NVIDIA (NASDAQ:NVDA) Trading 2.5% Higher – Time to Buy?

NVIDIA Corporation (NASDAQ:NVDA) was up 2.5% during mid-day trading on Thursday . The stock traded as high as $219.91 and last traded at $219.34. 92,301,833 shares were traded during trading, a decline of 41% from the average daily volume of 156,200,719 shares. The stock had previously closed at $213.90.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: CEO Jensen Huang said NVIDIA expects to sell twice as many chips next year as it does this year. The comments eased concerns about an AI-spending slowdown and support expectations for sustained data-center growth. Jensen Huang says Nvidia will sell twice as many chips next year
• Positive Sentiment: NVIDIA’s quantum-computing collaboration with IonQ, Oak Ridge National Laboratory and the University of Tennessee demonstrated an AI method that reduced quantum-circuit compilation from about 11 minutes to 28 seconds. The result strengthens NVIDIA’s CUDA-Q and accelerated-computing ecosystem beyond conventional AI workloads. IonQ and NVIDIA Just Cracked a Major Quantum Computing Bottleneck
• Positive Sentiment: Reports that Apple is discussing NVIDIA’s high-speed networking technology for its planned AI servers highlight continued demand for NVIDIA’s networking products, even as major customers develop their own chips. Apple Is Quietly Building an AI Advantage Few Expected
• Neutral Sentiment: NVIDIA benefited from a third consecutive session of strength across semiconductor stocks, with AMD, Broadcom and the semiconductor ETF also advancing. The sector-wide move supports momentum but is less company-specific. Semiconductor Rebound Broadens
• Negative Sentiment: Huawei announced plans to launch two Ascend 960 AI chips in 2027, signaling intensifying competition and potential geopolitical pressure on NVIDIA’s access to China. Higher memory costs are also expected to weigh on NVIDIA’s gross margins as demand expands. Huawei Sets Two Ascend 960 AI Chip Launches for 2027

Wall Street Analysts Forecast Growth

Several analysts recently commented on the stock. Royal Bank Of Canada raised their price objective on shares of NVIDIA from $300.00 to $330.00 and gave the company an “outperform” rating in a research note on Thursday, August 27th. KGI Securities lifted their price target on shares of NVIDIA from $335.00 to $345.00 in a research report on Thursday, August 27th. Wedbush upped their price target on NVIDIA from $330.00 to $345.00 and gave the stock an “outperform” rating in a report on Thursday, August 27th. Morgan Stanley set a $300.00 price objective on NVIDIA and gave the company an “overweight” rating in a research note on Thursday, August 27th. Finally, Wells Fargo & Company reaffirmed an “overweight” rating and set a $315.00 price objective on shares of NVIDIA in a report on Tuesday, August 11th. Three analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, NVIDIA presently has an average rating of “Buy” and a consensus price target of $324.34.

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 market capitalization of $5.29 trillion, a PE ratio of 27.74, a PEG ratio of 1.66 and a beta of 2.22. The stock’s 50 day moving average price is $214.10 and its two-hundred day moving average price is $203.86.

NVIDIA (NASDAQ:NVDA) last posted its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. The firm had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.NVIDIA’s revenue was up 105.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.05 EPS. On average, equities analysts expect that NVIDIA Corporation will post 9.12 earnings per share for the current year.

NVIDIA Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date is Thursday, September 10th. NVIDIA’s dividend payout ratio is 12.64%.

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

Insider Transactions at NVIDIA

In other news, Director Mark Stevens sold 622,239 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the transaction, the director owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Timothy Teter sold 30,000 shares of the company’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at $585,587,360.80. The trade was a 1.10% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 1,700,740 shares of company stock valued at $385,015,077. Insiders own 3.94% of the company’s stock.

Hedge Funds Weigh In On NVIDIA

Large investors have recently added to or reduced their stakes in the business. J. Stern & Co. LLP lifted its holdings 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 in the last quarter. Jupiter Topco LLC acquired a new stake in shares of NVIDIA during the second quarter valued at about $16,156,076,000. Van ECK Associates Corp increased its position in shares of NVIDIA by 34.7% during the second quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker’s stock worth $15,176,771,000 after acquiring an additional 19,522,304 shares during the last quarter. PFA Pension Forsikringsaktieselskab acquired a new position in shares of NVIDIA in the fourth quarter worth about $2,635,969,000. Finally, Amundi lifted its stake 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 acquiring an additional 12,575,177 shares in the last quarter. 65.27% of the stock is currently owned by hedge funds and other institutional investors.

NVIDIA Company Profile

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company’s offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.