NVIDIA (NASDAQ:NVDA) Shares Up 3.7% – Time to Buy?

NVIDIA Corporation (NASDAQ:NVDA) traded up 3.7% during mid-day trading on Wednesday . The stock traded as high as $205.16 and last traded at $204.12. 145,981,826 shares changed hands during mid-day trading, a decline of 14% from the average daily volume of 168,842,922 shares. The stock had previously closed at $196.93.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Bank of America reiterated a bullish view on NVIDIA, saying the company remains a top AI stock and could keep a dominant share of AI infrastructure spending; other commentary also said current valuation looks more attractive after the recent pullback. Bank of America backs NVIDIA as AI leadership supports growth
• Positive Sentiment: Reuters reported China may allow a limited number of top AI firms to buy NVIDIA H200 chips, which would support demand even if supply is tightly capped. China plans limited Nvidia H200 chip access
• Positive Sentiment: Perplexity confirmed it plans to use NVIDIA’s new CPUs, and other articles highlighted additional partnerships and product adoption, reinforcing that NVIDIA is expanding beyond GPUs into broader AI infrastructure. Perplexity plans to use Nvidia’s new CPU
• Neutral Sentiment: Several pieces argued NVIDIA now screens as a “value” name after its valuation fell to multi-year lows relative to revenue growth, suggesting investors may be reassessing downside risk versus long-term AI upside.
• Neutral Sentiment: Market-wide semiconductor weakness, liquidity-driven selling, and a U.S.-Iran geopolitical flare-up weighed on chip stocks overall, which has been a drag on NVIDIA even though the core AI demand story has not changed.
• Negative Sentiment: Reports that DeepSeek and other AI customers are developing in-house chips renewed concerns that large buyers could reduce dependence on NVIDIA over time. NVIDIA stock faces pressure from DeepSeek chip concerns
• Negative Sentiment: There are also fresh bearish takes about competition, valuation, and a possible delay to NVIDIA’s next-gen Kyber AI system, all of which could limit upside if investors decide the AI buildout is maturing faster than expected.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. Wells Fargo & Company reaffirmed an “overweight” rating and issued a $315.00 price target (up from $265.00) on shares of NVIDIA in a research note on Tuesday, May 12th. HSBC reissued 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. Evercore restated an “outperform” rating and issued a $413.00 target price (up from $352.00) on shares of NVIDIA in a research report on Thursday, May 21st. Morgan Stanley set a $288.00 price target on NVIDIA and gave the stock an “overweight” rating in a research note on Thursday, May 21st. Finally, Zacks Research downgraded NVIDIA from a “strong-buy” rating to a “hold” rating in a research note on Thursday, May 21st. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Buy” and an average target price of $303.84.

NVIDIA Stock Performance

The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The stock has a market cap of $4.94 trillion, a price-to-earnings ratio of 31.26, a PEG ratio of 0.43 and a beta of 2.21. The firm has a fifty day moving average of $209.91 and a 200 day moving average of $193.94.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, topping analysts’ consensus estimates of $1.76 by $0.11. The company had revenue of $81.61 billion for the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The firm’s revenue for the quarter was up 85.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.81 earnings per share. As a group, sell-side analysts forecast that NVIDIA Corporation will post 8.69 EPS for the current year.

NVIDIA Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were issued a $0.25 dividend. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend was Thursday, June 4th. NVIDIA’s payout ratio is currently 15.31%.

NVIDIA announced that its board has initiated 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 purchase up to 1.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In other NVIDIA news, Director Stephen C. Neal sold 15,500 shares of NVIDIA 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 transaction, the director directly owned 116,135 shares of the company’s stock, valued at $25,053,803.55. The trade was a 11.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director John Dabiri sold 625 shares of the business’s stock in a transaction dated 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 transaction, the director owned 14,163 shares in the company, valued at $3,030,882. The trade was a 4.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,901,125 shares of company stock valued at $410,583,015 over the last ninety days. Company insiders own 3.94% of the company’s stock.

Institutional Investors Weigh In On NVIDIA

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Norges Bank purchased a new stake in NVIDIA during the 4th quarter worth about $62,244,133,000. J. Stern & Co. LLP boosted its stake in shares of NVIDIA by 13,709.1% in the 4th 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 buying an additional 124,849,603 shares during the period. Cardano Risk Management B.V. grew its position in shares of NVIDIA by 896.4% during the fourth quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker’s stock worth $14,570,119,000 after buying an additional 70,283,539 shares in the last quarter. Capital Research Global Investors grew its position in shares of NVIDIA by 16.1% during the third quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker’s stock worth $30,855,564,000 after buying an additional 22,896,705 shares in the last quarter. Finally, Laurel Wealth Advisors LLC increased its stake in shares of NVIDIA by 15,496.1% during the second quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker’s stock worth $3,454,534,000 after buying an additional 21,725,326 shares during the period. Hedge funds and other institutional investors 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.