NVIDIA (NASDAQ:NVDA) Issues Quarterly Earnings Results, Beats Expectations By $0.13 EPS

NVIDIA (NASDAQ:NVDA) released its quarterly earnings data on Wednesday. The computer hardware maker reported $2.22 EPS for the quarter, beating the consensus estimate of $2.09 by $0.13, FiscalAI reports. The company had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.

NVIDIA Stock Down 1.6%

Shares of NASDAQ:NVDA traded down $3.39 during midday trading on Wednesday, reaching $209.66. The company had a trading volume of 169,150,549 shares, compared to its average volume of 158,571,266. The stock has a market capitalization of $5.07 trillion, a P/E ratio of 32.11, a PEG ratio of 0.41 and a beta of 2.23. The stock’s fifty day moving average price is $207.50 and its 200-day moving average price is $200.09. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. NVIDIA has a one year low of $164.07 and a one year high of $236.54.

Insider Buying and Selling at NVIDIA

In other NVIDIA news, Director Stephen C. Neal sold 15,500 shares of the firm’s stock in a transaction on 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 directly owned 116,135 shares of the company’s stock, valued at $25,053,803.55. This trade represents a 11.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Mark A. Stevens sold 885,000 shares of the business’s stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the completion of the sale, the director directly owned 5,207,271 shares of the company’s stock, valued at $1,094,412,146.07. The trade was a 14.53% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 1,900,500 shares of company stock valued at $410,449,265. 3.94% of the stock is owned by company insiders.

Institutional Investors Weigh In On NVIDIA

A number of institutional investors have recently made changes to their positions in NVDA. United Bank lifted its stake in NVIDIA by 5.6% during the first quarter. United Bank now owns 66,009 shares of the computer hardware maker’s stock worth $11,512,000 after purchasing an additional 3,525 shares during the last quarter. Birchwood Financial Partners Inc. bought a new stake in NVIDIA during the fourth quarter valued at $60,000. Valley Financial Group Inc. raised its holdings in shares of NVIDIA by 9.5% during the fourth quarter. Valley Financial Group Inc. now owns 2,804 shares of the computer hardware maker’s stock worth $523,000 after purchasing an additional 244 shares during the period. Strive Financial Group LLC acquired a new stake in shares of NVIDIA during the fourth quarter worth $6,314,000. Finally, Widmann Financial Services Inc. boosted its holdings in shares of NVIDIA by 0.5% in the 4th quarter. Widmann Financial Services Inc. now owns 13,319 shares of the computer hardware maker’s stock valued at $2,484,000 after buying an additional 60 shares during the period. 65.27% of the stock is currently owned by institutional investors.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Record results and stronger guidance: Fiscal Q2 revenue reached $96.2 billion, up 106% year over year, while adjusted earnings per share were $2.22 versus the $2.09 consensus. Data Center revenue climbed 117% to $89.0 billion. NVIDIA forecast fiscal Q3 revenue of approximately $108 billion, above the roughly $103.5 billion analyst estimate. NVIDIA earnings report
• Positive Sentiment: AI infrastructure demand remains robust: NVIDIA said its Vera Rubin platform is in full production, with major cloud partners deploying systems. The company also announced that AWS and NVIDIA plan to deliver 2 million additional GPUs, supporting continued demand across agentic and physical AI. AWS and NVIDIA GPU expansion
• Positive Sentiment: Strong profitability and shareholder returns: Gross margin was 75%, operating income rose 124% year over year and NVIDIA returned approximately $26 billion through buybacks and dividends. Management also announced financing partnerships intended to mobilize more than $500 billion for AI infrastructure.
• Neutral Sentiment: Expectations are unusually elevated: Options markets implied a potential 5.4% post-earnings move, and analysts and investors were already heavily positioned for a beat. As a result, strong results may have been largely priced into NVDA before the report. NVIDIA options volatility
• Negative Sentiment: Margin guidance softened: NVIDIA expects fiscal Q3 gross margin of about 74%, below the current quarter’s 75%. Investors interpreted the decline as a potential sign of rising costs, product-transition pressure or less favorable mix.
• Negative Sentiment: China revenue excluded: The Q3 outlook assumes no Data Center compute revenue from China, highlighting continuing export-control and market-access risks.
• Negative Sentiment: Custom-chip competition is increasing: OpenAI’s Jalapeño ASIC reportedly delivers superior efficiency on select inference workloads, while Microsoft and other hyperscalers are developing proprietary silicon. That raises longer-term concerns about NVIDIA’s market share and margins, even though the shift is unlikely to materially disrupt near-term demand. OpenAI Jalapeño chip

Analysts Set New Price Targets

NVDA has been the subject of a number of recent research reports. Wells Fargo & Company reiterated an “overweight” rating and issued a $315.00 target price on shares of NVIDIA in a research note on Tuesday, August 11th. Robert W. Baird set a $500.00 price target on NVIDIA and gave the stock an “outperform” rating in a report on Thursday, May 21st. Sanford C. Bernstein reaffirmed a “buy” rating on shares of NVIDIA in a research report on Monday, June 29th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $300.00 price objective (up from $275.00) on shares of NVIDIA in a research report on Thursday, May 21st. Finally, Wedbush lifted their price objective on shares of NVIDIA from $300.00 to $330.00 and gave the company an “outperform” rating in a research note on Thursday, May 21st. One equities research analyst has rated the stock with a Strong Buy rating, fifty have issued a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $308.46.

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

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.