NVIDIA Corporation (NASDAQ:NVDA) Given Average Rating of "Buy" by Brokerages

Key Points

• Analysts remain broadly bullish on NVIDIA: 49 of 54 firms rate the stock “Buy,” three rate it “Strong Buy,” and the average 12-month price target is about $307.28.
• NVIDIA exceeded quarterly expectations with $1.87 in EPS and $81.61 billion in revenue, up 85.2% year over year, while approving an $80 billion share-repurchase program.
• Insiders sold heavily: Company insiders sold 1.9 million shares worth roughly $410.6 million over the past 90 days, while institutional investors own 65.27% of the stock.

Shares of NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) have earned an average rating of "Buy" from the fifty-four research firms that are presently covering the stock, Marketbeat reports. Two research analysts have rated the stock with a hold recommendation, forty-nine have given a buy recommendation and three have assigned a strong buy recommendation to the company. The average 1-year price target among brokerages that have covered the stock in the last year is $307.2771.

A number of equities analysts have commented on NVDA shares. Seaport Research Partners lifted their price objective on shares of NVIDIA from $140.00 to $180.00 and gave the stock a "sell" rating in a research note on Thursday, May 21st. JPMorgan Chase & Co. increased their price target on shares of NVIDIA from $265.00 to $280.00 and gave the company an "overweight" rating in a report on Thursday, May 21st. Benchmark reiterated a "buy" rating and issued a $335.00 price target (up from $250.00) on shares of NVIDIA in a research report on Thursday, May 21st. Sanford C. Bernstein reissued a "buy" rating on shares of NVIDIA in a research note on Monday, June 29th. Finally, Citic Securities upped their price objective on NVIDIA from $242.00 to $315.00 and gave the company a "buy" rating in a research report on Friday, May 22nd.

Insider Activity

In related news, Director John Dabiri sold 625 shares of the firm's stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total value of $133,750.00. Following the completion of the sale, the director directly owned 14,163 shares in the company, valued at $3,030,882. This trade represents a 4.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of NVIDIA 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 transaction, the director directly owned 116,135 shares of the company's stock, valued at $25,053,803.55. The trade was a 11.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 1,901,125 shares of company stock valued at $410,583,015. 3.94% of the stock is currently owned by insiders.

Institutional Investors Weigh In On NVIDIA

Institutional investors have recently made changes to their positions in the company. Banco de Sabadell S.A lifted its holdings in shares of NVIDIA by 20.1% in the 2nd quarter. Banco de Sabadell S.A now owns 23,624 shares of the computer hardware maker's stock worth $4,723,000 after acquiring an additional 3,950 shares during the last quarter. Nan Shan Life Insurance Co. Ltd. grew its holdings in NVIDIA by 26.8% during the 2nd quarter. Nan Shan Life Insurance Co. Ltd. now owns 652,559 shares of the computer hardware maker's stock valued at $130,571,000 after purchasing an additional 137,878 shares during the last quarter. Bedel Financial Consulting Inc. grew its holdings in NVIDIA by 2.9% during the 2nd quarter. Bedel Financial Consulting Inc. now owns 25,990 shares of the computer hardware maker's stock valued at $5,200,000 after purchasing an additional 732 shares during the last quarter. Murphy Middleton Hinkle & Parker Inc. raised its position in NVIDIA by 4.7% in the 2nd quarter. Murphy Middleton Hinkle & Parker Inc. now owns 2,491 shares of the computer hardware maker's stock worth $498,000 after purchasing an additional 112 shares during the period. Finally, Unio Capital LLC bought a new stake in NVIDIA in the second quarter worth about $200,000. Institutional investors own 65.27% of the company's stock.

NVIDIA Price Performance

Shares of NVIDIA stock opened at $216.85 on Friday. The stock has a 50 day moving average of $207.28 and a 200 day moving average of $199.41. NVIDIA has a 12 month low of $164.07 and a 12 month high of $236.54. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. The firm has a market cap of $5.25 trillion, a PE ratio of 33.21, a PEG ratio of 0.43 and a beta of 2.23.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, topping the consensus estimate of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company had revenue of $81.61 billion for the quarter, compared to analysts' expectations of $78.42 billion. During the same quarter in the previous year, the business posted $0.81 earnings per share. NVIDIA's quarterly revenue was up 85.2% on a year-over-year basis. On average, research analysts expect that NVIDIA will post 8.6 EPS for the current fiscal year.

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

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: China shipments could reopen a portion of NVIDIA’s market. NVIDIA reportedly plans to begin small-batch shipments of a China-specific AI chip by year-end, while limited H200 shipments have already reached Chinese customers. Although the near-term revenue contribution may be modest, the developments could reduce the impact of export restrictions and preserve relationships with major customers such as Alibaba, ByteDance, and Tencent. Nvidia to ship AI chip for China by year-end
• Positive Sentiment: Analysts remain optimistic ahead of the August 26 earnings release. Jefferies expects fiscal second-quarter revenue to exceed consensus by roughly $3 billion, while RBC reaffirmed its Outperform rating with a $300 price target. Stifel also maintained a Buy rating, citing supply-chain evidence from Foxconn and Super Micro and continued strength in the GPU cycle. RBC rating and price target Foxconn and Super Micro supply-chain analysis
• Positive Sentiment: Enterprise and infrastructure demand continues to expand. IBM signed a multiyear $240 million agreement with Together AI to deploy NVIDIA HGX B300 systems on IBM Cloud, using NVIDIA’s Spectrum-X networking. CoreWeave also signed a multibillion-dollar deal giving Hudson River Trading access to NVIDIA’s newest systems, supporting the company’s data-center demand outlook. IBM and Together AI agreement
• Neutral Sentiment: Investors are focused on whether NVIDIA can clear elevated expectations. The company’s earnings report is the major near-term catalyst, with attention on revenue guidance, demand for the Rubin platform, gross margins amid higher memory costs, and visibility into future spending by hyperscalers and AI developers.
• Negative Sentiment: China’s opportunity remains constrained. Analysts estimate that returning H200 products to China may provide only limited near-term revenue, while Beijing may restrict domestic use and U.S. regulators are examining loopholes that allow Chinese firms to access NVIDIA computing capacity through overseas data centers. China AI access and export-control loopholes
• Negative Sentiment: Valuation and competitive risks are limiting enthusiasm. Commentary highlights concentrated AI spending, potential competition from custom chips and rivals, and the possibility that exceptionally strong results are already reflected in the share price. NVIDIA has also underperformed the broader semiconductor index this year, increasing investor sensitivity to any earnings or guidance shortfall.

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.

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