NVIDIA (NASDAQ:NVDA) Shares Climb 1.1% - Here's Why

Key Points

• NVIDIA shares rose 1.1% to $230.86, supported by a new $150 billion buyback authorization, which raises total repurchase capacity to approximately $235 billion through 2028 and could boost earnings per share.
• Investor optimism was reinforced by Barclays raising its 2027 hyperscaler-revenue estimate to $401 billion and Cantor Fitzgerald maintaining an Overweight rating with a $350 price target. Analysts overall rate the stock “Buy,” with a consensus target of $324.14.
• Despite strong AI demand and quarterly revenue growth of 105.9%, concerns remain about NVIDIA’s financing arrangements for AI customers and growing competition from China’s DeepSeek and Huawei.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) shares traded up 1.1% during trading on Thursday. The stock traded as high as $232.29 and last traded at $230.86. Approximately 97,308,467 shares were traded during mid-day trading, a decline of 37% from the average daily volume of 153,855,875 shares. The stock had previously closed at $228.38.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA authorized an additional $150 billion stock-repurchase program, bringing total available buyback capacity to approximately $235 billion through 2028. The move signals management confidence in cash generation and could support earnings per share by reducing the share count. Nvidia authorizes $150 billion buyback
• Positive Sentiment: Barclays raised its estimate for NVIDIA’s 2027 hyperscaler revenue to $401 billion, above its prior $370 billion forecast, based on continued spending by major cloud providers on AI data centers. Barclays hyperscaler revenue estimate
• Positive Sentiment: Cantor Fitzgerald reaffirmed an Overweight rating and set a $350 price target, implying substantial upside from recent levels. Other coverage continues to point to strong demand for NVIDIA’s next-generation platforms, including Vera Rubin. AI chip boom and NVIDIA outlook
• Positive Sentiment: NVIDIA’s participation in GMI Cloud’s $668 million financing round and expanding GPU deployments reinforce demand for its accelerated-computing ecosystem. GMI Cloud financing
• Neutral Sentiment: The stock is approaching record territory ahead of hyperscaler capital-spending updates and other fourth-quarter catalysts. That creates potential for further momentum, but expectations are already elevated. NVIDIA approaches record territory
• Negative Sentiment: Wall Street is questioning NVIDIA’s use of financing arrangements to support AI customers’ chip purchases. Critics warn that such “circular financing” could expose the company to credit losses if weaker customers cannot meet their obligations. NVIDIA financing concerns
• Negative Sentiment: China’s DeepSeek and Huawei are developing software intended to improve Huawei’s alternative AI chips, potentially challenging NVIDIA’s software advantage and limiting growth in China. DeepSeek and Huawei competition

Analysts Set New Price Targets

A number of research firms have issued reports on NVDA. Citigroup reaffirmed a "buy" rating and set a $315.00 price objective (up from $300.00) on shares of NVIDIA in a report on Thursday, August 27th. Benchmark restated a "buy" rating and set a $335.00 price target on shares of NVIDIA in a report on Thursday, August 27th. Needham & Company LLC restated a "buy" rating and issued a $300.00 target price on shares of NVIDIA in a research note on Friday, September 4th. Rosenblatt Securities reissued a "buy" rating and set a $390.00 target price on shares of NVIDIA in a report on Tuesday. Finally, China Renaissance increased their price objective on NVIDIA from $319.00 to $330.00 and gave the stock a "buy" rating in a report on Monday, August 31st. Four equities research analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Buy" and a consensus target price of $324.14.

NVIDIA Trading Up 1.1%

The stock has a market capitalization of $5.56 trillion, a P/E ratio of 29.19, a price-to-earnings-growth ratio of 1.76 and a beta of 2.22. The stock's fifty day moving average price is $217.76 and its two-hundred day moving average price is $206.94. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating analysts' consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The company had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. During the same quarter in the previous year, the company posted $1.05 EPS. NVIDIA's revenue for the quarter was up 105.9% on a year-over-year basis. Equities research analysts forecast that NVIDIA Corporation will post 9.25 EPS for the current year.

NVIDIA Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.4%. NVIDIA's dividend payout ratio (DPR) is currently 12.64%.

NVIDIA announced that its Board of Directors has approved a share buyback plan on Monday, September 28th that allows the company to buyback $150.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

Insider Buying and Selling at NVIDIA

In other news, Director Mark Stevens sold 622,239 shares of the firm's stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the completion of the transaction, the director directly owned 2,336,531 shares in the company, valued at $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Timothy Teter sold 30,460 shares of NVIDIA stock in a transaction on Monday, September 21st. The stock was sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the sale, the executive vice president directly owned 2,687,660 shares of the company's stock, valued at approximately $598,810,648. The trade was a 1.12% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 1,766,118 shares of company stock valued at $399,450,353. Corporate insiders own 3.94% of the company's stock.

Institutional Trading of NVIDIA

Several hedge funds have recently bought and sold shares of the stock. Boyd Wealth Management LLC grew its position in shares of NVIDIA by 273.4% during the second quarter. Boyd Wealth Management LLC now owns 9,145 shares of the computer hardware maker's stock worth $1,830,000 after purchasing an additional 6,696 shares in the last quarter. Altshuler Shaham Ltd boosted its stake in NVIDIA by 6,451.9% in the 1st quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker's stock worth $111,134,000 after purchasing an additional 627,510 shares during the period. Storen Legacy Partners LLC purchased a new stake in NVIDIA during the 4th quarter valued at approximately $1,350,000. Baker Tilly Wealth Management LLC grew its holdings in NVIDIA by 7.4% during the 2nd quarter. Baker Tilly Wealth Management LLC now owns 71,898 shares of the computer hardware maker's stock valued at $14,386,000 after buying an additional 4,958 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its position in shares of NVIDIA by 3.6% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 26,652,420 shares of the computer hardware maker's stock valued at $4,970,704,000 after buying an additional 936,506 shares during the last quarter. Institutional investors own 65.27% of the company's stock.

About NVIDIA

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company's products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

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