NVIDIA (NASDAQ:NVDA) Cut to Buy at Wall Street Zen

Wall Street Zen downgraded shares of NVIDIA (NASDAQ:NVDA) from a strong-buy rating to a buy rating in a report issued on Saturday morning,Wall Street Zen reports.

A number of other research analysts have also recently issued reports on the company. JPMorgan Chase & Co. raised their price objective on NVIDIA from $280.00 to $320.00 and gave the company an “overweight” rating in a research note on Thursday, August 27th. DZ Bank reissued a “buy” rating on shares of NVIDIA in a research note on Wednesday, August 26th. Itau BBA Securities dropped their target price on NVIDIA from $256.00 to $218.00 in a report on Wednesday, June 24th. Melius Research set a $420.00 target price on NVIDIA in a report on Thursday, August 27th. Finally, Jefferies Financial Group reaffirmed a “buy” rating on shares of NVIDIA in a research note on Wednesday, August 26th. Four investment analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Buy” and a consensus target price of $324.14.

NVIDIA Trading Up 1.7%

Shares of NVDA opened at $228.86 on Friday. NVIDIA has a fifty-two week low of $164.27 and a fifty-two week high of $236.54. The firm has a market cap of $5.52 trillion, a price-to-earnings ratio of 28.93, a PEG ratio of 1.74 and a beta of 2.22. The firm has a 50 day moving average price of $217.03 and a 200-day moving average price of $206.33. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59.

NVIDIA (NASDAQ:NVDA) last released its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, beating the consensus estimate of $2.09 by $0.13. The company had revenue of $96.22 billion for 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 quarterly revenue was up 105.9% compared to the same quarter last year. During the same quarter last year, the firm earned $1.05 EPS. As a group, equities research analysts forecast that NVIDIA will post 9.25 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. Stockholders 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 dividend yield of 0.4%. The ex-dividend date is Thursday, September 10th. NVIDIA’s dividend payout ratio is currently 12.64%.

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

Insider Buying and Selling

In related news, CFO Colette Kress sold 34,918 shares of the business’s stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the transaction, the chief financial officer owned 765,103 shares in the company, valued at $167,595,812.15. The trade was a 4.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy Teter sold 30,460 shares of the company’s stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the transaction, the executive vice president directly owned 2,687,660 shares of the company’s stock, valued at $598,810,648. The trade was a 1.12% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,766,118 shares of company stock valued at $399,450,353 over the last ninety days. 3.94% of the stock is owned by insiders.

Hedge Funds Weigh In On NVIDIA

Hedge funds and other institutional investors have recently made changes to their positions in the business. Montgomery Financial Services LLC purchased a new position in shares of NVIDIA during the second quarter valued at about $28,000. Lifetime Wealth Management P.C. purchased a new stake in NVIDIA in the fourth quarter worth about $26,000. Longview Financial Advisors Inc. bought a new stake in NVIDIA during the 1st quarter valued at approximately $27,000. Phillip James Consulting Co. bought a new stake in NVIDIA during the 1st quarter valued at approximately $40,000. Finally, Bard Associates Inc. grew its holdings in shares of NVIDIA by 8,866.7% during the 2nd quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker’s stock worth $54,000 after acquiring an additional 266 shares during the period. Institutional investors own 65.27% of the company’s stock.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Record buyback signals confidence and may support earnings per share. NVIDIA authorized an additional $150 billion in share repurchases, bringing the remaining program to $235 billion through fiscal 2028—the largest increase in its history. The move highlights the company’s substantial cash generation and could reduce the share count over time. Nvidia adds $150 billion to existing share repurchase plan
• Positive Sentiment: Possible reopening of China demand provides an additional sales catalyst. Chinese officials reportedly asked ByteDance and Alibaba to outline potential purchases of NVIDIA’s RTX PRO 5500 processors, suggesting Beijing may permit selected companies to buy some NVIDIA chips despite U.S. export restrictions. Any approval would expand NVIDIA’s addressable market, although the policy remains unconfirmed. China weighs letting ByteDance and Alibaba buy new Nvidia chips
• Positive Sentiment: AI safety platform broadens NVIDIA’s software opportunity. The company launched its Open Agent Safety Platform, including tools that isolate AI agents, enforce access policies, monitor behavior, and shut down violations. The initiative addresses high-profile AI security incidents and could strengthen NVIDIA’s software ecosystem while encouraging safer enterprise adoption. Nvidia releases software platform to stop AI agents from misbehaving
• Positive Sentiment: Advanced packaging could increase future chip capacity. NVIDIA is reportedly exploring glass substrates to build larger packages with denser connections and more high-bandwidth memory. The technology could help address scaling constraints, though rising HBM prices make packaging economics increasingly important. Nvidia’s Glass Packaging Push Could Reshape AI Chips
• Neutral Sentiment: Technical analysts see further upside but require a breakout. One forecast identifies $261.84–$265.30 as a potential target if NVDA clears approximately $234.76. This is market sentiment rather than a fundamental change and depends on continued momentum. NVIDIA Stock Forecast: Breakout Could Unlock $265 Target
• Negative Sentiment: Macro and valuation risks remain. Oil above $106 and Treasury yields above 5.20% pressured technology stocks, while NVIDIA’s multitrillion-dollar valuation leaves little room for execution or demand disappointments.
• Negative Sentiment: Competition and concentration could limit long-term returns. Hyperscalers and AI laboratories are developing proprietary chips, while most of NVIDIA’s revenue remains tied to data-center demand. Investors must also monitor energy costs, HBM prices, export controls, and whether AI spending ultimately produces sufficient returns.

NVIDIA Company Profile

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.