NVIDIA FY2028 EPS Forecast Boosted by Erste Group Bank

Key Points

• Erste Group Bank raised NVIDIA’s FY2028 EPS forecast to $15.78 from $12.70, well above the current consensus estimate of $9.12.
• NVIDIA recently exceeded quarterly expectations, reporting $2.22 in EPS versus $2.09 expected and $96.22 billion in revenue versus $92.27 billion; revenue increased 105.9% year over year.
• Analysts remain broadly bullish, with NVIDIA carrying an average “Buy” rating and a $324.34 price target, while the company also maintains an $80 billion share-repurchase authorization and a 0.5% dividend yield.

NVIDIA Corporation (NASDAQ:NVDA - Free Report) - Analysts at Erste Group Bank increased their FY2028 EPS estimates for shares of NVIDIA in a report issued on Tuesday, September 8th. Erste Group Bank analyst H. Engel now anticipates that the computer hardware maker will post earnings of $15.78 per share for the year, up from their previous estimate of $12.70. The consensus estimate for NVIDIA's current full-year earnings is $9.12 per share.

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

Other equities analysts have also recently issued reports about the stock. Phillip Securities raised their target price on shares of NVIDIA from $285.00 to $300.00 and gave the company a "buy" rating in a research note on Monday, August 31st. KGI Securities upped their price target on shares of NVIDIA from $335.00 to $345.00 in a research report on Thursday, August 27th. Stifel Nicolaus set a $315.00 price target on shares of NVIDIA in a research note on Thursday, August 27th. China Renaissance raised their target price on shares of NVIDIA from $319.00 to $330.00 and gave the company a "buy" rating in a research note on Monday, August 31st. Finally, Itau BBA Securities reduced their price target on NVIDIA from $256.00 to $218.00 in a report on Wednesday, June 24th. Three investment analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, NVIDIA presently has an average rating of "Buy" and an average price target of $324.34.

NVIDIA Stock Performance

NVDA opened at $218.29 on Monday. NVIDIA has a 52-week low of $164.27 and a 52-week high of $236.54. The firm has a market capitalization of $5.26 trillion, a PE ratio of 27.60, a PEG ratio of 1.71 and a beta of 2.22. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The business's 50-day simple moving average is $213.29 and its 200 day simple moving average is $203.41.

Institutional Trading of NVIDIA

Several hedge funds have recently added to or reduced their stakes in NVDA. Norges Bank acquired a new stake in NVIDIA in the 4th quarter worth about $62,244,133,000. 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 worth $23,454,297,000 after purchasing an additional 124,849,603 shares in the last quarter. Jupiter Topco LLC bought a new position in shares of NVIDIA during the second quarter worth approximately $16,156,076,000. Cardano Risk Management B.V. increased its holdings in shares of NVIDIA by 896.4% during the fourth quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker's stock worth $14,570,119,000 after purchasing an additional 70,283,539 shares during the period. Finally, Capital Research Global Investors raised its position in shares of NVIDIA by 16.1% in the third quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker's stock valued at $30,855,564,000 after buying an additional 22,896,705 shares in the last quarter. 65.27% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at NVIDIA

In other NVIDIA news, EVP Timothy S. Teter sold 30,000 shares of the firm's stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the completion of the sale, the executive vice president directly 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 at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of the business's stock in a transaction that occurred on 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 owned 5,207,271 shares of the company's stock, valued at approximately $1,094,412,146.07. This represents a 14.53% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 2,585,740 shares of company stock worth $571,015,527. 3.94% of the stock is owned by company insiders.

NVIDIA Dividend Announcement

The business also recently declared 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 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%.

NVIDIA announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's management believes its stock is undervalued.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Analyst upgrade and growth outlook: Piper Sandler upgraded NVIDIA to “strong buy,” while CEO Jensen Huang reiterated expectations for roughly 70% revenue growth next year and a potential $3 trillion–$4 trillion AI market by 2030. Erste Group also raised its FY2027 EPS estimate to $9.23 from $9.00. NVIDIA analyst upgrade Jensen Huang growth outlook
• Positive Sentiment: Evidence of sustained chip demand: TSMC reported August revenue growth of 53.3% year over year, signaling continued orders for AI accelerators and advanced packaging. The data supports NVIDIA’s view that hyperscaler and enterprise AI infrastructure spending remains strong. TSMC August revenue
• Positive Sentiment: Infrastructure expansion and partnerships: NVIDIA is working with Australian cloud and data-center companies on up to 2 gigawatts of AI-factory capacity by 2027. Its collaborations with Palantir on sovereign AI supply chains and d-Matrix on chip-linking technology further expand the CUDA-based ecosystem and potential future demand. NVIDIA Australia AI infrastructure d-Matrix partnership
• Neutral Sentiment: Valuation remains the central debate: Investors are weighing NVIDIA’s exceptional growth, profitability and AI leadership against a very high market capitalization and the possibility that optimistic forecasts are already reflected in the stock. Analysts continue to compare NVIDIA with Broadcom and AMD as custom silicon competition develops. NVIDIA valuation debate
• Negative Sentiment: Regulatory and sentiment risks: The Justice Department is reportedly examining NVIDIA’s licensing arrangement with Groq for possible antitrust concerns. In addition, insiders have reported substantial selling with no purchases in the past six months, while higher oil prices and Treasury yields have pressured high-growth technology shares. DOJ Groq investigation NVIDIA insider sales

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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