NVIDIA (NASDAQ:NVDA) Stock Rating Cut to “Buy” at Wall Street Zen

Wall Street Zen lowered shares of NVIDIA (NASDAQ:NVDA) from a strong-buy rating to a buy rating in a research note issued to investors on Saturday,Wall Street Zen reports.

Several other research analysts have also weighed in on NVDA. Raymond James Financial set a $515.00 target price on NVIDIA and gave the stock a “strong-buy” rating in a research report on Thursday, August 27th. Needham & Company LLC reissued a “buy” rating and set a $300.00 price target on shares of NVIDIA in a research report on Friday, September 4th. DZ Bank restated a “buy” rating on shares of NVIDIA in a research note on Wednesday, August 26th. Wells Fargo & Company restated an “overweight” rating and issued a $315.00 price objective on shares of NVIDIA in a report on Tuesday, August 11th. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of NVIDIA in a research note on Wednesday, July 8th. Four analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, NVIDIA has a consensus rating of “Buy” and an average price target of $324.14.

NVIDIA Stock Up 0.2%

Shares of NASDAQ:NVDA opened at $225.07 on Friday. 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 cap of $5.42 trillion, a price-to-earnings ratio of 28.45, a PEG ratio of 1.74 and a beta of 2.22. The stock’s 50-day moving average price is $216.52 and its two-hundred day moving average price is $205.86. NVIDIA has a 12-month low of $164.27 and a 12-month high of $236.54.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings data 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. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. During the same quarter in the prior year, the company posted $1.05 EPS. The company’s quarterly revenue was up 105.9% compared to the same quarter last year. On average, research analysts forecast that NVIDIA will post 9.25 EPS for the current year.

NVIDIA Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be given a $0.25 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.4%. NVIDIA’s dividend payout ratio is presently 12.64%.

Insider Activity

In other NVIDIA news, EVP Timothy S. Teter sold 30,460 shares of the company’s stock in a transaction that occurred 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 transaction, the executive vice president owned 2,687,660 shares in the company, valued at $598,810,648. This represents a 1.12% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 34,918 shares of the stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the completion of the sale, the chief financial officer directly owned 765,103 shares of the company’s stock, valued at $167,595,812.15. This trade represents a 4.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 1,766,118 shares of company stock worth $399,450,353. 3.94% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Envestnet Portfolio Solutions Inc. grew its holdings in NVIDIA by 6.7% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 997,308 shares of the computer hardware maker’s stock valued at $199,533,000 after purchasing an additional 62,828 shares in the last quarter. Envestnet Asset Management Inc. increased its stake in NVIDIA by 3.7% during the 2nd quarter. Envestnet Asset Management Inc. now owns 23,901,229 shares of the computer hardware maker’s stock worth $4,782,365,000 after buying an additional 856,390 shares during the period. State Street Corp lifted its holdings in NVIDIA by 1.6% in 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 buying an additional 15,897,836 shares in the last quarter. Wellington Altus USA Inc. lifted its holdings in NVIDIA by 8.0% in the 2nd quarter. Wellington Altus USA Inc. now owns 14,583 shares of the computer hardware maker’s stock worth $2,918,000 after buying an additional 1,081 shares in the last quarter. Finally, Anchor Investment Management LLC boosted its position in NVIDIA by 4.7% in the 2nd quarter. Anchor Investment Management LLC now owns 90,989 shares of the computer hardware maker’s stock valued at $18,206,000 after buying an additional 4,049 shares during the last quarter. 65.27% of the stock is currently owned by hedge funds and other institutional investors.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Elon Musk said xAI’s Colossus 2 data center could more than double its NVIDIA chip count by year-end. The facility reportedly already uses 110,000 GB200 and 440,000 GB300 GPUs, reinforcing expectations for large hyperscaler and AI-lab orders. xAI Colossus 2 chip deployment article
• Positive Sentiment: Industry commentary indicates NVIDIA GPU demand is so strong that even poorly built cloud infrastructure can attract customers at healthy margins. This supports the view that AI compute demand still exceeds available supply. NVIDIA GPU demand article
• Positive Sentiment: RMX Industries placed an order for NVIDIA H200 GPU systems through Technologent, providing another example of demand for NVIDIA’s data-center products. Super Micro’s shipment of Vera Rubin NVL72 racks also signals that next-generation systems are reaching customers. RMX H200 purchase order article
• Positive Sentiment: Analysts continue to favor NVIDIA over competing AI-chip names such as Micron and Marvell, citing broader AI exposure, stronger margins and higher returns on equity. Bullish coverage also points to a potential Vera Rubin volume ramp and substantial cloud infrastructure backlogs. Micron versus NVIDIA analysis
• Neutral Sentiment: Extended U.S.-China trade discussions may eventually improve NVIDIA’s China opportunity, but export restrictions remain unresolved. The stock is also testing important technical levels after a strong recent advance. NVIDIA technical and China outlook article
• Negative Sentiment: EVP Timothy Teter sold approximately $6.8 million of NVIDIA shares under a pre-arranged Rule 10b5-1 plan. The sale was only about 1.1% of his holdings and does not indicate a fundamental change, but it may weigh on sentiment alongside broader reports of insider profit-taking. NVIDIA insider sale article
• Negative Sentiment: Higher memory costs are expected to pressure NVIDIA’s gross margins, while rising Treasury yields could compress the valuation of high-growth technology stocks. Investors are therefore balancing exceptional AI demand against increasing supply-chain costs and macroeconomic risk.

About NVIDIA

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.