NVIDIA (NASDAQ:NVDA) Upgraded by Zacks Research to “Strong-Buy” Rating

Zacks Research upgraded shares of NVIDIA (NASDAQ:NVDA) from a hold rating to a strong-buy rating in a report issued on Monday,Zacks reports.

Other equities research analysts also recently issued reports about the company. Needham & Company LLC reaffirmed a “buy” rating and issued a $300.00 price target on shares of NVIDIA in a research report on Friday, September 4th. BMO Capital Markets set a $340.00 price objective on shares of NVIDIA and gave the stock an “outperform” rating in a report on Thursday, August 20th. President Capital raised their price objective on NVIDIA from $295.00 to $330.00 in a research report on Thursday, August 27th. Sanford C. Bernstein reissued an “outperform” rating and issued a $400.00 price target (up from $315.00) on shares of NVIDIA in a report on Thursday, August 27th. Finally, Melius Research set a $420.00 price target on shares of NVIDIA in a research note on Thursday, August 27th. Four research analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Buy” and a consensus price target of $324.34.

NVIDIA Stock Up 0.7%

Shares of NVIDIA stock opened at $228.87 on Monday. The firm has a market cap of $5.52 trillion, a price-to-earnings ratio of 28.93, a P/E/G ratio of 1.76 and a beta of 2.22. The stock has a 50-day simple moving average of $215.47 and a 200-day simple moving average of $205.09. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. NVIDIA has a 52-week low of $164.27 and a 52-week high of $236.54.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. The business had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. NVIDIA’s revenue for the quarter was up 105.9% on a year-over-year basis. During the same quarter last year, the firm earned $1.05 EPS. On average, equities research analysts expect that NVIDIA will post 9.25 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

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

Insider Activity

In related news, CFO Colette Kress sold 34,918 shares of the company’s stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total value of $7,648,787.90. Following the completion of the sale, the chief financial officer owned 765,103 shares in the company, valued at $167,595,812.15. This represents a 4.36% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy S. Teter sold 30,000 shares of NVIDIA stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $217.88, for a total value of $6,536,400.00. Following the transaction, the executive vice president owned 2,687,660 shares in the company, valued at $585,587,360.80. This trade represents a 1.10% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,735,658 shares of company stock valued at $392,663,865 in the last 90 days. 3.94% of the stock is owned by company insiders.

Hedge Funds Weigh In On NVIDIA

A number of large investors have recently bought and sold shares of NVDA. State Street Corp boosted its holdings in shares of 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 valued at $202,047,568,000 after buying an additional 15,897,836 shares during the last quarter. Bank of America Corp DE boosted its stake in shares of NVIDIA by 2.2% during the 2nd quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker’s stock worth $39,090,956,000 after acquiring an additional 4,165,875 shares during the period. Invesco Ltd. lifted its holdings in NVIDIA by 0.3% during the 4th quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker’s stock valued at $26,714,167,000 after purchasing an additional 446,178 shares during the last quarter. J. Stern & Co. LLP raised its position in shares of NVIDIA by 13,709.1% in the fourth quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock valued at $23,454,297,000 after purchasing an additional 124,849,603 shares during the period. Finally, Amundi grew its stake in NVIDIA by 10.4% in the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock valued at $23,329,141,000 after buying an additional 12,575,177 shares during the last quarter. Institutional investors and hedge funds own 65.27% of the company’s stock.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: CEO Jensen Huang pushed back against AI “doomsday” scenarios and argued that existing laws are sufficient, helping ease concerns that overly restrictive regulation could slow AI deployment. Nvidia’s Jensen Huang rejects AI doomsday fears
• Positive Sentiment: Analysts and financial commentators continue to highlight NVIDIA’s earnings momentum, broad AI hardware and networking portfolio, and projected long-term demand. Zacks restored the stock to a Rank #1 “Strong Buy,” while another report cited potential upside from positive earnings revisions. Bull of the Day: NVIDIA Corp.
• Positive Sentiment: Potentially improved access to China is a major catalyst. NVIDIA’s latest forecast reportedly assumes no data-center compute sales to China, leaving upside if the upcoming Trump-Xi discussions lead to licenses or expanded chip shipments. Nvidia’s forecast assumes no data center chip sales to China
• Positive Sentiment: New ecosystem initiatives reinforce NVIDIA’s expansion beyond GPUs. QAD | Redzone plans to integrate NVIDIA technology into manufacturing intelligence, while NVIDIA’s reported roughly $12.9 billion Hugging Face acquisition would add a major developer, model and dataset ecosystem. QAD Redzone Accelerates Manufacturing Intelligence with NVIDIA
• Neutral Sentiment: Investors are increasingly focused on AI infrastructure bottlenecks such as high-bandwidth memory, optical networking, power and cooling. Rising component costs could pressure NVIDIA’s margins, but may also validate demand and strengthen the position of critical suppliers such as Micron, Coherent and Lumentum. NVIDIA just named AI’s next bottleneck
• Negative Sentiment: AMD’s rapid advance is intensifying competitive pressure. Large OpenAI and Oracle commitments, rising data-center revenue and potential pricing power suggest hyperscalers are diversifying away from a single accelerator supplier. AMD chips away at NVIDIA’s AI throne
• Negative Sentiment: Other reports warn that higher interest rates, concentrated AI revenue, expensive infrastructure financing and persistent bubble concerns could weigh on NVIDIA’s richly valued shares. NVIDIA also missed the strongest portion of a Meta-driven chip rally, underscoring lingering growth expectations.

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.