NVIDIA (NASDAQ:NVDA) Stock Jumps 2.5% – Still a Buy?

NVIDIA Corporation (NASDAQ:NVDA) traded up 2.5% during mid-day trading on Wednesday. The stock traded as high as $222.19 and last traded at $221.97. 85,809,986 shares changed hands during trading, a decline of 43% from the average session volume of 150,299,563 shares. The stock had previously closed at $216.47.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Faster AI data-center deployment: NVIDIA introduced its DSX POD reference design, which factory-integrates Vera Rubin computing, networking, power and liquid cooling. The modular systems could reduce deployment time from roughly six months to as little as 14 days, potentially allowing customers to begin generating AI revenue sooner. Nvidia announces plug and play Vera Rubin racks
• Positive Sentiment: Efficiency and capacity gains: NVIDIA said its DSX platform can reduce cooling-water use and generate the same AI output with up to 30% less power. That addresses major constraints—electricity, cooling and construction timelines—that have slowed AI-capacity expansion. European ecosystem builds AI factories with NVIDIA DSX
• Positive Sentiment: Demand remains robust: Recent results showed approximately $96.2 billion in quarterly revenue, up more than 100% year over year, with data-center revenue near $89 billion and next-quarter sales guidance of about $108 billion. ASML also expects semiconductor and memory demand to exceed supply through at least 2028, supporting the broader AI-chip outlook. ASML demand outlook
• Positive Sentiment: Broader growth opportunities: NVIDIA expanded collaborations across robotics, autonomous vehicles, telecom networks, cybersecurity, healthcare, quantum computing and enterprise AI. Partnerships with companies including Agile Robots, Nokia, ServiceNow and multiple data-center providers reinforce its strategy of becoming a full AI-platform supplier rather than solely a GPU designer.
• Neutral Sentiment: Leadership transition: Enterprise marketing executive Laura Fay retired after 10 years, following significant expansion of NVIDIA’s enterprise marketing organization. The departure is not currently presented as a strategic disruption. Laura Fay retirement
• Negative Sentiment: Risks remain: Investors continue to weigh high expectations, AI-financing and power constraints, competition from custom chips and alternative software ecosystems, and NVIDIA’s reliance on manufacturing and infrastructure partners. The DSX announcements are largely forward-looking and may take time to translate into revenue.

Wall Street Analyst Weigh In

Several research analysts recently commented on the company. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of NVIDIA in a research report on Monday, August 31st. Royal Bank Of Canada lifted their target price on NVIDIA from $300.00 to $330.00 and gave the stock an “outperform” rating in a report on Thursday, August 27th. HSBC boosted their target price on NVIDIA from $360.00 to $365.00 in a research report on Thursday, August 27th. DA Davidson restated a “buy” rating and issued a $300.00 price target on shares of NVIDIA in a research report on Thursday, August 27th. Finally, Weiss Ratings raised shares of NVIDIA from a “buy (b)” rating to a “buy (b+)” rating in a research note on Friday. Five research analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, NVIDIA has a consensus rating of “Buy” and a consensus price target of $321.47.

NVIDIA Price Performance

The stock has a 50 day moving average of $223.17 and a 200-day moving average of $212.01. The stock has a market capitalization of $5.35 trillion, a P/E ratio of 28.05, a price-to-earnings-growth ratio of 1.67 and a beta of 2.22. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings data 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 company had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The firm’s revenue for the quarter was up 105.9% on a year-over-year basis. During the same quarter last year, the business posted $1.05 EPS. On average, equities research analysts anticipate that NVIDIA Corporation will post 9.30 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were paid a $0.25 dividend. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA’s dividend payout ratio is 12.64%.

NVIDIA declared that its board has approved a stock repurchase program on Monday, September 28th that permits the company to buy back $150.00 billion in shares. This buyback authorization permits the computer hardware maker to repurchase up to 2.8% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other NVIDIA news, Director Mark A. Stevens sold 622,239 shares of the stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the sale, the director owned 2,336,531 shares of the company’s stock, valued at approximately $541,187,310.22. This trade represents a 21.03% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Timothy S. Teter sold 30,460 shares of the business’s stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the completion of the transaction, the executive vice president owned 2,687,660 shares of the company’s stock, valued at $598,810,648. This represents a 1.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 1,766,118 shares of company stock worth $399,450,353. 3.94% of the stock is currently owned by company insiders.

Institutional Trading of NVIDIA

Several large investors have recently bought and sold shares of the stock. USAdvisors Wealth Management LLC increased its holdings in NVIDIA by 2.3% in the third quarter. USAdvisors Wealth Management LLC now owns 4,256 shares of the computer hardware maker’s stock valued at $972,000 after buying an additional 95 shares in the last quarter. Wavvest Wealth LLC purchased a new stake in shares of NVIDIA during the 3rd quarter worth about $1,525,000. Kraft Davis & Associates LLC grew its position in shares of NVIDIA by 0.3% during the 3rd quarter. Kraft Davis & Associates LLC now owns 34,954 shares of the computer hardware maker’s stock valued at $7,617,000 after acquiring an additional 104 shares during the period. Arvest Investments Inc. grew its position in shares of NVIDIA by 0.6% during the 3rd quarter. Arvest Investments Inc. now owns 27,476 shares of the computer hardware maker’s stock valued at $6,275,000 after acquiring an additional 157 shares during the period. Finally, Albion Financial Group UT increased its stake in shares of NVIDIA by 2.3% in the 3rd quarter. Albion Financial Group UT now owns 286,594 shares of the computer hardware maker’s stock valued at $65,452,000 after purchasing an additional 6,579 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.

NVIDIA Company Profile

NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.

The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.