NVIDIA (NASDAQ:NVDA) Trading 1.7% Higher - What's Next?

Key Points

• NVIDIA shares rose 1.7% on Monday, trading as high as $210.47 as investors reacted to renewed optimism around the stock and the broader AI-chip trade.
• The biggest catalyst was NVIDIA’s multiyear AI infrastructure partnerships in Korea with SK hynix, SK Telecom, and NAVER, aimed at building gigawatt-scale AI clouds and factories that could boost demand for NVIDIA’s GPUs, systems, and software.
• Sentiment also stayed supported by Wall Street’s bullish outlook: analysts maintain a consensus “Buy” rating with an average price target of $305.67, while NVIDIA recently topped earnings expectations and raised its quarterly dividend and authorized an $80 billion buyback.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) shares traded up 1.7% on Monday . The company traded as high as $210.47 and last traded at $208.64. 137,338,967 shares changed hands during mid-day trading, a decline of 20% from the average session volume of 172,334,797 shares. The stock had previously closed at $205.10.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA announced multiyear AI infrastructure partnerships with SK hynix, SK Telecom, and NAVER to build gigawatt-scale AI clouds/factories in Korea, expanding demand for NVIDIA’s GPUs, systems, and software. Article Title
• Positive Sentiment: CEO Jensen Huang said the recent semiconductor selloff created a buying opportunity, helping improve sentiment across AI and chip stocks and reinforcing the bullish case for NVIDIA’s AI growth runway. Article Title
• Positive Sentiment: Analysts and market commentary continued to highlight NVIDIA’s strong recent earnings and AI infrastructure demand, with several pieces arguing the stock still has room to run after its blockbuster quarter. Article Title
• Neutral Sentiment: Recent headlines also noted a fresh AI startup acquisition and additional product/partnership developments, but these appear secondary to the larger South Korea expansion theme. Article Title
• Negative Sentiment: Some articles warned that the AI trade may be vulnerable after Friday’s sharp chip selloff, and one Reuters report said NVIDIA’s AI PC push still depends on unproven broader demand beyond niche users. Article Title

Analysts Set New Price Targets

NVDA has been the topic of several research reports. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $255.00 price target (up from $220.00) on shares of NVIDIA in a report on Thursday, May 21st. Truist Financial upped their price target on NVIDIA from $287.00 to $307.00 and gave the company a "buy" rating in a report on Thursday, May 21st. Weiss Ratings reaffirmed a "buy (b)" rating on shares of NVIDIA in a report on Friday, April 10th. KeyCorp set a $310.00 price target on NVIDIA and gave the company an "overweight" rating in a report on Thursday, May 21st. Finally, Wolfe Research reaffirmed an "outperform" rating and issued a $275.00 price target on shares of NVIDIA in a report on Thursday, May 21st. Three equities research 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 stock. According to MarketBeat.com, the company has a consensus rating of "Buy" and an average price target of $305.67.

NVIDIA Stock Performance

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 stock has a market capitalization of $5.05 trillion, a PE ratio of 31.95, a PEG ratio of 0.46 and a beta of 2.22. The firm's 50-day simple moving average is $203.37 and its two-hundred day simple moving average is $190.58.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings data 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 firm had revenue of $81.62 billion for the quarter, compared to analysts' expectations of $78.42 billion. During the same period in the previous year, the company posted $0.81 EPS. The company's quarterly revenue was up 85.2% compared to the same quarter last year. On average, equities research analysts expect that NVIDIA Corporation will post 8.61 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

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

NVIDIA declared that its board has approved a stock repurchase plan on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock buyback plans are often an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at NVIDIA

In other news, Director Stephen C. Neal sold 15,500 shares of the business's stock in a transaction on 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 transaction, the director directly owned 116,135 shares in the company, valued at $25,053,803.55. The trade was a 11.77% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Colette Kress sold 42,650 shares of the business's stock in a transaction on Friday, March 20th. The shares were sold at an average price of $174.89, for a total transaction of $7,459,058.50. Following the transaction, the chief financial officer owned 881,387 shares in the company, valued at approximately $154,145,772.43. This represents a 4.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,922,461 shares of company stock worth $387,385,083 over the last 90 days. 3.94% of the stock is currently owned by insiders.

Institutional Investors Weigh In On NVIDIA

A number of large investors have recently bought and sold shares of the business. Joule Financial LLC boosted its holdings in NVIDIA by 2.2% in the third quarter. Joule Financial LLC now owns 2,308 shares of the computer hardware maker's stock worth $431,000 after purchasing an additional 50 shares in the last quarter. Spectrum Financial Alliance Ltd LLC boosted its holdings in NVIDIA by 3.8% during the first quarter. Spectrum Financial Alliance Ltd LLC now owns 1,395 shares of the computer hardware maker's stock valued at $243,000 after acquiring an additional 51 shares during the period. Presidio Capital Management LLC boosted its holdings in NVIDIA by 0.4% during the fourth quarter. Presidio Capital Management LLC now owns 15,137 shares of the computer hardware maker's stock valued at $2,823,000 after acquiring an additional 53 shares during the period. LMG Wealth Partners LLC boosted its holdings in NVIDIA by 0.7% during the fourth quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker's stock valued at $1,427,000 after acquiring an additional 53 shares during the period. Finally, Vision Financial Markets LLC boosted its holdings in NVIDIA by 1.2% during the third quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker's stock valued at $866,000 after acquiring an additional 53 shares during the period. 65.27% of the stock is currently owned by institutional investors.

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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