Stock Buyback Plan Announced by NVIDIA (NASDAQ:NVDA) Board

NVIDIA (NASDAQ:NVDA) declared that its Board of Directors has initiated a share repurchase program on Wednesday, May 20th, RTT News reports. The company plans to buyback $80.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

NVIDIA Price Performance

Shares of NVIDIA stock traded up $2.86 during trading on Wednesday, reaching $223.47. The company’s stock had a trading volume of 177,901,758 shares, compared to its average volume of 156,568,368. The company has a quick ratio of 3.24, a current ratio of 3.91 and a debt-to-equity ratio of 0.05. NVIDIA has a 12-month low of $129.16 and a 12-month high of $236.54. The company has a market capitalization of $5.41 trillion, a P/E ratio of 45.61, a price-to-earnings-growth ratio of 0.69 and a beta of 2.25. The business has a 50 day moving average price of $194.82 and a 200-day moving average price of $188.75.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. NVIDIA had a return on equity of 97.37% and a net margin of 55.60%.The firm had revenue of $81.62 billion for the quarter, compared to the consensus estimate of $78.42 billion. During the same period in the previous year, the business earned $0.81 earnings per share. The company’s revenue for the quarter was up 85.2% compared to the same quarter last year. As a group, sell-side analysts anticipate that NVIDIA will post 7.85 EPS for the current year.

NVIDIA Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 1st. Stockholders of record on Wednesday, March 11th were issued a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.0%. The ex-dividend date was Wednesday, March 11th. NVIDIA’s dividend payout ratio (DPR) is currently 0.82%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on NVDA. Fundamental Research set a $218.00 target price on shares of NVIDIA in a research report on Thursday, February 26th. TD Cowen reiterated a “buy” rating and set a $275.00 target price (up from $235.00) on shares of NVIDIA in a research note on Friday, May 15th. Robert W. Baird upped their price objective on NVIDIA from $275.00 to $300.00 and gave the company an “outperform” rating in a research note on Thursday, February 26th. CICC Research upped their price objective on NVIDIA from $228.00 to $240.60 and gave the company an “outperform” rating in a research note on Friday, February 27th. Finally, Bank of America upped their price objective on NVIDIA from $300.00 to $320.00 and gave the company a “buy” rating in a research note on Wednesday, May 13th. Four research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Buy” and an average target price of $279.06.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA delivered another huge beat-and-raise quarter, with record revenue, strong EPS growth, and data-center results that underline its dominance in AI infrastructure.
• Positive Sentiment: The company authorized an additional $80 billion share buyback and raised its quarterly dividend from $0.01 to $0.25 per share, signaling confidence in future cash generation and returning more capital to shareholders.
• Positive Sentiment: Analysts and commentators highlighted broad AI demand, strong Blackwell ramp-up, and continued operating leverage, which support the bullish case for NVIDIA stock.
• Neutral Sentiment: NVIDIA said its outlook does not assume any Data Center compute revenue from China, leaving a meaningful source of potential upside or downside depending on trade and licensing developments.
• Neutral Sentiment: Management is also transitioning to a new reporting framework focused on Data Center and Edge Computing, which should better reflect growth drivers but may make comparisons harder in the near term.
• Negative Sentiment: Despite the strong results, articles noted rising competition from custom chips at companies like Amazon and Alphabet, plus ongoing uncertainty around China shipments, which could temper enthusiasm if growth slows.

Insiders Place Their Bets

In related news, Director Mark A. Stevens sold 221,682 shares of the company’s stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $173.68, for a total value of $38,501,729.76. Following the sale, the director owned 7,399,771 shares in the company, valued at $1,285,192,227.28. This represents a 2.91% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Colette Kress sold 42,650 shares of the company’s stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $174.89, for a total value of $7,459,058.50. Following the completion of the sale, the chief financial officer owned 881,387 shares in the company, valued at approximately $154,145,772.43. This represents a 4.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 906,336 shares of company stock worth $162,802,518. Insiders own 4.17% of the company’s stock.

NVIDIA Company Profile

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.