NVIDIA (NASDAQ:NVDA) Shares Climb 1.7% - Still a Buy?

Key Points

• NVIDIA shares rose 1.7% after the board authorized an additional $150 billion in stock repurchases, bringing the remaining authorization to $235 billion through fiscal 2028. The buyback could support earnings per share by reducing the share count.
• NVIDIA reported strong quarterly results, with revenue up 105.9% year over year to $96.22 billion and EPS of $2.22, beating analyst estimates. The company also launched an open-source AI safety platform and could see additional demand if China approves purchases of certain processors.
• Analyst sentiment remains broadly positive, with a consensus “Buy” rating and an average price target of $324.14 versus the recent price near $228.86. However, risks include the company’s massive valuation, dependence on data-center spending, intensifying competition, China restrictions and AI-security concerns.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report)'s share price traded up 1.7% during trading on Monday. The company traded as high as $233.21 and last traded at $228.86. Approximately 141,167,517 shares were traded during mid-day trading, a decline of 9% from the average daily volume of 154,614,969 shares. The stock had previously closed at $225.07.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s board authorized an additional $150 billion in share repurchases, lifting the total remaining authorization to $235 billion through fiscal 2028. The move signals confidence in NVIDIA’s cash generation and could support earnings per share by reducing the share count. Nvidia adds $150 billion to existing share repurchase plan
• Positive Sentiment: The buyback announcement was the primary catalyst for the stock’s advance and helped NVIDIA outperform other semiconductor shares despite a weaker Nasdaq backdrop. Analysts cited NVIDIA’s exceptional AI-driven revenue and profit growth, with some viewing the valuation as attractive relative to major chipmakers. Nvidia Stock Rises as Company Boosts Buyback Plan
• Positive Sentiment: NVIDIA launched its open-source Open Agent Safety Platform, including tools intended to monitor AI agents, restrict access and shut them down when they violate policies. The platform could create an additional software and security opportunity while strengthening NVIDIA’s role in the broader AI ecosystem. Nvidia releases AI safety software
• Neutral Sentiment: Reports that China may allow companies such as Alibaba and ByteDance to purchase certain NVIDIA processors offer a potential demand catalyst, but the reports remain subject to government approval and ongoing U.S.-China export restrictions. Nvidia Chips for Alibaba and ByteDance
• Negative Sentiment: Some analysts remain bearish, citing NVIDIA’s enormous market capitalization, dependence on continued data-center spending, intensifying competition and China’s progress in AI. Recent AI-agent security incidents also highlight risks surrounding the rapid deployment of the technology NVIDIA supplies. The Anti-Nvidia Trade

Analyst Ratings Changes

Several equities research analysts recently commented on the company. Wells Fargo & Company reaffirmed an "overweight" rating and set a $315.00 price objective on shares of NVIDIA in a research report on Tuesday, August 11th. Melius Research set a $420.00 target price on NVIDIA in a research report on Thursday, August 27th. Phillip Securities upped their target price on shares of NVIDIA from $285.00 to $300.00 and gave the company a "buy" rating in a research note on Monday, August 31st. DA Davidson reaffirmed a "buy" rating and set a $300.00 price target on shares of NVIDIA in a report on Thursday, August 27th. Finally, China Renaissance lifted their price target on shares of NVIDIA from $319.00 to $330.00 and gave the stock a "buy" rating in a research note on Monday, August 31st. Four research analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, NVIDIA has a consensus rating of "Buy" and a consensus target price of $324.14.

NVIDIA Stock Performance

The company has a market cap of $5.52 trillion, a P/E ratio of 28.93, a P/E/G ratio of 1.74 and a beta of 2.22. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The business has a fifty day simple moving average of $216.52 and a two-hundred day simple moving average of $206.02.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) 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 business had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. During the same period in the previous year, the company posted $1.05 EPS. The business's quarterly revenue was up 105.9% compared to the same quarter last year. On average, sell-side analysts anticipate that NVIDIA Corporation will post 9.25 EPS for the current year.

NVIDIA Announces Dividend

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

Insider Buying and Selling at NVIDIA

In other news, EVP Timothy Teter sold 30,460 shares of NVIDIA stock in a transaction on Monday, September 21st. The shares were sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the transaction, the executive vice president owned 2,687,660 shares in the company, valued at $598,810,648. This trade represents a 1.12% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 34,918 shares of the business's stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the sale, the chief financial officer directly owned 765,103 shares of the company's stock, valued at approximately $167,595,812.15. The trade was a 4.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 1,766,118 shares of company stock valued at $399,450,353. Insiders own 3.94% of the company's stock.

Institutional Trading of NVIDIA

Hedge funds and other institutional investors have recently bought and sold shares of the stock. State Street Corp increased its stake in shares of NVIDIA by 1.6% in the second quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker's stock worth $202,047,568,000 after purchasing an additional 15,897,836 shares in the last quarter. Bank of America Corp DE lifted its stake in shares of NVIDIA by 2.2% during the 2nd quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker's stock valued at $39,090,956,000 after buying an additional 4,165,875 shares in the last quarter. Invesco Ltd. boosted its holdings in NVIDIA by 0.3% in the 4th quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker's stock worth $26,714,167,000 after buying an additional 446,178 shares during the period. Amundi increased its stake in NVIDIA by 10.4% in the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock worth $23,329,141,000 after buying an additional 12,575,177 shares in the last quarter. Finally, J. Stern & Co. LLP increased its stake in NVIDIA by 13,709.1% in the 4th 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. Hedge funds and other institutional investors own 65.27% of the company's stock.

NVIDIA Company Profile

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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