NVIDIA (NASDAQ:NVDA) Shares Up 3.4% – Should You Buy?

Shares of NVIDIA Corporation (NASDAQ:NVDA) shot up 3.4% during trading on Wednesday . The company traded as high as $222.22 and last traded at $219.22. 155,655,206 shares changed hands during mid-day trading, a decline of 5% from the average session volume of 163,495,578 shares. The stock had previously closed at $211.94.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: SpaceX partnership reinforces demand for NVIDIA hardware. SpaceX reportedly plans to deploy NVIDIA’s next-generation AI hardware across its terrestrial and orbital computing infrastructure, adding another high-profile customer and supporting the company’s long-term data-center growth narrative. Time to Buy Nvidia or SpaceX Stock After Their AI Partnership?
• Positive Sentiment: AI infrastructure expansion continues to generate tangible demand. NVIDIA-backed AI-factory developer Firmus raised $2 billion at a valuation above $10.5 billion, while Zayo announced plans to expand network capacity for AI factories. Separately, AZIO AI outlined a potential purchase of up to 128 NVIDIA HGX B300 systems worth approximately $77 million, although the agreement remains subject to future orders and conditions. Firmus nearly doubles valuation
• Positive Sentiment: Analyst and investor sentiment remains bullish. Commentators cite surging AI demand, strong cash flow and NVIDIA’s position as the leading supplier of AI infrastructure. Recent analyst targets have a median of $308.50, substantially above the current trading level, and firms including Needham and Benchmark maintain Buy ratings. Should You Buy NVIDIA Stock After Its 11% Rally in a Month?
• Neutral Sentiment: Earnings are the next major test. NVIDIA is expected to report results on August 26, with investors watching revenue growth, networking demand, margins and customer spending. Options coverage highlights opportunities for volatility around the report, while the recent rally has increased the risk of profit-taking if guidance does not exceed elevated expectations. Nvidia Earnings: Turn a Profit Trading Around the AI Chipmaker’s Report
• Negative Sentiment: Competitive pressure and supply-chain concerns remain risks. AMD’s acquisition of AI-inference chip startup Taalas could strengthen its challenge to NVIDIA, particularly in inference workloads. Separately, a cautious SanDisk outlook has pressured the broader AI and memory-chip group, renewing concerns about memory availability and infrastructure bottlenecks. Nvidia Stock Jumps After AMD Acquires AI Startup Taalas
• Negative Sentiment: Insider selling is a notable caution signal. NVIDIA insiders reportedly made 45 open-market sales and no purchases during the past six months, including substantial sales by Mark Stevens and Ajay Puri. Such transactions may reflect diversification rather than a change in business outlook, but they can weigh on sentiment.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on NVDA. Raymond James Financial reaffirmed a “strong-buy” rating and issued a $330.00 target price on shares of NVIDIA in a research report on Thursday, May 21st. JPMorgan Chase & Co. increased their price objective on shares of NVIDIA from $265.00 to $280.00 and gave the stock an “overweight” rating in a research note on Thursday, May 21st. China Renaissance initiated coverage on NVIDIA in a report on Friday, June 5th. They issued a “buy” rating and a $319.00 price objective for the company. President Capital lifted their target price on NVIDIA from $280.00 to $295.00 and gave the company a “buy” rating in a research report on Thursday, May 21st. Finally, Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and set a $255.00 target price (up from $220.00) on shares of NVIDIA in a report on Thursday, May 21st. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, NVIDIA presently has a consensus rating of “Buy” and a consensus price target of $304.26.

NVIDIA Stock Performance

The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The stock has a 50-day moving average price of $205.40 and a 200-day moving average price of $197.00. The company has a market capitalization of $5.42 trillion, a price-to-earnings ratio of 34.30, a PEG ratio of 0.43 and a beta of 2.23.

NVIDIA (NASDAQ:NVDA) last posted its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share 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 for the quarter, compared to analyst estimates of $78.42 billion. During the same period in the previous year, the firm earned $0.81 EPS. The firm’s revenue was up 85.2% compared to the same quarter last year. As a group, analysts forecast that NVIDIA Corporation will post 8.79 earnings per share for the current year.

NVIDIA Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Thursday, June 4th were given a $0.25 dividend. The ex-dividend date of this dividend was Thursday, June 4th. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a dividend yield of 0.4%. NVIDIA’s payout ratio is currently 15.31%.

NVIDIA declared that its Board of Directors has authorized a stock buyback plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to purchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Insider Transactions at NVIDIA

In related news, Director John Dabiri sold 625 shares of NVIDIA 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 completion of the sale, the director owned 14,163 shares of the company’s stock, valued at approximately $3,030,882. The trade was a 4.23% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of the company’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the transaction, the director owned 116,135 shares in the company, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 1,901,125 shares of company stock worth $410,583,015. 3.94% of the stock is owned by insiders.

Hedge Funds Weigh In On NVIDIA

A number of large investors have recently made changes to their positions in NVDA. Diversified Enterprises LLC increased its holdings in shares of NVIDIA by 44.2% in the 4th quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker’s stock valued at $23,798,000 after acquiring an additional 39,129 shares during the last quarter. ASR Vermogensbeheer N.V. raised its position in shares of NVIDIA by 1.8% during the 4th quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker’s stock worth $591,086,000 after acquiring an additional 54,877 shares in the last quarter. Storen Legacy Partners LLC purchased a new stake in NVIDIA during the fourth quarter worth approximately $1,350,000. Weaver Capital Management LLC boosted its holdings in NVIDIA by 5.5% in the fourth quarter. Weaver Capital Management LLC now owns 85,216 shares of the computer hardware maker’s stock valued at $15,893,000 after purchasing an additional 4,439 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in NVIDIA by 3.6% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 26,652,420 shares of the computer hardware maker’s stock valued at $4,970,704,000 after purchasing an additional 936,506 shares in the last quarter. Institutional investors own 65.27% of the company’s stock.

About NVIDIA

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.