NVIDIA (NASDAQ:NVDA) Trading 8.7% Higher Following Better-Than-Expected Earnings

NVIDIA Corporation (NASDAQ:NVDA)’s stock price rose 8.7% on Thursday following a stronger than expected earnings report. The company traded as high as $230.47 and last traded at $227.98. Approximately 294,621,800 shares changed hands during mid-day trading, an increase of 85% from the average daily volume of 159,458,188 shares. The stock had previously closed at $209.66.

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 96.94% and a net margin of 62.97%.The company had revenue of $96.22 billion during the quarter, compared to analysts’ expectations of $92.27 billion. During the same quarter in the previous year, the firm earned $1.05 earnings per share. The business’s quarterly revenue was up 105.9% compared to the same quarter last year.

NVIDIA Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be given a dividend of $0.25 per share. 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 payout ratio is 15.31%.

NVIDIA announced that its board has initiated a stock repurchase program on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Record results and guidance: NVIDIA reported $96.2 billion in quarterly revenue, up 106% year over year, while adjusted EPS of $2.22 exceeded the $2.09 consensus. Data Center revenue rose 117% to $89 billion, and third-quarter revenue guidance of approximately $108 billion was above expectations. Nvidia rises after signaling longer AI spending runway
• Positive Sentiment: AI demand outlook strengthened: Management projected roughly 70% revenue growth for fiscal 2028, well above the approximately 45% analysts had expected. CEO Jensen Huang said AI infrastructure demand is accelerating and that the industry is increasingly constrained by its ability to build enough compute. Nvidia’s 70% growth forecast
• Positive Sentiment: Customer commitments and ecosystem expansion: Amazon Web Services agreed to deploy 2 million additional NVIDIA GPUs, while the Vera Rubin platform entered full production. Reported plans to acquire open-source AI platform Hugging Face for about $12.9 billion could broaden NVIDIA’s software ecosystem, although the deal is not yet certain. Nvidia closes in on Hugging Face acquisition
• Positive Sentiment: Analyst support increased: JPMorgan, RBC, Wedbush and Truist raised their price targets, with several targets reaching or exceeding $320. The company also returned approximately $26 billion through buybacks and dividends.
• Neutral Sentiment: Capital strategy under scrutiny: NVIDIA is working with major financial firms to mobilize more than $500 billion for AI infrastructure and plans additional equity investments. Investors view this as a way to expand demand, but some remain concerned about customer financing and potentially circular AI spending.
• Negative Sentiment: Margins and supply risks: Gross margin is expected to decline from 75% to approximately 74% in the third quarter as memory, advanced packaging and power remain constrained. Operating expenses also grew 55% year over year.
• Negative Sentiment: China and competition remain headwinds: NVIDIA’s outlook assumes no Data Center compute revenue from China, while custom chips from OpenAI, Microsoft and other hyperscalers could eventually pressure demand and margins. Investor Michael Burry also urged caution despite acknowledging that the shares appear inexpensive relative to growth.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. Argus upped their target price on NVIDIA from $220.00 to $270.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Citigroup reissued a “buy” rating and issued a $315.00 target price (up from $300.00) on shares of NVIDIA in a report on Thursday. Cantor Fitzgerald restated an “overweight” rating and set a $350.00 target price on shares of NVIDIA in a research report on Monday. Bank of America reiterated a “buy” rating and issued a $350.00 price target (up from $320.00) on shares of NVIDIA in a research report on Thursday, May 21st. Finally, BMO Capital Markets set a $340.00 price objective on NVIDIA and gave the company an “outperform” rating in a report on Thursday, August 20th. Two equities research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $322.61.

Insider Transactions at NVIDIA

In other NVIDIA news, Director Mark A. Stevens sold 885,000 shares of the company’s stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the transaction, the director 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Stephen C. Neal sold 15,500 shares of the company’s stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total value of $3,343,815.00. Following the transaction, the director directly owned 116,135 shares in the company, valued at $25,053,803.55. This trade represents a 11.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,900,500 shares of company stock valued at $410,449,265 over the last ninety days. 3.94% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NVIDIA

Large investors have recently bought and sold shares of the business. Retirement Wealth Solutions LLC lifted its stake in NVIDIA by 1.2% in the 2nd quarter. Retirement Wealth Solutions LLC now owns 4,121 shares of the computer hardware maker’s stock valued at $825,000 after purchasing an additional 47 shares during the last quarter. LightSquare Wealth Management LLC boosted its holdings in shares of NVIDIA by 0.3% during the 2nd quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker’s stock valued at $3,741,000 after acquiring an additional 49 shares in the last quarter. Defender Capital LLC. grew its position in NVIDIA by 0.7% during the 2nd quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker’s stock worth $1,507,000 after acquiring an additional 50 shares during the last quarter. Kooman & Associates increased its holdings in NVIDIA by 0.6% in the 2nd quarter. Kooman & Associates now owns 8,464 shares of the computer hardware maker’s stock worth $1,694,000 after purchasing an additional 50 shares in the last quarter. Finally, Roof Eidam Maycock Peralta LLC increased its holdings in NVIDIA by 0.3% in the 2nd quarter. Roof Eidam Maycock Peralta LLC now owns 18,827 shares of the computer hardware maker’s stock worth $3,767,000 after purchasing an additional 50 shares in the last quarter. 65.27% of the stock is currently owned by institutional investors and hedge funds.

NVIDIA Trading Up 8.7%

The firm’s 50 day simple moving average is $207.61 and its two-hundred day simple moving average is $200.35. The stock has a market capitalization of $5.52 trillion, a P/E ratio of 34.91, a P/E/G ratio of 0.42 and a beta of 2.23. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04.

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.