NVIDIA (NASDAQ:NVDA) Trading 4% Higher - Still a Buy?

Key Points

• NVIDIA shares rose 4% on Friday, with the stock trading near $211 as investors continued to favor the AI chip leader despite broader market noise.
• Recent news remained bullish for NVIDIA’s AI demand, including commentary that AI orders are still booked months ahead and that NVIDIA’s robotics collaboration with Hugging Face is expanding into physical AI.
• Analysts stayed constructive, with several firms raising price targets and the consensus rating remaining Buy; the company also reported strong quarterly results, beating earnings and revenue expectations by a wide margin.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) shares were up 4% on Friday . The company traded as high as $211.00 and last traded at $210.96. 147,453,390 shares changed hands during mid-day trading, a decline of 12% from the average session volume of 168,404,672 shares. The stock had previously closed at $202.78.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Cerebras CEO Andrew Feldman said AI demand is still “booked” months in advance, reinforcing the view that compute suppliers like NVIDIA remain in a strong supply-constrained cycle.
• Positive Sentiment: NVIDIA and Hugging Face expanded their robotics collaboration by integrating Isaac AI tools into LeRobot, which supports NVIDIA’s push into physical AI and automation.
• Positive Sentiment: Reuters reported that supplier King Yuan Electronics plans to invest up to $1.4 billion in a U.S. facility, underscoring supply-chain investment around NVIDIA’s ecosystem.
• Positive Sentiment: Multiple articles highlighted bullish valuation takes, including claims that NVIDIA is trading at its cheapest levels in years and may be undervalued relative to its AI growth prospects.
• Neutral Sentiment: Market chatter around SK hynix’s large U.S. listing and broader memory-bottleneck commentary points to continued AI supply-chain momentum, but the direct impact on NVDA is indirect.
• Neutral Sentiment: Reports about Meta building its own AI chip and other hyperscalers pursuing custom silicon add competitive noise, though investors appear to be treating NVIDIA’s platform advantage as intact for now.
• Negative Sentiment: Some coverage warned that AI companies’ borrowing and capital-spending spree could become a risk, raising questions about the durability of the current infrastructure boom.

Wall Street Analyst Weigh In

Several research firms have recently commented on NVDA. Citic Securities raised their price target on NVIDIA from $242.00 to $315.00 and gave the company a "buy" rating in a report on Friday, May 22nd. Daiwa Securities Group upped their price objective on NVIDIA from $215.00 to $255.00 and gave the stock an "outperform" rating in a report on Friday, May 22nd. Raymond James Financial reiterated a "strong-buy" rating and issued a $330.00 price objective on shares of NVIDIA in a research report on Thursday, May 21st. UBS Group raised their target price on NVIDIA from $275.00 to $280.00 and gave the company a "buy" rating in a report on Thursday, May 21st. Finally, BNP Paribas Exane boosted their target price on shares of NVIDIA from $270.00 to $285.00 and gave the stock an "outperform" rating in a research report on Thursday, May 21st. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, NVIDIA has a consensus rating of "Buy" and a consensus price target of $303.84.

NVIDIA Trading Up 4.0%

The firm has a market cap of $5.11 trillion, a price-to-earnings ratio of 32.31, a PEG ratio of 0.45 and a beta of 2.21. The business has a fifty day moving average of $209.45 and a two-hundred day moving average of $194.30. 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 quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.76 by $0.11. The firm had revenue of $81.61 billion during the quarter, compared to analysts' expectations of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.NVIDIA's revenue was up 85.2% on a year-over-year basis. During the same period in the previous year, the firm posted $0.81 earnings per share. As a group, equities analysts expect that NVIDIA Corporation will post 8.79 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. This is a boost 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 currently 15.31%.

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

Insiders Place Their Bets

In other news, Director John Dabiri sold 625 shares of the business's stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the completion of the sale, the director directly owned 14,163 shares of the company's stock, valued at $3,030,882. The trade was a 4.23% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of the business's stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $210.17, for a total value of $186,000,450.00. Following the sale, the director owned 5,207,271 shares of the company's stock, valued at $1,094,412,146.07. The trade was a 14.53% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 1,901,125 shares of company stock valued at $410,583,015 in the last ninety days. Insiders own 3.94% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Defender Capital LLC. lifted its stake in NVIDIA by 0.7% in the second quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker's stock valued at $1,507,000 after buying an additional 50 shares during the last quarter. Spectrum Financial Alliance Ltd LLC boosted its stake 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 buying an additional 51 shares in the last quarter. Presidio Capital Management LLC boosted its position in shares of NVIDIA by 0.4% during the 4th quarter. Presidio Capital Management LLC now owns 15,137 shares of the computer hardware maker's stock valued at $2,823,000 after purchasing an additional 53 shares in the last quarter. 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 worth $1,427,000 after buying an additional 53 shares in the last quarter. Finally, Vision Financial Markets LLC grew its holdings in shares of NVIDIA by 1.2% in the 3rd quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker's stock worth $866,000 after acquiring an additional 53 shares during the last quarter. 65.27% of the stock is owned by institutional investors and hedge funds.

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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