NVIDIA Corporation (NASDAQ:NVDA – Get Free Report)’s stock price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $209.66, but opened at $222.86. NVIDIA shares last traded at $224.5450, with a volume of 68,698,740 shares.
The computer hardware maker reported $2.22 earnings per share for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. The company had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company’s revenue was up 105.9% on a year-over-year basis. During the same quarter last year, the firm earned $1.05 earnings per share.
NVIDIA Announces Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be issued a $0.25 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. NVIDIA’s payout ratio is currently 15.31%.
NVIDIA News Summary
Here are the key news stories impacting NVIDIA this week:
- Positive Sentiment: Record results exceeded expectations: Fiscal Q2 revenue reached $96.2 billion, up 106% year over year, while non-GAAP EPS of $2.22 topped the $2.09 consensus estimate. Data Center revenue rose 117% to $89.0 billion, and GAAP gross margin was a robust 75%. NVIDIA fiscal second-quarter results
- Positive Sentiment: Strong forward outlook: NVIDIA forecast approximately $108 billion in fiscal Q3 revenue, above Wall Street expectations, and indicated roughly 70% fiscal 2028 revenue growth versus analyst expectations near 45%. CEO Jensen Huang said AI infrastructure demand is accelerating and the buildout is “at full steam.” NVIDIA signals longer AI spending runway
- Positive Sentiment: Customer demand remains substantial: Amazon Web Services and NVIDIA announced plans to deploy an additional two million GPUs, while the company highlighted production ramps for its Vera Rubin platform and continued hyperscaler adoption. AWS expands NVIDIA GPU order
- Positive Sentiment: Analyst support strengthened: Needham raised its price target to $300 and maintained a Buy rating; other firms also lifted targets following the results. Investors continue to view NVDA’s growth and valuation as attractive relative to its earnings trajectory. Needham raises NVIDIA price target
- Neutral Sentiment: Potential Hugging Face acquisition: Reports say NVIDIA may acquire open-source AI platform Hugging Face for approximately $12.9 billion to expand its software and developer ecosystem. However, the reports indicate discussions may not be finalized, and the price would represent a substantial premium to Hugging Face’s prior valuation. NVIDIA reportedly agrees to buy Hugging Face
- Negative Sentiment: Margins are expected to soften: NVIDIA guided fiscal Q3 gross margin to 74%, below the latest quarter’s 75%, as memory, advanced packaging and power constraints pressure costs. Investors are watching whether higher spending and supply investments could limit profitability.
- Negative Sentiment: Risks remain around China, competition and financing: The forecast assumes no Data Center compute revenue from China. Meanwhile, custom chips from OpenAI and Microsoft could gradually reduce hyperscaler reliance on NVIDIA, while the company’s investments and customer-financing initiatives have prompted concerns about circular financing and return on investment. Jensen Huang discusses NVIDIA AI investments
Analysts Set New Price Targets
NVDA has been the subject of a number of analyst reports. UBS Group set a $300.00 price target on shares of NVIDIA in a research report on Thursday. Zacks Research lowered NVIDIA from a “strong-buy” rating to a “hold” rating in a research note on Friday, August 21st. BMO Capital Markets set a $340.00 price objective on NVIDIA and gave the company an “outperform” rating in a report on Thursday, August 20th. Bank of America reiterated a “buy” rating and set a $350.00 target price (up from $320.00) on shares of NVIDIA in a research report on Thursday, May 21st. Finally, Susquehanna reissued a “positive” rating and set a $275.00 target price (up from $250.00) on shares of NVIDIA in a report on Tuesday, May 12th. One equities research analyst has rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, NVIDIA presently has an average rating of “Moderate Buy” and an average price target of $320.84.
View Our Latest Report on NVIDIA
Insider Buying and Selling at NVIDIA
In other NVIDIA news, Director Stephen C. Neal sold 15,500 shares of the business’s stock in a transaction dated Wednesday, June 3rd. The stock was 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 of the company’s stock, valued at approximately $25,053,803.55. The trade was a 11.77% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Mark A. Stevens sold 885,000 shares of the 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 transaction, the director directly owned 5,207,271 shares of the company’s stock, valued at $1,094,412,146.07. This trade represents a 14.53% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 1,900,500 shares of company stock worth $410,449,265. Corporate insiders own 3.94% of the company’s stock.
Institutional Trading of NVIDIA
Hedge funds have recently added to or reduced their stakes in the stock. HORAN Wealth LLC grew its stake in shares of NVIDIA by 5.6% during the second quarter. HORAN Wealth LLC now owns 57,377 shares of the computer hardware maker’s stock worth $11,480,000 after buying an additional 3,018 shares during the last quarter. Wellington Grp LLC lifted its stake in shares of NVIDIA by 8.7% in the 2nd quarter. Wellington Grp LLC now owns 29,558 shares of the computer hardware maker’s stock valued at $5,914,000 after acquiring an additional 2,376 shares during the last quarter. Brown Financial Advisors boosted its holdings in shares of NVIDIA by 21.3% during the 2nd quarter. Brown Financial Advisors now owns 42,229 shares of the computer hardware maker’s stock valued at $8,450,000 after acquiring an additional 7,404 shares in the last quarter. Kirkwood Financial Services acquired a new stake in shares of NVIDIA during the 2nd quarter valued at $864,000. Finally, Tobias Financial Advisors Inc. grew its position in NVIDIA by 50.0% during the 2nd quarter. Tobias Financial Advisors Inc. now owns 29,786 shares of the computer hardware maker’s stock worth $5,960,000 after acquiring an additional 9,924 shares during the last quarter. Institutional investors and hedge funds own 65.27% of the company’s stock.
NVIDIA Trading Up 7.8%
The business has a fifty day simple moving average of $207.61 and a 200-day simple moving average of $200.35. 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 firm has a market cap of $5.47 trillion, a price-to-earnings ratio of 34.57, a PEG ratio of 0.42 and a beta of 2.23.
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.
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