NVIDIA Corporation (NASDAQ:NVDA – Get Free Report)’s stock price traded up 2.6% during trading on Tuesday . The stock traded as high as $200.63 and last traded at $200.09. 162,741,850 shares were traded during trading, a decline of 4% from the average daily volume of 170,245,438 shares. The stock had previously closed at $194.97.
NVIDIA News Roundup
Here are the key news stories impacting NVIDIA this week:
- Positive Sentiment: NVIDIA unveiled a new revenue-sharing model that lets AI startups trade compute access for a share of future profits, a move that could expand its customer base and make its ecosystem stickier. Nvidia offers start-up customers chance to swap compute power for revenue share
- Positive Sentiment: Analysts and commentators continue to highlight Nvidia as a top AI and semiconductor name, with several articles arguing the recent pullback is a buying opportunity and that the stock could recover meaningfully over the next 12 months. Price Prediction: Nvidia Could Hit $250 in 12 Months Despite AI Selloff
- Positive Sentiment: Multiple reports pointed to new AI/robotics opportunities tied to NVIDIA, including the Palantir sovereign AI partnership, the Agility Robotics launch partnership, and Valar Atomics’ reactor-powered Nvidia chip demo, reinforcing Nvidia’s central role in AI infrastructure. Valar nuclear startup partners with Nvidia on data center aiming to conserve water
- Neutral Sentiment: Nvidia also named Nicholas Parker to lead field operations, an internal leadership move that appears operational rather than a major financial catalyst. Nvidia names Nicholas Parker to lead field operations
- Negative Sentiment: Several pieces said NVDA remains under pressure from semiconductor profit-taking, a broader AI selloff, and concerns that valuations have gotten ahead of fundamentals, with technical traders warning of further downside if support breaks near the $200 area. Nvidia stock continues decline: what’s hurting the AI darling?
- Negative Sentiment: Hedge-fund sentiment also looked like a headwind, with Michael Burry disclosed as betting against Nvidia and other chip stocks, adding to the market’s caution around AI-chip names. Big Short investor Michael Burry reveals fresh bets against Tesla, Nvidia, and Caterpillar
Analyst Upgrades and Downgrades
Several equities analysts recently weighed in on NVDA shares. Mizuho set a $300.00 price objective on shares of NVIDIA in a report on Thursday, May 21st. Weiss Ratings reiterated a “buy (b)” rating on shares of NVIDIA in a research report on Friday, April 10th. Cantor Fitzgerald reissued an “overweight” rating and issued a $350.00 price target on shares of NVIDIA in a research note on Thursday, May 21st. JPMorgan Chase & Co. raised their price target on NVIDIA from $265.00 to $280.00 and gave the stock an “overweight” rating in a research report on Thursday, May 21st. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and set a $285.00 price objective (up from $250.00) on shares of NVIDIA in a research note on Wednesday, May 20th. 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 stock. Based on data from MarketBeat, NVIDIA has a consensus rating of “Buy” and a consensus price target of $303.84.
NVIDIA Stock Down 1.4%
The firm has a fifty day simple moving average of $210.48 and a 200-day simple moving average of $193.36. The company has a market capitalization of $4.72 trillion, a P/E ratio of 29.79, a P/E/G ratio of 0.44 and a beta of 2.21. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04.
NVIDIA (NASDAQ:NVDA – Get Free Report) last released its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping analysts’ consensus estimates of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company had revenue of $81.61 billion for the quarter, compared to analyst estimates of $78.42 billion. During the same quarter last year, the firm posted $0.81 earnings per share. NVIDIA’s revenue was up 85.2% compared to the same quarter last year. On average, equities research analysts expect that NVIDIA Corporation will post 8.69 EPS for the current fiscal year.
NVIDIA Increases Dividend
The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were paid a $0.25 dividend. The ex-dividend date of this dividend was Thursday, June 4th. 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 yield of 0.5%. NVIDIA’s payout ratio is presently 15.31%.
NVIDIA declared that its board has authorized a stock buyback plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to buy up to 1.5% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s leadership believes its shares are undervalued.
Insider Transactions at NVIDIA
In related news, Director John Dabiri sold 625 shares of the firm’s stock in a transaction 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 sale, the director directly owned 14,163 shares in the company, valued at $3,030,882. This trade represents a 4.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of the business’s stock in a transaction on 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 completion of the sale, the director directly owned 116,135 shares in the company, valued at $25,053,803.55. This represents a 11.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 1,901,125 shares of company stock valued at $410,583,015 over the last quarter. Corporate insiders own 3.94% of the company’s stock.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently modified their holdings of NVDA. Spectrum Financial Alliance Ltd LLC boosted its holdings in NVIDIA by 3.8% during the first quarter. Spectrum Financial Alliance Ltd LLC now owns 1,395 shares of the computer hardware maker’s stock worth $243,000 after purchasing an additional 51 shares during the last quarter. Presidio Capital Management LLC increased its stake in NVIDIA by 0.4% in the 4th quarter. Presidio Capital Management LLC now owns 15,137 shares of the computer hardware maker’s stock valued at $2,823,000 after buying an additional 53 shares during the last quarter. LMG Wealth Partners LLC lifted its position in NVIDIA by 0.7% during the 4th quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker’s stock worth $1,427,000 after buying an additional 53 shares in the last quarter. Vision Financial Markets LLC lifted its position in NVIDIA by 1.2% during the 3rd quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker’s stock worth $866,000 after buying an additional 53 shares in the last quarter. Finally, Burt Wealth Advisors boosted its stake in shares of NVIDIA by 3.5% during the 3rd quarter. Burt Wealth Advisors now owns 1,617 shares of the computer hardware maker’s stock worth $302,000 after buying an additional 54 shares during the last quarter. 65.27% of the stock is owned by institutional investors and hedge funds.
NVIDIA Company Profile
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.
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