NVIDIA Sees Unusually High Options Volume (NASDAQ:NVDA)

Key Points

• NVIDIA saw unusually heavy options activity, with traders buying 3.71 million call options on Wednesday, about 32% above its average daily call volume. The article says this suggests expectations for further upside in the stock.
• The stock continued to trade near record highs, rising to $225.83 during the session and sitting close to its 52-week high of $227.84. NVIDIA also remains a massive company, with a market cap of about $5.49 trillion.
• Analyst sentiment remains broadly bullish, with a consensus rating of “Buy” and a target price of $277.32. Recent commentary has also been positive, including price-target increases tied to strong AI demand and data center spending.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) saw unusually large options trading activity on Wednesday. Traders bought 3,710,353 call options on the stock. This is an increase of 32% compared to the average daily volume of 2,809,777 call options.

NVIDIA Price Performance

Shares of NVDA traded up $5.05 during trading hours on Wednesday, hitting $225.83. The stock had a trading volume of 149,023,132 shares, compared to its average volume of 170,590,000. The company's fifty day moving average is $189.54 and its two-hundred day moving average is $187.47. The company has a debt-to-equity ratio of 0.05, a current ratio of 3.91 and a quick ratio of 3.24. NVIDIA has a 52 week low of $129.16 and a 52 week high of $227.84. The stock has a market capitalization of $5.49 trillion, a price-to-earnings ratio of 46.09, a P/E/G ratio of 0.72 and a beta of 2.25.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its earnings results on Wednesday, February 25th. The computer hardware maker reported $1.62 earnings per share for the quarter, topping the consensus estimate of $1.54 by $0.08. NVIDIA had a net margin of 55.60% and a return on equity of 97.37%. The business had revenue of $68.13 billion for the quarter, compared to analyst estimates of $65.56 billion. During the same quarter in the prior year, the firm earned $0.89 EPS. The firm's quarterly revenue was up 73.2% compared to the same quarter last year. On average, analysts anticipate that NVIDIA will post 7.84 EPS for the current year.

NVIDIA Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 1st. Shareholders of record on Wednesday, March 11th were issued a dividend of $0.01 per share. The ex-dividend date of this dividend was Wednesday, March 11th. This represents a $0.04 dividend on an annualized basis and a yield of 0.0%. NVIDIA's dividend payout ratio is currently 0.82%.

Insider Buying and Selling

In other NVIDIA news, Director Mark A. Stevens sold 221,682 shares of the business's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $173.68, for a total value of $38,501,729.76. Following the completion of the sale, the director directly owned 7,399,771 shares of the company's stock, valued at $1,285,192,227.28. The trade was a 2.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Colette Kress sold 20,000 shares of the firm's 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 $3,497,800.00. Following the completion of the transaction, the chief financial officer directly owned 83,060 shares in the company, valued at $14,526,363.40. The trade was a 19.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 906,336 shares of company stock valued at $162,802,518. 4.17% of the stock is owned by company insiders.

Institutional Investors Weigh In On NVIDIA

A number of hedge funds have recently added to or reduced their stakes in the stock. PMG Family Office LLC bought a new stake in shares of NVIDIA in the third quarter valued at about $2,150,000. Oak Ridge Investments LLC raised its stake in NVIDIA by 2.2% in the third quarter. Oak Ridge Investments LLC now owns 970,860 shares of the computer hardware maker's stock valued at $181,143,000 after purchasing an additional 20,559 shares in the last quarter. Weaver Capital Management LLC raised its stake in NVIDIA by 5.5% in the fourth quarter. Weaver Capital Management LLC now owns 85,216 shares of the computer hardware maker's stock valued at $15,893,000 after purchasing an additional 4,439 shares in the last quarter. Circle Wealth Management LLC raised its stake in NVIDIA by 16.1% in the third quarter. Circle Wealth Management LLC now owns 107,787 shares of the computer hardware maker's stock valued at $20,111,000 after purchasing an additional 14,936 shares in the last quarter. Finally, Sunburst Financial Group LLC raised its stake in NVIDIA by 11.3% in the fourth quarter. Sunburst Financial Group LLC now owns 42,515 shares of the computer hardware maker's stock valued at $7,929,000 after purchasing an additional 4,300 shares in the last quarter. Institutional investors own 65.27% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on NVDA. New Street Research reduced their price objective on shares of NVIDIA from $307.00 to $275.00 and set a "buy" rating for the company in a research note on Tuesday, March 31st. Wall Street Zen cut shares of NVIDIA from a "strong-buy" rating to a "buy" rating in a research note on Sunday, April 26th. BTIG Research started coverage on shares of NVIDIA in a report on Wednesday, April 15th. They issued a "buy" rating on the stock. JPMorgan Chase & Co. boosted their price target on shares of NVIDIA from $250.00 to $265.00 and gave the company an "overweight" rating in a report on Thursday, February 26th. Finally, KeyCorp reissued an "overweight" rating and issued a $275.00 price target on shares of NVIDIA in a report on Tuesday, March 17th. Four equities research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus target price of $277.32.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Bank of America raised its price target on NVIDIA to $320 from $300 and reiterated a Buy rating, citing a larger long-term AI data center market and accelerating AI spending. BofA Hikes NVIDIA Price Target to $320 on Massive $1.7 Trillion AI Data Center Forecast
• Positive Sentiment: Citi said NVIDIA’s upcoming Q1 revenue could beat consensus by about $1.4 billion, reinforcing expectations for another strong earnings report. Nvidia's Q1 revenue expected to surpass consensus by $1.4B: Citi
• Positive Sentiment: Jensen Huang’s inclusion in President Trump’s China trip is being viewed as potentially helpful for NVIDIA’s China outlook, with traders hoping for improved export access or licensing developments. Nvidia CEO joins Trump's mission to 'open up' China
• Positive Sentiment: Options activity was unusually strong, with call volume running well above normal, suggesting traders are positioning for further upside.
• Neutral Sentiment: The stock’s momentum is also being supported by broader AI enthusiasm, record-high valuations, and bullish coverage from multiple outlets ahead of earnings. Nvidia Rally Propels Stocks to New Records
• Negative Sentiment: Some articles highlighted ongoing China/export-control risk and elevated concentration in AI stocks, which could limit upside if the macro or policy backdrop turns less favorable. Nvidia market cap hits $5.4T despite zero China revenue amid US export controls

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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