NVIDIA (NASDAQ:NVDA) Stock Price Up 2.1% – Should You Buy?

Shares of NVIDIA Corporation (NASDAQ:NVDA) shot up 2.1% during mid-day trading on Monday. The company traded as high as $240.10 and last traded at $238.90. 124,090,358 shares traded hands during trading, a decline of 19% from the average daily volume of 153,683,313 shares. The stock had previously closed at $233.95.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Potential $40 billion SpaceX order: SpaceX is reportedly seeking financing to purchase a large volume of NVIDIA AI chips, strengthening the relationship between Elon Musk’s companies and NVIDIA while offering another major customer beyond hyperscale cloud providers. SpaceX and Nvidia Strengthen Ties as Musk Spends Big on AI Chips
• Positive Sentiment: Broader startup demand: NVIDIA-backed AI cloud company Lambda is reportedly targeting as much as $4 billion in new funding ahead of a planned IPO. The development highlights expanding demand from specialized AI infrastructure providers and could increase NVIDIA’s customer base. Nvidia-backed Lambda targets $4 billion raise
• Positive Sentiment: Financing could sustain GPU purchases: NVIDIA is working with banks on up to $500 billion of customer financing backed partly by the residual value of GPU servers. Supporters argue that alternative financing may ease capital constraints and extend the AI infrastructure spending cycle. The $500 Billion Question Causing Waves Across Every AI Stock
• Positive Sentiment: Bullish analyst outlook: Dan Ives said investors may be underestimating NVIDIA’s growth over the next six to eight quarters, while multiple reports point to strong AI spending, rising earnings estimates and continued leadership in accelerated computing.
• Neutral Sentiment: $6 trillion milestone in focus: NVIDIA’s roughly $5.8 trillion valuation is approaching the first $6 trillion market-cap threshold. The milestone is attracting attention and supporting momentum, but historical examples suggest reaching a record valuation does not guarantee continued outperformance. Nvidia is about 4% from becoming the first $6 trillion company
• Negative Sentiment: Bearish hedge-fund positioning: Michael Burry has reportedly shifted to longer-dated put options on NVIDIA, arguing that research has accelerated his expected timeline for an AI downturn. This reinforces concerns that AI spending and chip valuations may be ahead of fundamentals.
• Negative Sentiment: Valuation and execution risks: Analysts continue to debate whether GPU resale values and free cash flow justify NVIDIA’s market capitalization. Broadcom’s custom AI-chip push and financing support for Anthropic also represent increasing competitive pressure. Challenging Nvidia’s Dominance

Wall Street Analyst Weigh In

NVDA has been the topic of several research analyst reports. Phillip Securities raised their price target on shares of NVIDIA from $285.00 to $300.00 and gave the stock a “buy” rating in a research report on Monday, August 31st. HSBC upped their price objective on shares of NVIDIA from $360.00 to $365.00 in a research report on Thursday, August 27th. BMO Capital Markets set a $340.00 target price on shares of NVIDIA and gave the company an “outperform” rating in a research note on Thursday, August 20th. Truist Financial boosted their price target on NVIDIA from $307.00 to $346.00 and gave the company a “buy” rating in a research note on Thursday, August 27th. Finally, KGI Securities upped their price target on NVIDIA from $335.00 to $345.00 in a report 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 issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus price target of $321.89.

NVIDIA Price Performance

The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The company’s 50-day moving average is $220.43 and its 200-day moving average is $208.47. The stock has a market cap of $5.77 trillion, a price-to-earnings ratio of 30.25, a price-to-earnings-growth ratio of 1.85 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $92.27 billion. During the same period in the prior year, the company posted $1.05 EPS. The company’s revenue was up 105.9% compared to the same quarter last year. Equities research analysts expect that NVIDIA Corporation will post 9.25 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 0.4%. The ex-dividend date was Thursday, September 10th. NVIDIA’s dividend payout ratio is currently 12.64%.

NVIDIA declared that its Board of Directors has initiated a share buyback plan on Monday, September 28th that authorizes the company to buyback $150.00 billion in shares. This buyback authorization authorizes the computer hardware maker to repurchase up to 2.8% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s board believes its shares are undervalued.

Insider Transactions at NVIDIA

In other news, CFO Colette Kress sold 34,918 shares of NVIDIA stock in a transaction that occurred 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 transaction, the chief financial officer owned 765,103 shares in the company, valued at approximately $167,595,812.15. The trade was a 4.36% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible 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 on Friday, September 4th. The shares were sold at an average price of $231.62, for a total value of $144,122,997.18. Following the sale, the director directly owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 1,766,118 shares of company stock valued at $399,450,353. 3.94% of the stock is owned by insiders.

Institutional Trading of NVIDIA

Large investors have recently made changes to their positions in the business. State Street Corp grew its stake in shares of NVIDIA by 1.6% during the second 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 purchasing an additional 15,897,836 shares during the last quarter. Bank of America Corp DE raised its position in NVIDIA by 2.2% in 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 purchasing an additional 4,165,875 shares during the last quarter. Invesco Ltd. raised its position in NVIDIA by 0.3% in the 4th quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker’s stock worth $26,714,167,000 after purchasing an additional 446,178 shares during the last quarter. J. Stern & Co. LLP lifted its holdings in NVIDIA by 13,709.1% during the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock worth $23,454,297,000 after buying an additional 124,849,603 shares in the last quarter. Finally, Amundi lifted its holdings in NVIDIA by 10.4% during the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after buying an additional 12,575,177 shares in the last quarter. Institutional investors own 65.27% of the company’s stock.

About NVIDIA

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.