipmaker is supporting customer demand through circular or vendor financing. The arrangement could increase counterparty and balance-sheet risk if OpenAI or data-center utilization falls. NVIDIA OpenAI financing backstop
• Negative Sentiment: A Taiwan investigation reportedly detained an NVIDIA employee in connection with alleged illegal exports of Super Micro AI servers to China, adding compliance and geopolitical risk. Separately, investors remain concerned about Chinese semiconductor competition and potential AI spending fatigue. Taiwan NVIDIA employee investigation

About NVIDIA

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.