NVIDIA (NASDAQ:NVDA) Stock Price Up 1.3% - Time to Buy?

Key Points

• NVIDIA shares rose 1.3% to $233.95, while analysts maintained a broadly bullish outlook. The consensus rating is “Buy,” with an average price target of $320.71.
• Positive sentiment is being driven by strong AI demand, record quarterly results, and NVIDIA’s $150 billion share-buyback authorization, which increased remaining repurchase capacity to approximately $235 billion through 2028.
• Key risks include potential margin pressure from supply bottlenecks, concerns about customer financing and accounts receivable, insider selling, and possible regulatory scrutiny linked to reports of restricted-chip shipments to China.

Shares of NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) shot up 1.3% during trading on Friday. The company traded as high as $237.88 and last traded at $233.95. Approximately 134,349,957 shares changed hands during mid-day trading, a decline of 13% from the average session volume of 153,858,594 shares. The stock had previously closed at $230.86.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Morgan Stanley named NVIDIA its top semiconductor pick and maintained an Overweight rating with a $300 price target, citing the company’s positioning for continued AI infrastructure expansion. Morgan Stanley sets Nvidia stock price target after naming it a top pick
• Positive Sentiment: NVIDIA’s $150 billion buyback expansion raised its remaining authorization to approximately $235 billion through 2028. The program signals management confidence, may support earnings per share and provides a significant source of demand for the stock. Can NVIDIA’s $150B Repurchase Plan Enhance Shareholder Value?
• Positive Sentiment: Analysts continue to see strong upside from AI spending. Barclays estimated NVIDIA could generate $401 billion in hyperscaler revenue in 2027, above its prior $370 billion forecast, while other commentary highlighted more than doubling quarterly revenue and a valuation viewed as reasonable relative to growth. Nvidia stock gains as Barclays sees $401B hyperscaler revenue in 2027
• Positive Sentiment: CoreWeave’s launch of NVIDIA’s Vera Rubin platform and new enterprise offerings reinforces demand for the company’s latest AI systems. Broad semiconductor strength and bullish views on NVIDIA’s earnings revisions also supported sentiment. CoreWeave Unleashes Nvidia’s Vera Rubin
• Neutral Sentiment: Amazon reportedly is exploring ways to move roughly $8 billion of NVIDIA AI chips off its balance sheet, including a possible leaseback structure. This could create financing or demand questions, but it may also help Amazon fund additional AI capacity. Amazon Looks to Offload $8B of Nvidia AI Chips From Its Balance Sheet
• Negative Sentiment: Investors remain concerned about accounts receivable, customer financing and potentially circular funding arrangements supporting AI infrastructure purchases. Critics also warn that supply bottlenecks may persist for at least two years and that gross margins could temporarily weaken.
• Negative Sentiment: Reports that restricted NVIDIA chips reached China through alleged smuggling and state-backed financing could increase regulatory scrutiny, enforcement costs and the risk of tighter export controls. California man smuggled $300 million in Nvidia chips to China

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on NVDA shares. KGI Securities raised their price target on NVIDIA from $335.00 to $345.00 in a research note on Thursday, August 27th. Wall Street Zen downgraded NVIDIA from a "strong-buy" rating to a "buy" rating in a research note on Saturday, September 26th. Weiss Ratings reiterated a "buy (b)" rating on shares of NVIDIA in a research report on Wednesday, July 8th. Royal Bank Of Canada boosted their price objective on NVIDIA from $300.00 to $330.00 and gave the company an "outperform" rating in a research report on Thursday, August 27th. Finally, Evercore set a $465.00 target price on shares of NVIDIA and gave the stock an "outperform" rating in a research report on Thursday, August 27th. Four analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Buy" and an average target price of $320.71.

NVIDIA Stock Up 1.3%

The business's 50 day simple moving average is $218.20 and its 200 day simple moving average is $207.30. 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 market capitalization of $5.64 trillion, a PE ratio of 29.58, a PEG ratio of 1.76 and a beta of 2.22.

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

NVIDIA Announces Dividend

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

NVIDIA declared that its Board of Directors has approved a share buyback program on Monday, September 28th that authorizes the company to repurchase $150.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's board believes its shares are undervalued.

Insider Activity

In related news, CFO Colette Kress sold 34,918 shares of the stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the sale, the chief financial officer owned 765,103 shares in the company, valued at approximately $167,595,812.15. This represents a 4.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy Teter sold 30,460 shares of the firm's 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 owned 2,687,660 shares of the company's stock, valued at approximately $598,810,648. This represents a 1.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 1,766,118 shares of company stock valued at $399,450,353. 3.94% of the stock is currently owned by insiders.

Hedge Funds Weigh In On NVIDIA

Hedge funds have recently added to or reduced their stakes in the company. State Street Corp lifted its stake in shares of NVIDIA by 1.6% during the 2nd quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker's stock worth $202,047,568,000 after acquiring an additional 15,897,836 shares during the last quarter. Bank of America Corp DE lifted its position in shares of NVIDIA by 2.2% during the second quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker's stock worth $39,090,956,000 after purchasing an additional 4,165,875 shares during the last quarter. Invesco Ltd. boosted its stake in shares of NVIDIA by 0.3% during the fourth quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker's stock valued at $26,714,167,000 after purchasing an additional 446,178 shares during the period. Amundi grew its holdings in shares of NVIDIA by 10.4% in the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock worth $23,329,141,000 after purchasing an additional 12,575,177 shares during 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 during the period. 65.27% of the stock is currently owned by institutional investors.

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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