NVIDIA (NASDAQ:NVDA) Upgraded to "Strong-Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded NVIDIA from “buy” to “strong-buy,” while other major analysts like Evercore, Goldman Sachs, Wedbush, and Citic Securities also reiterated bullish ratings and raised price targets.
• NVIDIA’s latest earnings beat expectations, reporting $1.87 EPS on $81.62 billion in revenue, with revenue up 85.2% year over year and strong profitability metrics including a 62.97% net margin.
• The company announced an $80 billion stock buyback, and the article notes that this move, along with recent analyst optimism, signals confidence in NVIDIA’s future cash generation and valuation.

NVIDIA (NASDAQ:NVDA - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a report released on Saturday.

Several other equities analysts have also commented on NVDA. Evercore reaffirmed an "outperform" rating and set a $413.00 target price (up from $352.00) on shares of NVIDIA in a report on Thursday. The Goldman Sachs Group reaffirmed a "buy" rating and set a $285.00 target price (up from $250.00) on shares of NVIDIA in a report on Wednesday. Citic Securities upped their target price on NVIDIA from $242.00 to $315.00 and gave the company a "buy" rating in a report on Friday. Wedbush upped their target price on NVIDIA from $300.00 to $330.00 and gave the company an "outperform" rating in a report on Thursday. Finally, Barclays reaffirmed an "overweight" rating on shares of NVIDIA in a report on Thursday. Four investment analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus target price of $303.27.

NVIDIA Stock Performance

Shares of NVDA stock opened at $215.33 on Friday. The company has a market cap of $5.21 trillion, a P/E ratio of 32.98, a PEG ratio of 0.68 and a beta of 2.25. The business has a 50 day moving average of $196.10 and a two-hundred day moving average of $189.06. NVIDIA has a 52 week low of $129.16 and a 52 week high of $236.54. The company has a quick ratio of 3.24, a current ratio of 3.44 and a debt-to-equity ratio of 0.04.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating the consensus estimate of $1.76 by $0.11. The company had revenue of $81.62 billion during the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The business's revenue was up 85.2% compared to the same quarter last year. During the same period in the prior year, the company earned $0.81 earnings per share. As a group, analysts anticipate that NVIDIA will post 7.88 EPS for the current year.

NVIDIA declared that its board has initiated a stock repurchase plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in 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 board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other news, CFO Colette Kress sold 42,650 shares of the stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $174.89, for a total value of $7,459,058.50. Following the completion of the transaction, the chief financial officer directly owned 881,387 shares in the company, valued at $154,145,772.43. This trade represents a 4.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director John Dabiri sold 3,004 shares of the stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $184.90, for a total transaction of $555,439.60. Following the completion of the transaction, the director owned 14,788 shares of the company's stock, valued at $2,734,301.20. This trade represents a 16.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 906,336 shares of company stock valued at $162,802,518. 4.17% of the stock is currently owned by insiders.

Institutional Trading of NVIDIA

A number of large investors have recently added to or reduced their stakes in NVDA. Norges Bank bought a new stake in NVIDIA during the fourth quarter worth approximately $62,244,133,000. J. Stern & Co. LLP boosted its holdings in NVIDIA by 13,709.1% during the fourth quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker's stock worth $23,454,297,000 after buying an additional 124,849,603 shares in the last quarter. Cardano Risk Management B.V. boosted its holdings in NVIDIA by 896.4% during the fourth quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker's stock worth $14,570,119,000 after buying an additional 70,283,539 shares in the last quarter. Capital Research Global Investors boosted its holdings in NVIDIA by 16.1% during the third quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker's stock worth $30,855,564,000 after buying an additional 22,896,705 shares in the last quarter. Finally, Laurel Wealth Advisors LLC boosted its holdings in NVIDIA by 15,496.1% during the second quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker's stock worth $3,454,534,000 after buying an additional 21,725,326 shares in the last quarter. 65.27% of the stock is currently owned by institutional investors.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA delivered a record quarter with massive revenue growth, strong guidance, and record data center sales. The Tech Download: What you might have missed in Nvidia's earnings — a $200 billion opportunity and edge computing
• Positive Sentiment: The company raised its dividend sharply and approved an $80 billion buyback, signaling confidence in future cash generation. Nvidia Just Raised Its Dividend By 2,400% -- and That Wasn't Even the Biggest News From Its Earnings Report
• Positive Sentiment: Wall Street remains broadly bullish, with multiple analysts raising price targets after earnings. Nvidia stock continues to struggle after earnings, but analysts remain firmly bullish
• Neutral Sentiment: Despite the strong report, the market seems to be digesting the results rather than rewarding them, suggesting investors may think the bar was already very high. Nvidia Stock Misses Out on Friday's Rally. Here's How Much Traders See It Moving Next Week
• Negative Sentiment: Some investors remain worried about valuation, competition, and the possibility that AI spending growth could slow from current extreme levels. Why Nvidia Stock Is Barely Moving After Earnings Crushed Expectations

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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