NVIDIA (NASDAQ:NVDA) Trading 6.3% Higher – Here’s What Happened

NVIDIA Corporation (NASDAQ:NVDA) traded up 6.3% during trading on Monday . The stock traded as high as $224.87 and last traded at $224.36. 208,206,741 shares were traded during trading, an increase of 21% from the average session volume of 172,072,672 shares. The stock had previously closed at $211.14.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Analysts and firms remained bullish, with Tigress Financial raising its price target to $425, Needham reiterating Buy with a $270 target, and DA Davidson also reaffirming Buy. Several reports framed Nvidia’s AI PC and infrastructure push as evidence the company still has room to grow. Article Title
• Positive Sentiment: Nvidia’s RTX Spark launch is seen as a strategic move into AI-powered PCs, which could open a new revenue stream and strengthen the company’s ecosystem across laptops, desktops, and Microsoft Windows devices. Article Title
• Positive Sentiment: Multiple partners and peers are being pulled higher by Nvidia’s ecosystem expansion, including Marvell after Huang called it a future trillion-dollar company and Aptiv, Coherent, Lightmatter, Ayar Labs, Netris, TSMC, and HP through new AI infrastructure and PC-related collaborations. Article Title
• Positive Sentiment: Nvidia executives said supply remains sufficient to support robust CPU and GPU growth, which helps ease concerns that demand will outstrip execution. Article Title

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the stock. Itau BBA Securities reaffirmed a “market perform” rating on shares of NVIDIA in a research report on Thursday, February 26th. Mizuho set a $300.00 price objective on NVIDIA in a research note on Thursday, May 21st. Argus boosted their price objective on NVIDIA from $220.00 to $270.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Wolfe Research reiterated an “outperform” rating and set a $275.00 price objective on shares of NVIDIA in a research note on Thursday, May 21st. Finally, New Street Research cut their price objective on NVIDIA from $343.00 to $340.00 in a research note on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, forty-seven have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Buy” and a consensus price target of $305.38.

NVIDIA Stock Performance

The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The business’s fifty day simple moving average is $200.19 and its 200-day simple moving average is $189.85. The firm has a market capitalization of $5.39 trillion, a PE ratio of 34.12, a price-to-earnings-growth ratio of 0.54 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business had revenue of $81.62 billion during the quarter, compared to analyst estimates of $78.42 billion. During the same period last year, the firm posted $0.81 EPS. The company’s revenue was up 85.2% on a year-over-year basis. As a group, equities research analysts expect that NVIDIA Corporation will post 8.04 EPS for the current year.

NVIDIA Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Thursday, June 4th will be given a dividend of $0.25 per share. The ex-dividend date is Thursday, June 4th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.4%. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s dividend payout ratio is currently 0.61%.

NVIDIA declared that its board has approved a share repurchase plan on Wednesday, May 20th that permits the company to buyback $80.00 billion in shares. This buyback authorization permits the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board believes its shares are undervalued.

Insider Activity

In related news, Director Mark A. Stevens sold 221,682 shares of the stock in a transaction on Friday, March 20th. The stock was sold at an average price of $173.68, for a total transaction of $38,501,729.76. Following the sale, the director owned 7,399,771 shares in the company, valued at approximately $1,285,192,227.28. This represents a 2.91% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director John Dabiri sold 3,004 shares of the stock in a transaction on Friday, March 13th. The shares were sold at an average price of $184.90, for a total value of $555,439.60. Following the sale, the director owned 14,788 shares in the company, valued at $2,734,301.20. The trade was a 16.88% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 906,961 shares of company stock worth $162,936,268. 3.94% of the stock is owned by corporate insiders.

Institutional Trading of NVIDIA

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Lifetime Wealth Management P.C. bought a new stake in NVIDIA during the fourth quarter valued at about $26,000. Longview Financial Advisors Inc. bought a new stake in NVIDIA during the first quarter valued at about $27,000. Longfellow Investment Management Co. LLC boosted its position in NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after purchasing an additional 67 shares in the last quarter. Phillip James Consulting Co. bought a new stake in NVIDIA during the first quarter valued at about $40,000. Finally, Spurstone Advisory Services LLC bought a new stake in NVIDIA during the second quarter valued at about $40,000. Hedge funds and other institutional investors 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.