NVIDIA (NASDAQ:NVDA) Trading 1.3% Higher - Should You Buy?

Key Points

• NVIDIA shares rose 1.3% on Monday, trading as high as $196.18 before closing at $194.97, with volume below its recent average.
• The company continues to benefit from AI-driven growth, highlighted by new partnerships with Palantir and Firmus Technologies that expand NVIDIA’s reach in government and global AI infrastructure markets.
• Wall Street remains bullish: several firms raised price targets, and NVIDIA reported strong quarterly results with EPS and revenue beating expectations, while also boosting its dividend and approving an $80 billion buyback plan.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) shares rose 1.3% during trading on Monday . The stock traded as high as $196.18 and last traded at $194.97. Approximately 146,664,141 shares changed hands during trading, a decline of 14% from the average session volume of 169,994,344 shares. The stock had previously closed at $192.53.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s partnership with Palantir to bring open AI models into U.S. government systems is boosting confidence that NVDA’s AI stack is expanding into high-value enterprise and public-sector use cases. Palantir and Nvidia Bring Open AI Models Inside U.S. Government Systems
• Positive Sentiment: Firmus Technologies struck an AI access deal with NVIDIA, another sign that NVDA is deepening its reach across the global AI infrastructure market and helping smaller AI firms get access to compute. Australia's Firmus Technologies strikes AI access deal with Nvidia
• Positive Sentiment: Sanford C. Bernstein reaffirmed its buy rating on NVIDIA, adding to the view that Wall Street still sees meaningful upside despite recent volatility. NVIDIA Corp. Bernstein reaffirms its buy rating
• Positive Sentiment: Multiple articles argue the recent tech and chip selloff is a buying opportunity, with NVIDIA highlighted as a long-term beneficiary of continued AI capex spending. Dan Ives Says the $3 Trillion Tech Wipeout Is a Buying Opportunity. Here's His Case

Analysts Set New Price Targets

A number of research firms recently weighed in on NVDA. Argus lifted their price objective on shares of NVIDIA from $220.00 to $270.00 and gave the company a "buy" rating in a research report on Thursday, May 21st. Craig Hallum raised their price objective on shares of NVIDIA from $245.00 to $275.00 and gave the company a "buy" rating in a research report on Thursday, May 21st. Rosenblatt Securities reissued a "buy" rating and issued a $325.00 price target on shares of NVIDIA in a report on Thursday, May 21st. Royal Bank Of Canada set a $280.00 target price on NVIDIA in a report on Thursday, May 21st. Finally, Susquehanna reiterated a "positive" rating and issued a $275.00 price objective (up from $250.00) on shares of NVIDIA in a research note on Tuesday, May 12th. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, NVIDIA has a consensus rating of "Buy" and an average target price of $303.84.

NVIDIA Stock Up 1.3%

The firm has a market capitalization of $4.72 trillion, a PE ratio of 29.86, a price-to-earnings-growth ratio of 0.43 and a beta of 2.22. The firm's 50-day moving average is $210.66 and its 200 day moving average is $193.06. 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 announced its 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. The company had revenue of $81.61 billion during the quarter, compared to analysts' expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm's quarterly revenue was up 85.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.81 earnings per share. As a group, research analysts forecast that NVIDIA Corporation will post 8.69 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Thursday, June 4th were issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. This is a positive change from NVIDIA's previous quarterly dividend of $0.01. The ex-dividend date of this dividend was Thursday, June 4th. NVIDIA's payout ratio is presently 15.31%.

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

Insider Buying and Selling at NVIDIA

In other NVIDIA news, Director Stephen C. Neal sold 15,500 shares of the firm's stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the sale, the director directly owned 116,135 shares of the company's stock, valued at $25,053,803.55. This trade represents a 11.77% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director John Dabiri sold 625 shares of NVIDIA stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total transaction of $133,750.00. Following the sale, the director owned 14,163 shares of the company's stock, valued at approximately $3,030,882. This trade represents a 4.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 1,901,125 shares of company stock worth $410,583,015. Corporate insiders own 3.94% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. Diversified Enterprises LLC grew its stake in NVIDIA by 44.2% in the fourth quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker's stock worth $23,798,000 after purchasing an additional 39,129 shares in the last quarter. ASR Vermogensbeheer N.V. raised its stake in NVIDIA by 1.8% during the fourth quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker's stock valued at $591,086,000 after buying an additional 54,877 shares in the last quarter. PMG Family Office LLC bought a new position in NVIDIA during the 3rd quarter worth approximately $2,150,000. Storen Legacy Partners LLC acquired a new position in shares of NVIDIA in the 4th quarter worth approximately $1,350,000. Finally, Weaver Capital Management LLC grew its position in shares of NVIDIA by 5.5% in the 4th quarter. Weaver Capital Management LLC now owns 85,216 shares of the computer hardware maker's stock worth $15,893,000 after acquiring an additional 4,439 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company's stock.

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.

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