NVIDIA (NASDAQ:NVDA) Shares Up 3.2% - Should You Buy?

Key Points

• NVIDIA shares rose 3.2% to $224.41, supported by strong AI infrastructure demand, its expanded Equinix inference partnership, and reported talks to acquire Hugging Face for approximately $14 billion.
• Recent quarterly results significantly exceeded expectations: revenue reached $96.22 billion, up 105.9% year over year, while EPS was $2.22 versus the $2.09 consensus estimate. Analysts maintain a “Moderate Buy” consensus with an average price target of $324.23.
• Key risks include potential U.S. semiconductor tariffs, higher Treasury yields that could pressure technology valuations, rising competition from AMD, and concerns about circular financing in some AI infrastructure deals.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report)'s stock price was up 3.2% during mid-day trading on Wednesday . The company traded as high as $227.95 and last traded at $224.41. Approximately 153,042,318 shares changed hands during mid-day trading, a decline of 4% from the average daily volume of 159,181,719 shares. The stock had previously closed at $217.44.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA reportedly is in advanced discussions to acquire AI platform Hugging Face for approximately $14 billion. The deal could strengthen NVIDIA’s software ecosystem and help extend its competitive advantage beyond GPUs. Why Nvidia's $14 Billion Hugging Face Deal Would Make Total Sense
• Positive Sentiment: A stronger-than-expected outlook from Dell Technologies provided fresh evidence that hyperscalers and businesses continue to spend heavily on AI data-center infrastructure, supporting demand for NVIDIA’s accelerators and networking products. Why is Nvidia stock up over 4% today?
• Positive Sentiment: NVIDIA and Equinix expanded their partnership around AI inference, targeting enterprise deployments through a distributed inference program. The initiative supports NVIDIA’s strategy to capture growth as AI workloads move from training toward real-time usage. NVIDIA and Equinix Deepen Their AI Inference Partnership
• Positive Sentiment: Analyst Harlan Sur of J.P. Morgan reaffirmed a Buy rating and maintained a $320 price target, citing strong AI-driven growth. Other bullish commentary points to NVIDIA’s first fiscal-2028 revenue-growth outlook of roughly 70%, which was described as supply-constrained rather than demand-constrained. NVIDIA Buy Rating Reaffirmed
• Positive Sentiment: NVIDIA participated in a $125 million funding round for iPronics, whose optical networking technology is designed to connect very large AI-computing clusters. The investment could broaden NVIDIA’s exposure to data-center networking bottlenecks. Spain's iPronics raises $125 million from Nvidia
• Positive Sentiment: NVIDIA’s strong earnings and large market capitalization made it a major contributor to the broader indexes’ advance, indicating that investors continue to treat the company as a central beneficiary of the AI investment cycle. Nvidia Did the Heavy Lifting for the Major Market Indexes Today
• Neutral Sentiment: AMD is expanding a Saudi Arabian AI buildout with HUMAIN, targeting up to 1 gigawatt of capacity by 2030. The plan highlights growing competition for AI infrastructure spending, although it also confirms the scale of the overall market opportunity. Can AMD's Saudi AI Buildout Challenge NVIDIA and Broadcom?
• Neutral Sentiment: Reports that Anthropic committed $35 billion to compute through NVIDIA-backed Lambda reinforce demand for NVIDIA systems, but the financing links among NVIDIA, Lambda, data-center operators and AI customers are raising circular-financing concerns. Anthropic signs $35 billion cloud deal
• Negative Sentiment: U.S. Commerce Secretary Howard Lutnick said semiconductor tariffs are coming, reviving concerns about higher costs, supply-chain disruption and potential restrictions affecting NVIDIA’s international business. U.S. Semiconductor Tariffs Are Coming
• Negative Sentiment: Higher Treasury yields and elevated interest-rate expectations remain a valuation risk for high-growth technology stocks, potentially limiting multiple expansion even as NVIDIA’s earnings continue to grow. Wall Street Warns AI Stocks Are Starting to Trade Like Interest-Rate-Sensitive Credit

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on NVDA shares. Cantor Fitzgerald reissued an "overweight" rating and issued a $350.00 target price on shares of NVIDIA in a research report on Monday, August 24th. Tigress Financial reiterated a "strong-buy" rating and issued a $425.00 price target (up from $360.00) on shares of NVIDIA in a research note on Wednesday, May 27th. Mizuho set a $315.00 price objective on NVIDIA and gave the company an "outperform" rating in a report on Thursday, August 27th. Seaport Research Partners increased their target price on NVIDIA from $140.00 to $180.00 and gave the stock a "sell" rating in a report on Thursday, May 21st. Finally, Itau BBA Securities decreased their target price on NVIDIA from $256.00 to $218.00 in a research report on Wednesday, June 24th. Two analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $324.23.

NVIDIA Price Performance

The company has a market capitalization of $5.41 trillion, a P/E ratio of 28.37, a price-to-earnings-growth ratio of 1.73 and a beta of 2.22. The company has a fifty day moving average price of $208.68 and a 200 day moving average price of $201.27. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its quarterly earnings results 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 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 firm posted $1.05 EPS. The firm's quarterly revenue was up 105.9% on a year-over-year basis. On average, sell-side analysts forecast that NVIDIA Corporation will post 9.1 EPS for the current fiscal year.

NVIDIA Announces Dividend

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

NVIDIA declared that its board has authorized a stock repurchase program on Wednesday, May 20th that permits the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization permits the computer hardware maker to purchase up to 1.5% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's board of directors believes its stock is undervalued.

Insider Activity

In related news, Director Mark A. Stevens sold 885,000 shares of the stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the sale, the director directly owned 5,207,271 shares of the company's stock, valued at approximately $1,094,412,146.07. This represents a 14.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 3.94% of the stock is owned by insiders.

Hedge Funds Weigh In On NVIDIA

Several institutional investors have recently bought and sold shares of the stock. Lifetime Wealth Management P.C. acquired a new position in NVIDIA in the fourth quarter valued at about $26,000. Longview Financial Advisors Inc. bought a new position in shares of NVIDIA during the 1st quarter valued at about $27,000. Montgomery Financial Services LLC bought a new position in shares of NVIDIA during the 2nd quarter valued at about $28,000. Longfellow Investment Management Co. LLC increased its stake in 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, Langley Wealth Management LLC acquired a new stake in NVIDIA during the 2nd quarter worth approximately $34,000. 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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