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

Key Points

• NVIDIA has a consensus analyst rating of "Buy" from 54 brokerages, with an average 12-month price target of about $305.67. Most analysts covering the stock remain bullish, with 48 buys and 3 strong buys.
• The company reported strong quarterly results, including earnings per share of $1.87 versus $1.76 expected and revenue of $81.62 billion, up 85.2% year over year. NVIDIA also raised its quarterly dividend and authorized an $80 billion share buyback.
• Despite the upbeat fundamentals, the stock was down 6.2% in recent trading, and sentiment is being affected by broader semiconductor weakness, regulatory concerns around China, and insider share sales.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) has earned a consensus recommendation of "Buy" from the fifty-four brokerages that are currently covering the company, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a hold recommendation, forty-eight have given a buy recommendation and three have assigned a strong buy recommendation to the company. The average 12-month target price among brokers that have covered the stock in the last year is $305.6660.

Several equities analysts have recently weighed in on the company. Oppenheimer reiterated an "outperform" rating and set a $265.00 price objective on shares of NVIDIA in a report on Thursday, February 26th. Mizuho set a $300.00 target price on NVIDIA in a research note on Thursday, May 21st. President Capital boosted their target price on NVIDIA from $280.00 to $295.00 and gave the company a "buy" rating in a research note on Thursday, May 21st. TD Cowen restated a "buy" rating and issued a $275.00 target price (up from $235.00) on shares of NVIDIA in a research note on Friday, May 15th. Finally, JPMorgan Chase & Co. boosted their target price on NVIDIA from $265.00 to $280.00 and gave the company an "overweight" rating in a research note on Thursday, May 21st.

NVIDIA Trading Down 6.2%

NASDAQ:NVDA opened at $205.10 on Friday. NVIDIA has a fifty-two week low of $140.85 and a fifty-two week high of $236.54. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The stock has a market capitalization of $4.96 trillion, a PE ratio of 31.41, a price-to-earnings-growth ratio of 0.46 and a beta of 2.22. The business's 50-day simple moving average is $203.37 and its 200-day simple moving average is $190.55.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, beating the consensus estimate of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The business had revenue of $81.62 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 EPS. NVIDIA's revenue for the quarter was up 85.2% on a year-over-year basis. Sell-side analysts expect that NVIDIA will post 8.61 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 0.5%. The ex-dividend date is Thursday, June 4th. This is a positive change from NVIDIA's previous quarterly dividend of $0.01. NVIDIA's dividend payout ratio (DPR) is presently 15.31%.

NVIDIA announced that its board has approved a stock buyback plan 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 buy up to 1.5% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board believes its stock is undervalued.

Insider Transactions at NVIDIA

In other NVIDIA news, Director Aarti S. Shah sold 19,000 shares of the business's stock in a transaction that occurred on Thursday, March 19th. The stock was sold at an average price of $176.71, for a total value of $3,357,490.00. Following the sale, the director owned 36,007 shares in the company, valued at approximately $6,362,796.97. The trade was a 34.54% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Colette Kress sold 20,000 shares of the business's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $174.89, for a total value of $3,497,800.00. Following the completion of the sale, the chief financial officer owned 83,060 shares in the company, valued at $14,526,363.40. The trade was a 19.41% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 1,922,461 shares of company stock worth $387,385,083. Corporate insiders own 3.94% of the company's stock.

Institutional Investors Weigh In On NVIDIA

Several institutional investors have recently bought and sold shares of the company. State Street Corp increased its position in shares of NVIDIA by 1.2% during the 4th quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker's stock worth $184,911,111,000 after purchasing an additional 11,451,386 shares during the last quarter. Geode Capital Management LLC increased its position in shares of NVIDIA by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker's stock worth $109,446,217,000 after purchasing an additional 3,383,441 shares during the last quarter. Norges Bank acquired a new position in shares of NVIDIA during the 4th quarter worth approximately $62,244,133,000. Bank of America Corp DE increased its position in shares of NVIDIA by 2.1% during the 1st quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker's stock worth $33,345,453,000 after purchasing an additional 4,019,505 shares during the last quarter. Finally, Legal & General Group Plc increased its position in shares of NVIDIA by 1.5% during the 3rd quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker's stock worth $33,808,862,000 after purchasing an additional 2,609,560 shares during the last quarter. Institutional investors own 65.27% of the company's stock.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA continues to win bullish analyst coverage, with firms like China Renaissance and KeyBanc reiterating optimistic views and high price targets, reinforcing expectations for further upside. China Renaissance rating update
• Positive Sentiment: NVIDIA’s ecosystem is expanding, including a major AI partnership with Taiwan Semiconductor and new collaborations across software, memory, and connectivity, which supports future demand for its AI platforms. Taiwan Semiconductor Manufacturing Signs Major AI Deal With Nvidia
• Positive Sentiment: Jensen Huang’s trip to South Korea has highlighted new growth avenues, including robotics and deeper supplier relationships, adding to NVIDIA’s long-term growth narrative. Nvidia CEO sees robotics as next major sector in South Korea
• Positive Sentiment: Recent commentary says NVIDIA’s Blackwell ramp, CUDA software moat, and AI inference exposure keep the growth story strong, helping investors view pullbacks as buyable. Analyst Picks NVIDIA Over Every Other AI Chip Stock Right Now
• Positive Sentiment: The company’s new PC chip push and RTX Spark product could open another growth lane beyond data centers, even if the market is still digesting the near-term implications. Nvidia's PC Chip Reveal Obscures a Bigger Catalyst for the Stock
• Neutral Sentiment: NVIDIA recently reported strong quarterly results, beat revenue and EPS estimates, and authorized an $80 billion buyback plus a much larger dividend, but those positives are already well known and may be partly priced in. NVIDIA insider trades report
• Negative Sentiment: Broad semiconductor weakness and softer risk appetite after strong jobs data have pressured AI chip stocks, with investors questioning whether the sector’s valuation has gotten ahead of fundamentals. Nvidia stock crashes another 3% today: why Computex failed to spark a rally
• Negative Sentiment: Senator Elizabeth Warren’s invitation for Jensen Huang to testify on China chip sales adds regulatory and export-control overhang around NVIDIA’s business in China. Warren invites Nvidia CEO Jensen Huang to Senate hearing on China AI chip sales
• Negative Sentiment: Director Mark Stevens’ large share sale is also weighing on sentiment, since insider selling can make investors cautious even when the underlying business remains strong. NVIDIA insider trading filing

NVIDIA Company Profile

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.

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