NVIDIA (NASDAQ:NVDA) Shares Up 1.8% - Time to Buy?

Key Points

• NVIDIA shares rose 1.8% to $228.45, supported by strong AI-server demand, platform expansion into inference and personal AI, and a proposed $12.93 billion acquisition of Hugging Face to strengthen its AI ecosystem.
• Wall Street remains broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $324.23. Recent quarterly results also exceeded expectations, including $2.22 EPS and $96.22 billion in revenue, up 105.9% year over year.
• Risks remain, including potential margin pressure from higher memory and networking costs, semiconductor tariff uncertainty, integration and developer-trust concerns surrounding Hugging Face, and substantial insider selling despite executives retaining large stakes.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report)'s share price rose 1.8% during trading on Thursday . The stock traded as high as $230.40 and last traded at $228.45. Approximately 131,383,770 shares traded hands during trading, a decline of 17% from the average session volume of 159,036,828 shares. The stock had previously closed at $224.41.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Hugging Face acquisition strengthens NVIDIA’s AI moat: NVIDIA agreed to acquire open-source AI platform Hugging Face for approximately $12.93 billion. The platform hosts millions of models, applications and datasets used by more than 18 million developers. Investors see the deal as a way to deepen CUDA adoption, improve model deployment across NVIDIA hardware and add a potentially recurring software component to the company’s business. CEO Jensen Huang said Hugging Face will remain open to the broader AI ecosystem. Nvidia to buy Hugging Face for nearly $13 billion
• Positive Sentiment: AI server demand remains robust: Dell Technologies’ strong results and higher guidance provided additional validation that enterprise and hyperscaler spending on AI servers continues to expand. This supports NVIDIA’s outlook for sustained demand for its accelerated-computing platforms. Nvidia gains confidence from expanding AI customers
• Positive Sentiment: Broader platform expansion: Partnerships with Equinix and Together AI on enterprise inference, investment in optical-networking startup iPronics, and the planned October launch of RTX Spark PCs with Lenovo and Acer extend NVIDIA’s reach beyond data-center GPUs into inference, connectivity and personal AI computing. Equinix, NVIDIA and Together AI accelerate enterprise inference
• Neutral Sentiment: Analyst sentiment is favorable: J.P. Morgan maintained a Buy rating and a $320 target, while broader consensus targets remain well above recent trading levels. These views could support the shares, although analyst targets are not guarantees. NVIDIA Buy rating reaffirmed
• Negative Sentiment: Margins and policy risks remain: Rising memory and networking costs may pressure NVIDIA’s gross margin, while potential semiconductor tariffs could raise supply-chain uncertainty. The Hugging Face deal also carries integration and developer-trust risks because the platform’s appeal has historically depended on neutrality.
• Negative Sentiment: Insider selling is a cautionary signal: Director Mark Stevens sold roughly $142.8 million of shares, and EVP Timothy Teter sold $6.5 million under a pre-arranged Rule 10b5-1 plan. Both executives retained substantial positions, limiting the signal’s significance, but the transactions may temper enthusiasm at elevated valuations. NVIDIA insider trading activity

Wall Street Analyst Weigh In

Several analysts recently issued reports on NVDA shares. Barclays reaffirmed an "overweight" rating on shares of NVIDIA in a report on Thursday, May 21st. Citic Securities upped their target price on shares of NVIDIA from $242.00 to $315.00 and gave the company a "buy" rating in a research note on Friday, May 22nd. Citigroup reiterated a "buy" rating and issued a $315.00 price target (up from $300.00) on shares of NVIDIA in a research note on Thursday, August 27th. Tigress Financial reissued a "strong-buy" rating and issued a $425.00 price objective (up from $360.00) on shares of NVIDIA in a report on Wednesday, May 27th. Finally, JPMorgan Chase & Co. increased their target price on NVIDIA from $280.00 to $320.00 and gave the stock an "overweight" rating in a report on Thursday, August 27th. Two investment analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $324.23.

NVIDIA Stock Up 1.8%

The firm's 50-day moving average price is $209.20 and its 200 day moving average price is $201.53. The firm has a market cap of $5.51 trillion, a P/E ratio of 28.88, a price-to-earnings-growth ratio of 1.71 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.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping 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 analyst estimates of $92.27 billion. During the same period in the prior year, the company posted $1.05 EPS. The business's revenue for the quarter was up 105.9% compared to the same quarter last year. As a group, research analysts expect that NVIDIA Corporation will post 9.1 earnings per share for the current year.

NVIDIA Announces Dividend

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

NVIDIA announced that its Board of Directors has approved a stock buyback program on Wednesday, May 20th that permits the company to buyback $80.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to buy up to 1.5% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In other news, EVP Timothy S. Teter sold 30,000 shares of the business's stock in a transaction on Monday, August 31st. The stock was sold at an average price of $217.88, for a total value of $6,536,400.00. Following the sale, the executive vice president owned 2,687,660 shares of the company's stock, valued at approximately $585,587,360.80. The trade was a 1.10% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 63,501 shares of the company's stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $220.06, for a total value of $13,974,030.06. Following the completion of the sale, the director owned 4,558,770 shares of the company's stock, valued at approximately $1,003,202,926.20. This trade represents a 1.37% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 1,563,501 shares of company stock valued at $335,380,530 over the last 90 days. 3.94% of the stock is currently owned by insiders.

Institutional Trading of NVIDIA

A number of hedge funds and other institutional investors have recently made changes to their positions in NVDA. Montgomery Financial Services LLC acquired a new stake in NVIDIA during the second quarter valued at $28,000. Lifetime Wealth Management P.C. acquired a new position in NVIDIA in the 4th quarter worth about $26,000. Longview Financial Advisors Inc. purchased a new stake in shares of NVIDIA during the 1st quarter worth about $27,000. Longfellow Investment Management Co. LLC raised its stake in shares of NVIDIA by 47.9% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock worth $33,000 after purchasing an additional 67 shares in the last quarter. Finally, Phillip James Consulting Co. acquired a new stake in shares of NVIDIA during the 1st quarter valued at about $40,000. 65.27% of the stock is currently owned by institutional investors.

NVIDIA Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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