NVIDIA (NASDAQ:NVDA) to Repurchase $80.00 billion in Outstanding Stock

Key Points

• NVIDIA’s board approved a massive $80 billion share repurchase program, allowing the company to buy back up to 1.5% of its stock through open market purchases.
• The company also reported strong quarterly results, with earnings and revenue both beating estimates and revenue rising 85.2% year over year, underscoring continued AI-driven growth.
• Shares were up about 1.3% on the day, and Wall Street remains bullish overall, with an average analyst rating of “Buy” and an average price target of $279.06.

NVIDIA (NASDAQ:NVDA - Get Free Report) declared that its board has approved a stock repurchase program on Wednesday, May 20th, RTT News reports. The company plans to buyback $80.00 billion in shares. This buyback authorization permits the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the stock. Tigress Financial reiterated a "strong-buy" rating and set a $360.00 price target (up from $350.00) on shares of NVIDIA in a research note on Thursday, March 5th. Sanford C. Bernstein reiterated a "buy" rating on shares of NVIDIA in a research note on Friday, April 17th. Robert W. Baird raised their price target on shares of NVIDIA from $275.00 to $300.00 and gave the company an "outperform" rating in a research report on Thursday, February 26th. Needham & Company LLC reissued a "buy" rating and issued a $240.00 price target on shares of NVIDIA in a research report on Wednesday, March 18th. Finally, The Goldman Sachs Group reissued a "buy" rating on shares of NVIDIA in a research report on Wednesday. Four analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and an average target price of $279.06.

NVIDIA Stock Up 1.3%

NVIDIA stock traded up $2.86 during trading on Wednesday, reaching $223.47. The stock had a trading volume of 177,901,758 shares, compared to its average volume of 156,568,368. NVIDIA has a 52-week low of $129.16 and a 52-week high of $236.54. The business has a 50 day moving average price of $194.82 and a 200 day moving average price of $188.75. The company has a quick ratio of 3.24, a current ratio of 3.91 and a debt-to-equity ratio of 0.05. The stock has a market cap of $5.41 trillion, a PE ratio of 45.61, a P/E/G ratio of 0.69 and a beta of 2.25.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.76 by $0.11. NVIDIA had a net margin of 55.60% and a return on equity of 97.37%. The company had revenue of $81.62 billion during the quarter, compared to the consensus estimate of $78.42 billion. During the same quarter in the previous year, the firm earned $0.81 earnings per share. The firm's quarterly revenue was up 85.2% on a year-over-year basis. On average, analysts predict that NVIDIA will post 7.85 EPS for the current year.

NVIDIA Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 1st. Shareholders of record on Wednesday, March 11th were paid a $0.01 dividend. The ex-dividend date was Wednesday, March 11th. This represents a $0.04 dividend on an annualized basis and a yield of 0.0%. NVIDIA's dividend payout ratio (DPR) is currently 0.82%.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA delivered another huge beat-and-raise quarter, with record revenue, strong EPS growth, and data-center results that underline its dominance in AI infrastructure.
• Positive Sentiment: The company authorized an additional $80 billion share buyback and raised its quarterly dividend from $0.01 to $0.25 per share, signaling confidence in future cash generation and returning more capital to shareholders.
• Positive Sentiment: Analysts and commentators highlighted broad AI demand, strong Blackwell ramp-up, and continued operating leverage, which support the bullish case for NVIDIA stock.
• Neutral Sentiment: NVIDIA said its outlook does not assume any Data Center compute revenue from China, leaving a meaningful source of potential upside or downside depending on trade and licensing developments.
• Neutral Sentiment: Management is also transitioning to a new reporting framework focused on Data Center and Edge Computing, which should better reflect growth drivers but may make comparisons harder in the near term.
• Negative Sentiment: Despite the strong results, articles noted rising competition from custom chips at companies like Amazon and Alphabet, plus ongoing uncertainty around China shipments, which could temper enthusiasm if growth slows.

Insider Buying and Selling

In related news, Director Mark A. Stevens sold 221,682 shares of the stock in a transaction on Friday, March 20th. The shares were sold at an average price of $173.68, for a total value of $38,501,729.76. Following the transaction, the director directly owned 7,399,771 shares of the company's stock, valued at $1,285,192,227.28. This trade represents a 2.91% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Ajay K. Puri sold 300,000 shares of the stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $182.25, for a total transaction of $54,675,000.00. Following the completion of the transaction, the executive vice president directly owned 3,018,547 shares in the company, valued at $550,130,190.75. This trade represents a 9.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 906,336 shares of company stock valued at $162,802,518 over the last 90 days. 4.17% of the stock is currently owned by corporate insiders.

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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