NVIDIA (NASDAQ:NVDA) Stock Price Up 1.3% – Here’s Why

NVIDIA Corporation (NASDAQ:NVDA)’s share price shot up 1.3% during trading on Monday . The company traded as high as $196.18 and last traded at $194.97. 146,664,141 shares changed hands during mid-day trading, a decline of 14% from the average session volume of 169,994,344 shares. The stock had previously closed at $192.53.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s partnership with Palantir to bring open AI models into U.S. government systems is boosting confidence that NVDA’s AI stack is expanding into high-value enterprise and public-sector use cases. Palantir and Nvidia Bring Open AI Models Inside U.S. Government Systems
• Positive Sentiment: Firmus Technologies struck an AI access deal with NVIDIA, another sign that NVDA is deepening its reach across the global AI infrastructure market and helping smaller AI firms get access to compute. Australia’s Firmus Technologies strikes AI access deal with Nvidia
• Positive Sentiment: Sanford C. Bernstein reaffirmed its buy rating on NVIDIA, adding to the view that Wall Street still sees meaningful upside despite recent volatility. NVIDIA Corp. Bernstein reaffirms its buy rating
• Positive Sentiment: Multiple articles argue the recent tech and chip selloff is a buying opportunity, with NVIDIA highlighted as a long-term beneficiary of continued AI capex spending. Dan Ives Says the $3 Trillion Tech Wipeout Is a Buying Opportunity. Here’s His Case

Analyst Ratings Changes

A number of research firms have recently issued reports on NVDA. New Street Research reduced their price target on shares of NVIDIA from $343.00 to $340.00 in a research report on Thursday, May 21st. Wall Street Zen raised shares of NVIDIA from a “buy” rating to a “strong-buy” rating in a report on Saturday, May 23rd. DA Davidson restated a “buy” rating and issued a $300.00 target price on shares of NVIDIA in a research note on Monday, June 1st. Melius Research set a $400.00 price target on NVIDIA in a research report on Thursday, May 21st. Finally, Seaport Research Partners raised their price target on NVIDIA from $140.00 to $180.00 and gave the stock a “sell” rating in a report on Thursday, May 21st. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Buy” and a consensus target price of $303.84.

NVIDIA Stock Up 1.3%

The firm’s 50 day simple moving average is $210.66 and its 200 day simple moving average is $193.06. The company has a market cap of $4.72 trillion, a price-to-earnings ratio of 29.86, a price-to-earnings-growth ratio of 0.43 and a beta of 2.22. 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) last issued its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (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 business had revenue of $81.61 billion during the quarter, compared to analyst estimates of $78.42 billion. During the same period in the prior year, the company posted $0.81 EPS. The business’s revenue for the quarter was up 85.2% compared to the same quarter last year. Sell-side analysts anticipate that NVIDIA Corporation will post 8.69 EPS for the current fiscal year.

NVIDIA Increases Dividend

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

NVIDIA announced that its Board of Directors has authorized a share repurchase plan on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Activity at NVIDIA

In other NVIDIA news, Director John Dabiri sold 625 shares of the firm’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 transaction, the director owned 14,163 shares of the company’s stock, valued at approximately $3,030,882. This trade represents a 4.23% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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 dated Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the sale, the director owned 116,135 shares in the company, valued at $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,901,125 shares of company stock worth $410,583,015 in the last 90 days. Corporate insiders own 3.94% of the company’s stock.

Institutional Trading of NVIDIA

Institutional investors have recently modified their holdings of the company. WealthPoint Financial LLC grew its holdings in NVIDIA by 10.8% during the first quarter. WealthPoint Financial LLC now owns 9,577 shares of the computer hardware maker’s stock worth $1,670,000 after acquiring an additional 934 shares during the period. Hamilton Wealth LLC grew its stake in shares of NVIDIA by 4.5% in the 1st quarter. Hamilton Wealth LLC now owns 172,760 shares of the computer hardware maker’s stock worth $30,129,000 after purchasing an additional 7,459 shares during the last quarter. Basecamp Wealth Advisors LLC raised its holdings in shares of NVIDIA by 0.4% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 83,265 shares of the computer hardware maker’s stock worth $14,521,000 after purchasing an additional 311 shares in the last quarter. Redwood Investment Management LLC lifted its stake in NVIDIA by 3.7% during the first quarter. Redwood Investment Management LLC now owns 51,707 shares of the computer hardware maker’s stock valued at $9,018,000 after purchasing an additional 1,830 shares during the last quarter. Finally, MTM Financial Group LLC bought a new stake in NVIDIA during the first quarter worth approximately $206,000. Institutional investors and hedge funds own 65.27% of the company’s stock.

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.