NVIDIA (NASDAQ:NVDA) Trading 1.7% Higher – What’s Next?

Shares of NVIDIA Corporation (NASDAQ:NVDA) traded up 1.7% during mid-day trading on Monday . The company traded as high as $210.47 and last traded at $208.64. 137,338,967 shares were traded during trading, a decline of 20% from the average session volume of 172,334,797 shares. The stock had previously closed at $205.10.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA announced multiyear AI infrastructure partnerships with SK hynix, SK Telecom, and NAVER to build gigawatt-scale AI clouds/factories in Korea, expanding demand for NVIDIA’s GPUs, systems, and software. Article Title
• Positive Sentiment: CEO Jensen Huang said the recent semiconductor selloff created a buying opportunity, helping improve sentiment across AI and chip stocks and reinforcing the bullish case for NVIDIA’s AI growth runway. Article Title
• Positive Sentiment: Analysts and market commentary continued to highlight NVIDIA’s strong recent earnings and AI infrastructure demand, with several pieces arguing the stock still has room to run after its blockbuster quarter. Article Title
• Neutral Sentiment: Recent headlines also noted a fresh AI startup acquisition and additional product/partnership developments, but these appear secondary to the larger South Korea expansion theme. Article Title
• Negative Sentiment: Some articles warned that the AI trade may be vulnerable after Friday’s sharp chip selloff, and one Reuters report said NVIDIA’s AI PC push still depends on unproven broader demand beyond niche users. Article Title

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Bank of America restated a “buy” rating and set a $350.00 price target (up from $320.00) on shares of NVIDIA in a report on Thursday, May 21st. Citigroup began coverage on shares of NVIDIA in a report on Wednesday, April 15th. They set a “buy” rating for the company. President Capital upped their price objective on shares of NVIDIA from $280.00 to $295.00 and gave the company a “buy” rating in a research report on Thursday, May 21st. BNP Paribas Exane upped their price objective on shares of NVIDIA from $270.00 to $285.00 and gave the company an “outperform” rating in a research report on Thursday, May 21st. Finally, UBS Group upped their price objective on shares of NVIDIA from $275.00 to $280.00 and gave the company a “buy” rating in a research report on Thursday, May 21st. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Buy” and an average price target of $305.67.

NVIDIA Price Performance

The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. The stock has a market cap of $5.05 trillion, a price-to-earnings ratio of 31.95, a price-to-earnings-growth ratio of 0.46 and a beta of 2.22. The company’s 50-day moving average is $203.37 and its 200-day moving average is $190.58.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm had revenue of $81.62 billion during the quarter, compared to analyst estimates of $78.42 billion. During the same quarter in the prior year, the business posted $0.81 earnings per share. The company’s quarterly revenue was up 85.2% compared to the same quarter last year. Equities research analysts expect that NVIDIA Corporation will post 8.61 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Thursday, June 4th will be issued a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is 15.31%.

NVIDIA announced that its board has authorized a stock buyback program on Wednesday, May 20th that permits the company to buyback $80.00 billion in shares. This buyback authorization permits the computer hardware maker to reacquire up to 1.5% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its stock is undervalued.

Insider Activity at NVIDIA

In other news, Director John Dabiri sold 625 shares of the firm’s stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the completion of the sale, the director owned 14,163 shares of the company’s stock, valued at approximately $3,030,882. This trade represents a 4.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 20,000 shares of the firm’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 transaction of $3,497,800.00. Following the sale, the chief financial officer directly owned 83,060 shares of the company’s stock, valued at approximately $14,526,363.40. The trade was a 19.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 1,922,461 shares of company stock valued at $387,385,083. Insiders own 3.94% of the company’s stock.

Institutional Trading of NVIDIA

Several hedge funds have recently modified their holdings of the company. Diversified Enterprises LLC grew its holdings in shares of NVIDIA by 44.2% in the fourth quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker’s stock worth $23,798,000 after purchasing an additional 39,129 shares during the last quarter. PMG Family Office LLC bought a new position in shares of NVIDIA in the third quarter worth about $2,150,000. ASR Vermogensbeheer N.V. grew its holdings in shares of NVIDIA by 1.8% in the fourth quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker’s stock worth $591,086,000 after purchasing an additional 54,877 shares during the last quarter. Weaver Capital Management LLC grew its holdings in shares of NVIDIA by 5.5% in the fourth quarter. Weaver Capital Management LLC now owns 85,216 shares of the computer hardware maker’s stock worth $15,893,000 after purchasing an additional 4,439 shares during the last quarter. Finally, Circle Wealth Management LLC grew its holdings in shares of NVIDIA by 16.1% in the third quarter. Circle Wealth Management LLC now owns 107,787 shares of the computer hardware maker’s stock worth $20,111,000 after purchasing an additional 14,936 shares during the last quarter. Institutional investors and hedge funds own 65.27% of the company’s stock.

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.