NVIDIA (NASDAQ:NVDA) Stock Price Up 8.7% Following Better-Than-Expected Earnings

NVIDIA Corporation (NASDAQ:NVDA)’s share price traded up 8.7% during trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $230.47 and last traded at $227.98. 294,621,800 shares traded hands during mid-day trading, an increase of 85% from the average session volume of 159,458,188 shares. The stock had previously closed at $209.66.

The computer hardware maker reported $2.22 EPS for the quarter, topping the consensus estimate of $2.09 by $0.13. The firm had revenue of $96.22 billion for the quarter, compared to analysts’ expectations of $92.27 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The firm’s quarterly revenue was up 105.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.05 earnings per share.

NVIDIA Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be issued a $0.25 dividend. The ex-dividend date is Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.4%. NVIDIA’s dividend payout ratio is 15.31%.

NVIDIA announced that its Board of Directors has authorized a stock buyback plan on Wednesday, May 20th that permits the company to repurchase $80.00 billion in shares. This repurchase authorization permits the computer hardware maker to reacquire up to 1.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

NVIDIA News Roundup

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.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the company. HSBC reaffirmed a “buy” rating and set a $325.00 target price (up from $295.00) on shares of NVIDIA in a report on Tuesday, May 19th. Itau BBA Securities reduced their price objective on shares of NVIDIA from $256.00 to $218.00 in a research report on Wednesday, June 24th. William Blair restated an “outperform” rating on shares of NVIDIA in a research report on Tuesday, June 2nd. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $350.00 price objective on shares of NVIDIA in a research note on Monday. Finally, Benchmark reiterated a “buy” rating and issued a $335.00 target price on shares of NVIDIA in a report on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $322.61.

Insider Transactions at NVIDIA

In other NVIDIA news, Director Mark A. Stevens sold 885,000 shares of the business’s stock in a transaction dated 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 sale, the director owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Stephen C. Neal sold 15,500 shares of the company’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the sale, the director directly owned 116,135 shares of the company’s stock, valued at $25,053,803.55. This represents a 11.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,900,500 shares of company stock worth $410,449,265 in the last three months. 3.94% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NVIDIA

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Lifetime Wealth Management P.C. acquired a new position in NVIDIA in the 4th quarter valued at approximately $26,000. Longview Financial Advisors Inc. purchased a new position in shares of NVIDIA during the 1st quarter valued at $27,000. Montgomery Financial Services LLC acquired a new position in shares of NVIDIA in the second quarter worth $28,000. Longfellow Investment Management Co. LLC boosted its position in NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after purchasing an additional 67 shares during the last quarter. Finally, Langley Wealth Management LLC purchased a new position in NVIDIA in the second quarter valued at about $34,000. 65.27% of the stock is currently owned by hedge funds and other institutional investors.

NVIDIA Price Performance

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

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.