NVIDIA (NASDAQ:NVDA) Board of Directors Approves Share Repurchase Program

NVIDIA (NASDAQ:NVDA) announced that its Board of Directors has initiated a share repurchase program on Monday, September 28th, RTT News reports. The company plans to buyback $150.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to repurchase up to 2.8% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of analysts have commented on the stock. Piper Sandler initiated coverage on shares of NVIDIA in a research note on Wednesday, September 9th. They set an “overweight” rating and a $300.00 price objective for the company. DA Davidson reissued a “buy” rating and issued a $300.00 target price on shares of NVIDIA in a research report on Thursday, August 27th. KGI Securities raised their price objective on NVIDIA from $335.00 to $345.00 in a research note on Thursday, August 27th. BMO Capital Markets set a $340.00 price target on shares of NVIDIA and gave the company an “outperform” rating in a report on Thursday, August 20th. Finally, Melius Research set a $420.00 price objective on shares of NVIDIA in a report on Thursday, August 27th. Four investment analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, NVIDIA presently has a consensus rating of “Buy” and an average price target of $324.14.

NVIDIA Stock Up 0.5%

Shares of NVDA opened at $228.38 on Thursday. The business’s 50 day simple moving average is $217.76 and its 200-day simple moving average is $206.94. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The company has a market capitalization of $5.50 trillion, a P/E ratio of 28.87, a PEG ratio of 1.76 and a beta of 2.22. NVIDIA has a one year low of $164.27 and a one year high of $236.54.

NVIDIA (NASDAQ:NVDA) last announced its 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. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The company had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. During the same period last year, the company posted $1.05 earnings per share. The firm’s quarterly revenue was up 105.9% compared to the same quarter last year. As a group, sell-side analysts predict that NVIDIA will post 9.25 EPS for the current fiscal year.

NVIDIA Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be paid a $0.25 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. NVIDIA’s dividend payout ratio (DPR) is presently 12.64%.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA authorized an additional $150 billion for share repurchases, raising total remaining authorization to approximately $235 billion through fiscal 2028. The move signals management’s confidence in the company’s cash generation and suggests it views the stock as attractively valued. Stock Market Today, Sept. 30: Nvidia Authorizes $150B Buyback, Lifting Total to $235B
• Positive Sentiment: The latest bullish case centers on sustained AI spending. NVIDIA’s data-center revenue reportedly surged 117% year over year to $89 billion, while management continues to forecast substantial growth despite the company’s enormous scale. Analysts cited valuation, hyperscaler capital expenditures and the company’s full-stack AI platform as potential upside drivers. Nvidia’s Demand Outlook Still Supports The Bull Case
• Positive Sentiment: Political and regulatory developments were also favorable. President Donald Trump reportedly supported industry self-regulation at a White House AI meeting attended by CEO Jensen Huang, reducing near-term concerns that stricter rules could slow AI deployment. NVIDIA’s new AI safety platform could further support demand for inference, monitoring and networking infrastructure. Nvidia Was the Big Winner of Trump’s AI Lunch, Here’s Why
• Positive Sentiment: NVIDIA’s reported agreement to acquire Hugging Face for nearly $13 billion would expand its reach into open-source models, developer tools, datasets and AI distribution. The company is also investing in AI infrastructure partners, reinforcing its broader ecosystem strategy beyond GPUs. Nvidia just spent nearly $13 billion on something other than GPUs
• Neutral Sentiment: Softer-than-expected inflation helped support growth-oriented technology shares by reducing immediate expectations for additional Federal Reserve rate increases. However, higher interest rates remain a key valuation risk for AI-linked stocks. Why is Nvidia stock rising on Wednesday?
• Negative Sentiment: Risks remain around an AI spending slowdown, particularly if hyperscalers reduce capital expenditures. DeepSeek’s work with Huawei on software for alternative AI chips could also challenge NVIDIA’s software moat, while rising memory and networking costs may pressure gross margins. Investor Michael Burry’s reported bearish options position adds to skepticism, although it has not changed the company’s fundamental outlook. If AI Capex Cracks, Nvidia Could Feel It Before Meta Does

Insiders Place Their Bets

In other NVIDIA news, CFO Colette Kress sold 34,918 shares of the firm’s stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total value of $7,648,787.90. Following the completion of the transaction, the chief financial officer directly owned 765,103 shares in the company, valued at $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the firm’s stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the completion of the sale, the director owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Company insiders own 3.94% of the company’s stock.

NVIDIA Company Profile

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.