Erste Group Bank Boosts Earnings Estimates for NVIDIA

Key Points

• Erste Group Bank raised NVIDIA’s FY2027 earnings estimate to $9.23 per share from $9.00, above the current analyst consensus of $9.10.
• NVIDIA’s latest quarterly results exceeded expectations, with EPS of $2.22 versus $2.09 expected and revenue of $96.22 billion, up 105.9% year over year.
• Analyst sentiment remains broadly positive: the stock has a consensus “Buy” rating and an average price target of $324.34, although recent insider selling and a 2.4% share-price decline may weigh on investor sentiment.

NVIDIA Corporation (NASDAQ:NVDA - Free Report) - Equities researchers at Erste Group Bank raised their FY2027 earnings estimates for NVIDIA in a report issued on Tuesday, September 8th. Erste Group Bank analyst H. Engel now forecasts that the computer hardware maker will earn $9.23 per share for the year, up from their previous estimate of $9.00. The consensus estimate for NVIDIA's current full-year earnings is $9.10 per share.

A number of other analysts have also commented on NVDA. KGI Securities lifted their price target on NVIDIA from $335.00 to $345.00 in a research note on Thursday, August 27th. CICC Research upped their price objective on NVIDIA from $240.60 to $268.30 and gave the company an "outperform" rating in a research note on Friday, May 22nd. Citic Securities raised their price objective on shares of NVIDIA from $242.00 to $315.00 and gave the company a "buy" rating in a report on Friday, May 22nd. Wedbush lifted their target price on shares of NVIDIA from $330.00 to $345.00 and gave the stock an "outperform" rating in a research report on Thursday, August 27th. Finally, Raymond James Financial set a $515.00 target price on shares of NVIDIA and gave the stock a "strong-buy" rating in a report on Thursday, August 27th. Three investment analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Buy" and an average target price of $324.34.

NVIDIA Trading Down 2.4%

Shares of NVDA stock opened at $218.36 on Friday. NVIDIA has a twelve month low of $164.27 and a twelve month high of $236.54. The stock's fifty day simple moving average is $212.82 and its 200 day simple moving average is $203.23. 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 capitalization of $5.26 trillion, a P/E ratio of 27.61, a P/E/G ratio of 1.75 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its quarterly earnings results 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. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The company had revenue of $96.22 billion during the quarter, compared to analysts' expectations of $92.27 billion. During the same period in the prior year, the company earned $1.05 EPS. NVIDIA's revenue was up 105.9% compared to the same quarter last year.

Hedge Funds Weigh In On NVIDIA

Several institutional investors have recently added to or reduced their stakes in NVDA. Montgomery Financial Services LLC acquired a new stake in shares of NVIDIA in the 2nd quarter valued at about $28,000. Lifetime Wealth Management P.C. bought a new position in NVIDIA in the fourth quarter worth approximately $26,000. Longview Financial Advisors Inc. acquired a new stake in NVIDIA in the first quarter valued at approximately $27,000. Longfellow Investment Management Co. LLC grew its stake in NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock valued at $33,000 after acquiring an additional 67 shares during the period. Finally, Phillip James Consulting Co. bought a new stake in shares of NVIDIA during the first quarter valued at approximately $40,000. 65.27% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at NVIDIA

In related news, Director Mark A. Stevens sold 622,239 shares of the company's stock in a transaction dated 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 in the company, valued at $541,187,310.22. This represents a 21.03% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Timothy S. Teter sold 30,000 shares of the firm'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 sale, the executive vice president directly 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 2,585,740 shares of company stock valued at $571,015,527. Company insiders own 3.94% of the company's stock.

NVIDIA declared that its Board of Directors has initiated a share repurchase program on Wednesday, May 20th that permits the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization permits the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's leadership believes its shares are undervalued.

NVIDIA Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA's dividend payout ratio is 12.64%.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s AI growth outlook remains exceptionally strong. CEO Jensen Huang said revenue could grow roughly 70% next year, while the company’s next-generation Rubin platform is already shipping. Recent quarterly revenue reached $96.2 billion, up about 106% year over year, exceeding estimates and reinforcing expectations for continued data-center demand. Nvidia Has $96 Billion in Quarterly Revenue
• Positive Sentiment: Microsoft reportedly plans to more than triple its data-center capacity, a potentially significant demand catalyst for NVIDIA’s GPUs, networking products and full-stack systems. Strong August revenue growth at manufacturing partner TSMC also signals that AI-chip orders remain robust. Microsoft Data Center Expansion
• Positive Sentiment: NVIDIA is expanding its ecosystem through a planned Australian AI-infrastructure buildout of up to 2 gigawatts by 2027, partnerships with Palantir for sovereign supply-chain AI, and adoption of its chip-linking technology by d-Matrix. These initiatives broaden demand beyond traditional hyperscalers. Australian AI Infrastructure Expansion
• Neutral Sentiment: Competition and valuation remain investor concerns. Positron AI raised $875 million to develop memory-based inference technology that could challenge NVIDIA’s software and hardware advantage, while AMD and Broadcom are being promoted as alternative AI investments. High Treasury yields also make NVIDIA’s elevated valuation more difficult to justify.
• Negative Sentiment: The Justice Department is reportedly investigating whether NVIDIA’s licensing arrangement with AI-chip startup Groq was structured to avoid antitrust scrutiny. Any regulatory action could limit strategic flexibility or increase legal uncertainty. DOJ Groq Licensing Investigation
• Negative Sentiment: Insider selling is weighing on sentiment: director Mark Stevens reportedly sold hundreds of thousands of shares, and broader recent filings show substantial insider sales with no reported purchases. The transactions do not prove weakening fundamentals, but they can encourage profit-taking after the stock’s strong rally.
• Negative Sentiment: Higher oil prices, rising bond yields and a hotter inflation reading have pressured technology stocks broadly. These macro forces, combined with concerns about AI-capital-spending sustainability and fresh regulatory scrutiny, help explain why NVIDIA has decreased despite strong company-specific news.

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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