NVIDIA's (NVDA) Buy Rating Reiterated at Needham & Company LLC

Key Points

• Needham & Company LLC reaffirmed NVIDIA as a “buy” and set a $270 price target, implying about 19.86% upside from the prior close.
• Other analysts remain broadly bullish, with several firms raising targets in recent reports and the stock carrying an overall “Buy” consensus with an average target price of $305.38.
• NVIDIA’s latest quarter beat expectations, posting $1.87 EPS on revenue of $81.62 billion, while the board also authorized an $80 billion share buyback.

NVIDIA (NASDAQ:NVDA - Get Free Report)'s stock had its "buy" rating reaffirmed by investment analysts at Needham & Company LLC in a report released on Tuesday,Benzinga reports. They presently have a $270.00 price target on the computer hardware maker's stock. Needham & Company LLC's target price points to a potential upside of 19.86% from the company's previous close.

NVDA has been the subject of a number of other research reports. Mizuho set a $300.00 price objective on NVIDIA in a research report on Thursday, May 21st. President Capital lifted their price objective on NVIDIA from $280.00 to $295.00 and gave the stock a "buy" rating in a research note on Thursday, May 21st. Rosenblatt Securities reiterated a "buy" rating and set a $325.00 target price on shares of NVIDIA in a research report on Thursday, May 21st. Itau BBA Securities reissued a "market perform" rating on shares of NVIDIA in a report on Thursday, February 26th. Finally, Argus boosted their price target on shares of NVIDIA from $220.00 to $270.00 and gave the stock a "buy" rating in a research report on Thursday, May 21st. Three research analysts have rated the stock with a Strong Buy rating, forty-seven have issued a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Buy" and an average target price of $305.38.

NVIDIA Price Performance

NVDA traded up $14.12 on Tuesday, hitting $225.26. 211,390,549 shares of the company's stock traded hands, compared to its average volume of 159,809,696. NVIDIA has a one year low of $135.40 and a one year high of $236.54. 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 firm has a market cap of $5.45 trillion, a price-to-earnings ratio of 34.81, a P/E/G ratio of 0.51 and a beta of 2.22. The company's 50 day simple moving average is $200.19 and its 200-day simple moving average is $189.85.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating 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 quarter last year, the business posted $0.81 earnings per share. The company's revenue for the quarter was up 85.2% compared to the same quarter last year. As a group, research analysts anticipate that NVIDIA will post 8.04 EPS for the current year.

NVIDIA announced that its Board of Directors has initiated a share buyback program on Wednesday, May 20th that allows the company to buyback $80.00 billion in shares. This buyback authorization allows the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other news, 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 completion of the sale, the chief financial officer directly owned 881,387 shares of the company's stock, valued at approximately $154,145,772.43. The trade was a 4.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Aarti S. Shah sold 19,000 shares of the company's stock in a transaction dated Thursday, March 19th. The stock was sold at an average price of $176.71, for a total transaction of $3,357,490.00. Following the completion of the transaction, the director owned 36,007 shares in the company, valued at approximately $6,362,796.97. The trade was a 34.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 906,961 shares of company stock worth $162,936,268 over the last ninety days. Corporate insiders own 3.94% of the company's stock.

Hedge Funds Weigh In On NVIDIA

Hedge funds have recently added to or reduced their stakes in the stock. State Street Corp lifted its holdings in shares of NVIDIA by 1.2% during the 4th quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker's stock valued at $184,911,111,000 after purchasing an additional 11,451,386 shares during the last quarter. Geode Capital Management LLC increased its position in NVIDIA by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker's stock valued at $109,446,217,000 after buying an additional 3,383,441 shares in the last quarter. Norges Bank acquired a new position in NVIDIA during the 4th quarter valued at about $62,244,133,000. Bank of America Corp DE raised its stake in NVIDIA by 2.1% in the first quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker's stock valued at $33,345,453,000 after buying an additional 4,019,505 shares during the last quarter. Finally, Legal & General Group Plc raised its stake in NVIDIA by 1.5% in the third quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker's stock valued at $33,808,862,000 after buying an additional 2,609,560 shares during the last quarter. 65.27% of the stock is currently owned by institutional investors.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s RTX Spark/N1X launch is pushing the company into AI PCs, creating a new revenue opportunity and boosting sentiment around its long-term growth. Nvidia jumps into PCs with new Arm-based chip debuting in laptops from Microsoft, Dell, HP
• Positive Sentiment: Analysts and industry partners continue to back NVIDIA’s AI platform, with new collaborations across cloud, hardware, and enterprise software strengthening the company’s ecosystem. NVIDIA DSX Gives Infrastructure Builders the Playbook for AI Factories
• Positive Sentiment: Management said supply is strong enough to support robust CPU and GPU growth, reducing near-term execution concerns. Nvidia CEO says has capacity to supply robust CPU and GPU growth
• Neutral Sentiment: News that Chinese labs with military ties are seeking access to NVIDIA’s H200 chips underscores demand, but also keeps export-control risks and geopolitical scrutiny in focus. Nvidia Chips Sought by Chinese Labs With Military Ties
• Negative Sentiment: The U.S. also moved to tighten AI-chip shipment rules tied to Chinese firms outside China, a reminder that regulation could still limit NVIDIA’s addressable market. US takes step to halt Nvidia AI chip shipments to Chinese firms outside China

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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