NVIDIA (NASDAQ:NVDA) Trading Up 2.2% - What's Next?

Key Points

• NVIDIA shares rose 2.2% on Thursday, trading near $204.87 after reaching an intraday high of $205.66, though volume was below average.
• The company’s growth story remains strong: recent earnings beat expectations, revenue jumped 85.2% year over year, and analysts still overwhelmingly rate the stock a Buy with a consensus price target of $305.67.
• NVIDIA is expanding beyond core chips through a healthcare AI partnership with Abridge and a $10 billion AI infrastructure venture, while also boosting capital returns with a sharply higher dividend and an $80 billion share repurchase authorization.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) shot up 2.2% on Thursday . The company traded as high as $205.66 and last traded at $204.87. 154,200,960 shares changed hands during trading, a decline of 10% from the average session volume of 172,153,875 shares. The stock had previously closed at $200.42.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA is deepening its healthcare AI push by partnering with Abridge to develop a model for clinical conversations, expanding its reach beyond chips into high-value industry software and services. Nvidia Is Developing an AI Healthcare Model With Startup Abridge
• Positive Sentiment: NVIDIA is also involved in a $10 billion AI infrastructure venture with KKR, Vistra, and the Kuwait Investment Authority, highlighting continued large-scale investment in data centers that should support future GPU demand. KKR Launches $10 Billion AI Infrastructure Company With Nvidia, Vistra
• Positive Sentiment: Analyst commentary remains constructive, with firms like Wedbush and KeyBanc still arguing that NVIDIA is undervalued and has substantial upside as AI demand and Blackwell GPU momentum stay strong. Analyst Calls NVIDIA Undervalued, Sees Major Upside Ahead
• Positive Sentiment: Several reports say NVIDIA’s recent weakness may be a buying opportunity, pointing to continued strong AI revenue growth, robust cash flow, and investor confidence in its long-term position. Nvidia: The Pullback Is A Gift As AI Demand Goes Parabolic
• Neutral Sentiment: Coverage highlighting NVIDIA’s buybacks, dividends, and rising investment activity reinforces that the company is returning more capital while still funding growth initiatives, which is supportive but not a near-term catalyst by itself. NVIDIA’s Outlook Gains Momentum: Stock Price to Follow
• Negative Sentiment: Some articles warn that the broader AI trade is becoming more selective, with investors no longer rewarding every AI name and with concerns around valuation, margins, and hyperscaler in-house chip efforts pressuring sentiment. Nvidia's Buybacks, Sky-High Margins, and TCO Claims
• Negative Sentiment: Broader semiconductor weakness and AI-stock selloff commentary are also weighing on NVIDIA, suggesting some of the recent pressure is tied to sector rotation rather than company-specific problems. Dow jumps 246 points as chip stocks rebound despite Iran tensions

Analyst Ratings Changes

Several analysts have recently weighed in on the stock. Stifel Nicolaus set a $282.00 price target on shares of NVIDIA and gave the company a "buy" rating in a research note on Thursday, May 21st. Craig Hallum upped their price objective on NVIDIA from $245.00 to $275.00 and gave the company a "buy" rating in a report on Thursday, May 21st. DA Davidson reaffirmed a "buy" rating and issued a $300.00 target price on shares of NVIDIA in a research report on Monday, June 1st. Wolfe Research reiterated an "outperform" rating and set a $275.00 price target on shares of NVIDIA in a research report on Thursday, May 21st. Finally, Morgan Stanley set a $288.00 target price on 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 given a Hold rating to the company's stock. According to data from MarketBeat, NVIDIA currently has a consensus rating of "Buy" and a consensus price target of $305.67.

NVIDIA Stock Up 2.2%

The business's fifty day moving average is $205.64 and its two-hundred day moving average is $191.06. The stock has a market cap of $4.96 trillion, a price-to-earnings ratio of 31.37, a PEG ratio of 0.47 and a beta of 2.22. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released 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. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company had revenue of $81.62 billion for the quarter, compared to analyst estimates of $78.42 billion. During the same period in the prior year, the business earned $0.81 EPS. The firm's quarterly revenue was up 85.2% on a year-over-year basis. Equities analysts forecast that NVIDIA Corporation will post 8.61 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

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

NVIDIA announced that its board has initiated a share repurchase 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 buy up to 1.5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling at NVIDIA

In related news, Director Mark A. Stevens sold 500,000 shares of NVIDIA stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $219.83, for a total value of $109,915,000.00. Following the completion of the transaction, the director owned 6,399,771 shares in the company, valued at $1,406,861,658.93. The trade was a 7.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Stephen C. Neal sold 15,500 shares of the business's stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the transaction, the director 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 disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 1,622,461 shares of company stock valued at $332,629,083. 3.94% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NVIDIA

A number of institutional investors and hedge funds have recently modified their holdings of NVDA. Joule Financial LLC lifted its stake in NVIDIA by 2.2% during 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 during the last quarter. Spectrum Financial Alliance Ltd LLC raised 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 worth $243,000 after purchasing an additional 51 shares in the last quarter. Presidio Capital Management LLC raised 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 worth $2,823,000 after purchasing an additional 53 shares in the last quarter. LMG Wealth Partners LLC lifted its position in shares of NVIDIA by 0.7% during the 4th 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 during the last quarter. Finally, Vision Financial Markets LLC lifted its position in shares of NVIDIA by 1.2% during the 3rd quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker's stock worth $866,000 after buying an additional 53 shares during the last quarter. Institutional investors and hedge funds 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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