Royal Bank Of Canada Reaffirms Outperform Rating for NVIDIA (NASDAQ:NVDA)

Key Points

• Royal Bank of Canada reaffirmed its “outperform” rating on NVIDIA and maintained a $300 price target, implying approximately 37.9% upside from the reported $217.53 share price.
• Analyst sentiment remains broadly positive: NVIDIA has a consensus “Buy” rating and an average price target of $306.58, while recent targets range as high as $425.
• NVIDIA reported quarterly results above expectations, with $1.87 adjusted EPS and $81.61 billion in revenue, while authorizing an $80 billion share-repurchase program. Key risks include export controls, custom-chip competition and elevated expectations for AI spending.

NVIDIA (NASDAQ:NVDA - Get Free Report)'s stock had its "outperform" rating restated by equities researchers at Royal Bank Of Canada in a research note issued on Thursday,Benzinga reports. They presently have a $300.00 target price on the computer hardware maker's stock. Royal Bank Of Canada's price target would indicate a potential upside of 37.91% from the stock's current price.

NVDA has been the subject of several other reports. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $255.00 price target (up from $220.00) on shares of NVIDIA in a research report on Thursday, May 21st. Susquehanna restated a "positive" rating and set a $275.00 price target (up from $250.00) on shares of NVIDIA in a research report on Tuesday, May 12th. Wedbush lifted their price target on NVIDIA from $300.00 to $330.00 and gave the stock an "outperform" rating in a research note on Thursday, May 21st. Sanford C. Bernstein reiterated a "buy" rating on shares of NVIDIA in a research report on Monday, June 29th. Finally, Tigress Financial restated a "strong-buy" rating and issued a $425.00 target price (up from $360.00) on shares of NVIDIA in a report on Wednesday, May 27th. Three equities research analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus target price of $306.58.

NVIDIA Trading Down 0.0%

NVDA stock opened at $217.53 on Thursday. The company has a market capitalization of $5.26 trillion, a PE ratio of 33.34, a price-to-earnings-growth ratio of 0.44 and a beta of 2.23. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. NVIDIA has a one year low of $164.07 and a one year high of $236.54. The company's 50 day moving average price is $207.04 and its two-hundred day moving average price is $199.23.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.76 by $0.11. The company had revenue of $81.61 billion during the quarter, compared to analysts' expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm's revenue was up 85.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.81 EPS. As a group, analysts predict that NVIDIA will post 8.59 earnings per share for the current fiscal year.

NVIDIA declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to reacquire up to 1.5% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other NVIDIA news, Director Stephen C. Neal sold 15,500 shares of NVIDIA stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the sale, the director directly owned 116,135 shares of the company's stock, valued at approximately $25,053,803.55. The trade was a 11.77% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Mark A. Stevens sold 885,000 shares of the company's stock in a transaction that occurred on 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 transaction, the director owned 5,207,271 shares in the company, valued at $1,094,412,146.07. This trade represents a 14.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,901,125 shares of company stock worth $410,583,015 over the last three months. Company insiders own 3.94% of the company's stock.

Institutional Trading of NVIDIA

A number of hedge funds have recently made changes to their positions in the stock. State Street Corp grew its position in NVIDIA by 1.2% during the 4th quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker's stock valued at $184,911,111,000 after purchasing an additional 11,451,386 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of NVIDIA by 0.6% in the fourth quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker's stock worth $109,446,217,000 after buying an additional 3,383,441 shares in the last quarter. Norges Bank purchased a new stake in shares of NVIDIA during the fourth quarter valued at approximately $62,244,133,000. Bank of America Corp DE increased 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 valued at $39,090,956,000 after acquiring an additional 4,165,875 shares in the last quarter. Finally, Legal & General Group Plc raised its holdings in NVIDIA by 1.5% in the 3rd quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker's stock worth $33,808,862,000 after acquiring an additional 2,609,560 shares during the last quarter. 65.27% of the stock is owned by institutional investors.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Wall Street analysts are expressing confidence ahead of earnings. Stifel maintained a Buy rating and $282 price target, while Bank of America reportedly sees substantial upside, citing NVIDIA’s valuation discount, profitability and potential for stronger buybacks. Nvidia Stock Gets Votes of Confidence Ahead of Earnings
• Positive Sentiment: Earnings expectations remain strong. NVIDIA guided to roughly $91 billion in fiscal second-quarter revenue, while analysts’ average estimate is near $91.9 billion. Investors will focus on whether demand for its data-center GPUs and forward guidance prompt additional estimate increases. Nvidia Guided to $91 Billion. Wall Street Penciled In $92 Billion
• Positive Sentiment: Reports that limited shipments of H200 processors have reached China—and that additional deliveries could be permitted—suggest a possible revenue opportunity, although Beijing may restrict mainland use. Nvidia H200 Chips Reach China in Small Shipments
• Positive Sentiment: Supply-chain indicators from Foxconn and Super Micro are being cited as evidence that AI infrastructure demand remains healthy. NVIDIA is also expanding its ecosystem through robotics work with LG and by connecting Nordic GPU customers with data-center operators. What Foxconn and Super Micro Are Telling Us About the AI Boom
• Neutral Sentiment: NVIDIA is reportedly considering an investment in AI data-labeling company Mercor at a potential $20 billion valuation. The deal could strengthen NVIDIA’s model-development ecosystem, but its size and terms remain unknown. Nvidia Weighs Investment in Mercor
• Negative Sentiment: U.S. export controls and possible loopholes allowing Chinese firms to access NVIDIA computing power through overseas data centers remain regulatory risks that could limit sales or increase compliance costs. The U.S. Tries to Close an AI Chip Export Loophole
• Negative Sentiment: Investors are also weighing competition from custom AI chips and AMD, the sustainability of massive AI capital spending, and concerns that NVIDIA is helping finance parts of the infrastructure boom. These issues raise the risk of a sharp reaction if earnings or 2027 guidance fall short of lofty expectations.

About NVIDIA

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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