NVIDIA (NASDAQ:NVDA) Stock Price Up 1.8% – Still a Buy?

NVIDIA Corporation (NASDAQ:NVDA)’s share price was up 1.8% during trading on Thursday . The company traded as high as $230.40 and last traded at $228.45. 131,383,770 shares changed hands during mid-day trading, a decline of 17% from the average daily volume of 159,036,828 shares. The stock had previously closed at $224.41.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Hugging Face expands NVIDIA’s AI ecosystem: The acquisition gives NVIDIA access to Hugging Face’s open-source platform, which hosts millions of models, applications and datasets used by more than 18 million developers. Investors view the deal as a way to deepen CUDA adoption, strengthen NVIDIA’s software moat and position the company as an AI platform provider rather than solely a chip supplier. Management says Hugging Face will remain open to the broader AI ecosystem. Why NVIDIA’s defensive move to acquire Hugging Face is about much more than chips
• Positive Sentiment: New consumer AI revenue channel: Lenovo and Acer are expected to launch Windows PCs powered by NVIDIA’s RTX Spark chip in October. Local AI processing could expand NVIDIA’s addressable market while reducing reliance on cloud data centers. HP also announced new OmniBook PCs using RTX Spark technology. NVIDIA sets October launch for RTX Spark AI PCs
• Positive Sentiment: Analyst support and demand remain strong: Needham and Rosenblatt reaffirmed Buy ratings with price targets of $300 and $390, respectively. Recent earnings showed revenue growth above 100%, a 63.7% net margin and results ahead of consensus, while management’s long-term outlook continues to imply robust AI infrastructure spending. NVIDIA’s equity investments in companies such as OpenAI, CoreWeave and Nebius have also grown substantially, reinforcing its influence across the AI supply chain. NVIDIA has built a $99 billion equity portfolio
• Neutral Sentiment: Competitive and valuation considerations: NVIDIA remains dominant, but AMD, Broadcom and Intel are pursuing AI and server opportunities. Rising memory and optical-networking costs could pressure gross margins even if they confirm that demand exceeds supply.
• Negative Sentiment: Insider selling adds a cautionary signal: Director Mark Stevens sold roughly 648,500 shares in two transactions, while EVP Timothy Teter sold 30,000 shares. The sales were disclosed under planned transactions and represent small portions of their remaining holdings, limiting their significance but potentially weighing on sentiment.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the stock. President Capital increased their price objective on shares of NVIDIA from $295.00 to $330.00 in a research note on Thursday, August 27th. Truist Financial boosted their price objective on NVIDIA from $307.00 to $346.00 and gave the company a “buy” rating in a research report on Thursday, August 27th. Royal Bank Of Canada upped their price objective on NVIDIA from $300.00 to $330.00 and gave the stock an “outperform” rating in a research note on Thursday, August 27th. KGI Securities raised their target price on NVIDIA from $335.00 to $345.00 in a research note on Thursday, August 27th. Finally, Melius Research set a $420.00 price target on shares of NVIDIA in a report on Thursday, August 27th. Two investment analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $324.83.

NVIDIA Stock Up 0.8%

The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The firm has a market capitalization of $5.55 trillion, a P/E ratio of 29.12, a PEG ratio of 1.79 and a beta of 2.22. The firm’s fifty day moving average price is $210.61 and its 200-day moving average price is $202.05.

NVIDIA (NASDAQ:NVDA) last released its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The firm had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. During the same period in the prior year, the firm posted $1.05 earnings per share. The firm’s revenue for the quarter was up 105.9% compared to the same quarter last year. As a group, equities research analysts forecast that NVIDIA Corporation will post 9.1 earnings per share for the current year.

NVIDIA Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend is Thursday, September 10th. NVIDIA’s payout ratio is presently 12.64%.

NVIDIA declared that its board has initiated a share repurchase program on Wednesday, May 20th that permits the company to buyback $80.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Insider Transactions at NVIDIA

In other news, Director Mark Stevens sold 63,501 shares of the firm’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $220.06, for a total transaction of $13,974,030.06. Following the completion of the transaction, the director owned 4,558,770 shares in the company, valued at approximately $1,003,202,926.20. This trade represents a 1.37% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, EVP Timothy Teter sold 30,000 shares of NVIDIA stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the completion of the transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at $585,587,360.80. This represents a 1.10% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,563,501 shares of company stock valued at $335,380,530 over the last three months. 3.94% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On NVIDIA

Several large investors have recently modified their holdings of NVDA. Brighton Jones LLC boosted its position in shares of NVIDIA by 12.4% in the 4th quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker’s stock valued at $43,631,000 after purchasing an additional 35,815 shares during the period. Bank Pictet & Cie Europe AG raised its holdings in NVIDIA by 1.0% during the 4th quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker’s stock worth $315,100,000 after buying an additional 22,929 shares during the period. Highview Capital Management LLC DE raised its holdings in NVIDIA by 6.7% during the 4th quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker’s stock worth $7,842,000 after buying an additional 3,653 shares during the period. Hudson Value Partners LLC lifted its stake in NVIDIA by 30.7% during the fourth quarter. Hudson Value Partners LLC now owns 50,658 shares of the computer hardware maker’s stock valued at $6,805,000 after buying an additional 11,900 shares in the last quarter. Finally, Wealth Group Ltd. lifted its stake in NVIDIA by 15.7% during the first quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker’s stock valued at $715,000 after buying an additional 896 shares in the last quarter. 65.27% of the stock is owned by institutional investors.

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.