NVIDIA (NASDAQ:NVDA) Shares Up 2.9% - Here's What Happened

Key Points

• NVIDIA shares rose 2.9% to $173.73 in mid-day trading, with volume 75% above its daily average. Strong results from cloud customer CoreWeave helped ease concerns about slowing AI infrastructure spending.
• Investors are focused on NVIDIA’s Nov. 17 earnings as a test of AI demand. Analyst views are mixed: Baird cut its rating and price target amid concerns about 2027 growth, while the broader analyst consensus remains “Buy” with a $314.24 target.
• NVIDIA’s latest reported quarter beat estimates, with revenue up 105.9% year over year, and the company has authorized a $150 billion share repurchase program.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) shares shot up 2.9% during mid-day trading on Wednesday. The stock traded as high as $177.54 and last traded at $173.73. 267,044,548 shares were traded during trading, an increase of 75% from the average daily volume of 152,563,109 shares. The stock had previously closed at $168.89.

Recent NVIDIA Headlines

Investors following NVDA have been watching these headlines:

• Positive Sentiment: Strong results from cloud-computing customer CoreWeave helped ease concerns that AI infrastructure spending is slowing, lifting sentiment toward NVIDIA and other AI-chip stocks. CoreWeave rally signals relief for Nvidia
• Neutral Sentiment: NVIDIA’s Nov. 17 earnings are a key near-term test of AI demand and growth expectations. Investors will weigh results against a more cautious outlook for 2027 spending. Nvidia earnings and market impact
• Negative Sentiment: Analyst caution adds pressure: Baird cut its rating to Neutral and reduced its price target to $200 from $500, citing possible slower 2027 growth and uncertainty around Huang. Hot inflation and competition from Alphabet’s new AI chips are additional risks. Baird downgrade and analyst views

Analysts Set New Price Targets

NVDA has been the subject of a number of analyst reports. Weiss Ratings lowered NVIDIA from a "buy (b+)" rating to a "buy (b)" rating in a research report on Monday, November 2nd. Royal Bank Of Canada reissued an "outperform" rating and set a $330.00 target price on shares of NVIDIA in a report on Monday. Rosenblatt Securities reissued a "buy" rating and issued a $390.00 price target on shares of NVIDIA in a report on Tuesday, September 29th. Melius Research reduced their price objective on NVIDIA from $420.00 to $315.00 and set a "buy" rating for the company in a research note on Monday, November 2nd. Finally, Zacks Research upgraded shares of NVIDIA from a "hold" rating to a "strong-buy" rating in a research report on Monday, September 21st. Five research analysts have rated the stock with a Strong Buy rating, forty-six have issued a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Buy" and a consensus target price of $314.24.

NVIDIA Stock Performance

The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. The firm has a 50-day simple moving average of $217.99 and a two-hundred day simple moving average of $204.42. The company has a market capitalization of $4.19 trillion, a price-to-earnings ratio of 21.96, a price-to-earnings-growth ratio of 1.37 and a beta of 2.21.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share 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 company had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. During the same period last year, the business earned $1.05 EPS. The business's quarterly revenue was up 105.9% on a year-over-year basis. As a group, sell-side analysts forecast that NVIDIA Corporation will post 9.30 earnings per share for the current fiscal year.

NVIDIA Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were given a $0.25 dividend. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.6%. NVIDIA's payout ratio is currently 12.64%.

NVIDIA announced that its board has authorized a stock buyback program on Monday, September 28th that authorizes the company to repurchase $150 billion in shares. This repurchase authorization authorizes the computer hardware maker to buy up to 2.8% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's management believes its shares are undervalued.

Insider Buying and Selling at NVIDIA

In related news, CFO Colette Kress sold 34,918 shares of the firm's stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total value of $7,648,787.90. Following the transaction, the chief financial officer directly owned 765,103 shares in the company, valued at approximately $167,595,812.15. This trade represents a 4.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the company's stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the sale, the director owned 2,336,531 shares of the company's stock, valued at $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,766,118 shares of company stock worth $399,450,353 over the last 90 days. Insiders own 3.94% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Intelligent Financial Strategies bought a new position in NVIDIA during the third quarter valued at about $26,000. Montgomery Financial Services LLC bought a new stake in shares of NVIDIA in the 2nd quarter worth approximately $28,000. Langley Wealth Management LLC acquired a new stake in shares of NVIDIA during the 2nd quarter worth approximately $34,000. Newton One Investments LLC acquired a new stake in shares of NVIDIA during the 3rd quarter worth approximately $34,000. Finally, Phillip James Consulting Co. bought a new stake in shares of NVIDIA during the first quarter valued at approximately $40,000. 65.27% of the stock is owned by institutional investors.

About NVIDIA

NVIDIA Corporation develops graphics processing units (GPUs), accelerated computing platforms and related software. Founded in 1993, the company first became widely known for GPUs used in PC gaming and professional graphics. Its technology now also supports artificial intelligence, scientific computing and other data-intensive applications. NVIDIA's offerings include GeForce products for gaming, data-center GPUs and systems for AI workloads, and networking products that connect computing infrastructure.

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