NVIDIA (NASDAQ:NVDA) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded NVIDIA from a “strong-buy” to a “buy,” even though the broader analyst view remains constructive with a consensus rating of “Buy” and a consensus price target of $303.84.
• NVIDIA continues to post strong operating results, including quarterly EPS of $1.87 versus estimates of $1.76 and revenue of $81.61 billion, up 85.2% year over year.
• The company’s board approved an $80 billion share buyback program, while insider selling has continued and institutional investors still own a majority of the stock at 65.27%.

NVIDIA (NASDAQ:NVDA - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Saturday.

Other research analysts also recently issued research reports about the stock. KeyCorp set a $310.00 price objective on shares of NVIDIA and gave the stock an "overweight" rating in a report 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 report on Thursday, May 21st. Cantor Fitzgerald reissued an "overweight" rating and set a $350.00 target price on shares of NVIDIA in a research report on Thursday, May 21st. BNP Paribas Exane upped their target price on shares of NVIDIA from $270.00 to $285.00 and gave the stock an "outperform" rating in a report on Thursday, May 21st. Finally, Morgan Stanley set a $288.00 price target on shares of NVIDIA and gave the company an "overweight" rating in a research report on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus price target of $303.84.

NVIDIA Stock Performance

Shares of NVIDIA stock opened at $194.83 on Friday. The stock has a market capitalization of $4.71 trillion, a PE ratio of 29.84, a price-to-earnings-growth ratio of 0.43 and a beta of 2.21. NVIDIA has a 52 week low of $157.34 and a 52 week high of $236.54. The stock has a 50 day moving average price of $210.22 and a two-hundred day moving average price of $193.51. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, topping analysts' consensus estimates of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company had revenue of $81.61 billion for the quarter, compared to analyst estimates of $78.42 billion. During the same period in the prior year, the firm earned $0.81 earnings per share. NVIDIA's revenue for the quarter was up 85.2% on a year-over-year basis. As a group, equities analysts anticipate that NVIDIA will post 8.69 earnings per share for the current fiscal year.

NVIDIA announced that its Board of Directors has approved a share buyback program on Wednesday, May 20th that allows the company to buyback $80.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In other NVIDIA news, Director John Dabiri sold 625 shares of the company'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 transaction, the director owned 14,163 shares in the company, valued at $3,030,882. This represents a 4.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of the firm's stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total value of $3,343,815.00. Following the sale, the director directly owned 116,135 shares of the company's stock, valued at approximately $25,053,803.55. This represents a 11.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 1,901,125 shares of company stock valued at $410,583,015. Insiders own 3.94% of the company's stock.

Institutional Trading of NVIDIA

Hedge funds have recently added to or reduced their stakes in the stock. Norges Bank purchased a new stake in NVIDIA in the fourth quarter worth $62,244,133,000. J. Stern & Co. LLP lifted 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 valued at $23,454,297,000 after buying an additional 124,849,603 shares during the last quarter. Cardano Risk Management B.V. grew its stake in shares of NVIDIA by 896.4% during the 4th 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 acquiring an additional 70,283,539 shares during the period. Capital Research Global Investors grew its stake in shares of NVIDIA by 16.1% during the 3rd quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker's stock worth $30,855,564,000 after acquiring an additional 22,896,705 shares during the period. Finally, Laurel Wealth Advisors LLC increased its holdings in NVIDIA by 15,496.1% in the 2nd quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker's stock worth $3,454,534,000 after acquiring an additional 21,725,326 shares during the last quarter. Institutional investors own 65.27% of the company's stock.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA continues to draw bullish long-term calls, with multiple articles pointing to strong AI demand, deep ecosystem positioning, and forward growth potential despite the recent pullback. Nvidia: The Drawdown Is An Opportunity To Pounce
• Positive Sentiment: The company unveiled a revenue-sharing program that gives AI startups access to GPU compute in exchange for a share of future revenue, which could expand NVIDIA’s customer base and lock in longer-term demand for its infrastructure. Nvidia offers start-up customers chance to swap compute power for revenue share
• Positive Sentiment: Several pieces highlighted NVIDIA’s AI partnerships and infrastructure role, including collaborations around AI-RAN and sovereign AI, reinforcing its central position in the AI buildout. The Palantir-Nvidia Sovereign AI Deal Will Reshape Who Wins the AI Infrastructure Race
• Neutral Sentiment: Analysts and commentators remain split, with some saying the AI trade is becoming more selective and profitability will matter more than momentum, which supports stock-picking over broad enthusiasm for semis. Top Invesco Analyst: The AI Trade That “Lifted All Boats” Is Over
• Neutral Sentiment: There is also recurring debate about valuation and whether NVIDIA can regain momentum in the second half of 2026, suggesting investors are waiting for stronger evidence before bidding the stock higher again. Can Nvidia regain its momentum in the second half of 2026?
• Neutral Sentiment: Other articles focused on CEO Jensen Huang’s leather jacket auction and general market commentary, which are not likely to have a direct material impact on the stock. Nvidia CEO Jensen Huang's leather jacket heads to auction at Sotheby's
• Negative Sentiment: The near-term tone is weighed down by articles noting that NVIDIA shares have been declining and that AI chipmakers recently lost significant market value, reflecting profit-taking and a broader semiconductor selloff. Top AI chipmakers wipe $137 billion in a day; Here's why
• Negative Sentiment: Several pieces also note growing competition from custom chips and hyperscaler efforts, plus concerns that AI capacity will catch up to demand, which could pressure NVIDIA’s growth multiple over time. Nvidia Believes Artificial Intelligence (AI) Capex Will Reach $3 Trillion to $4 Trillion by 2030

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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