Key Points
- NVIDIA Director Mark Stevens sold 500,000 shares on June 4 at an average price of $219.83, totaling about $109.9 million. After the sale, he still held roughly 6.4 million shares.
- NVIDIA’s fundamentals remain strong, with the company recently reporting earnings and revenue that beat analyst estimates, while quarterly revenue jumped 85.2% year over year. The stock also has a huge market cap of about $5.29 trillion and is trading near its 52-week high.
- The company is returning more capital to shareholders through a new quarterly dividend of $0.25 per share, up from $0.01 previously, and an $80 billion share buyback authorization. Analysts remain bullish, with a consensus rating of “Buy” and a target price around $305.38.
NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) Director Mark Stevens sold 500,000 shares of the company's stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $219.83, for a total transaction of $109,915,000.00. Following the completion of the sale, the director directly owned 6,399,771 shares in the company, valued at approximately $1,406,861,658.93. The trade was a 7.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this link.
NVIDIA Stock Up 1.8%
Shares of NVDA stock opened at $218.66 on Friday. 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's 50-day moving average is $202.84 and its 200-day moving average is $190.45. The stock has a market cap of $5.29 trillion, a price-to-earnings ratio of 33.49, a PEG ratio of 0.52 and a beta of 2.22. NVIDIA Corporation has a 52-week low of $138.83 and a 52-week high of $236.54.
NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its earnings results 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. The company had revenue of $81.62 billion for the quarter, compared to analysts' expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. NVIDIA's quarterly revenue was up 85.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.81 EPS. Sell-side analysts predict 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 issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Thursday, June 4th. This is a positive change from NVIDIA's previous quarterly dividend of $0.01. NVIDIA's payout ratio is currently 0.61%.
NVIDIA announced that its Board of Directors has initiated a share buyback plan on Wednesday, May 20th that permits the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization permits the computer hardware maker to purchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board believes its shares are undervalued.
Key NVIDIA News
Here are the key news stories impacting NVIDIA this week:
- Positive Sentiment: Goldman Sachs continues to highlight NVIDIA as one of its top tech holdings, with an implied upside that suggests Wall Street still sees significant room for appreciation. NVIDIA Corporation (NVDA): Top 10 Goldman Sachs Tech Stocks to Buy Now
- Positive Sentiment: Taiwan Semiconductor said it signed a major AI partnership with NVIDIA, underscoring continued ecosystem expansion around NVIDIA’s AI hardware and infrastructure platform. Taiwan Semiconductor Manufacturing Signs Major AI Deal With Nvidia
- Positive Sentiment: Multiple reports said NVIDIA CEO Jensen Huang’s South Korea trip is drawing attention to new AI opportunities, including robotics and deeper ties with key suppliers and partners, which supports the long-term growth narrative. Nvidia CEO sees robotics as next major sector in South Korea
- Positive Sentiment: Analysts and market commentary continue to frame NVIDIA as the best-positioned AI chip leader, with several notes arguing that its Blackwell ramp, CUDA moat, and AI inference exposure keep the growth story intact. Analyst Picks NVIDIA Over Every Other AI Chip Stock Right Now
- Neutral Sentiment: New coverage on NVIDIA’s PC chip push and Jensen Huang’s Computex comments helped highlight fresh product opportunities, but the market reaction appears mixed as investors weigh a longer-term revenue expansion story against near-term expectations. Nvidia's PC Chip Reveal Obscures a Bigger Catalyst for the Stock
- Negative Sentiment: Reports that Senator Elizabeth Warren invited Jensen Huang to testify on China chip sales add policy overhang, especially around export controls and NVIDIA’s business in China. Warren invites Nvidia CEO Jensen Huang to Senate hearing on China AI chip sales
- Negative Sentiment: Recent insider selling, including a large share sale by Director Mark A. Stevens, may be weighing on sentiment at the margin even though it does not change NVIDIA’s core fundamentals. NVIDIA insider trading filing
Institutional Inflows and Outflows
A number of institutional investors and hedge funds have recently bought and sold shares of NVDA. Diversified Enterprises LLC increased its position in 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 period. Oak Ridge Investments LLC increased its position in NVIDIA by 2.2% in the 3rd quarter. Oak Ridge Investments LLC now owns 970,860 shares of the computer hardware maker's stock valued at $181,143,000 after acquiring an additional 20,559 shares during the period. PMG Family Office LLC acquired a new position in NVIDIA in the 3rd quarter valued at approximately $2,150,000. ASR Vermogensbeheer N.V. increased its position in NVIDIA by 1.8% in the 4th quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker's stock valued at $591,086,000 after acquiring an additional 54,877 shares during the period. Finally, Weaver Capital Management LLC increased its position in NVIDIA by 5.5% in the 4th quarter. Weaver Capital Management LLC now owns 85,216 shares of the computer hardware maker's stock valued at $15,893,000 after acquiring an additional 4,439 shares during the period. Institutional investors and hedge funds own 65.27% of the company's stock.
Analysts Set New Price Targets
NVDA has been the topic of a number of research analyst reports. HSBC reaffirmed a "buy" rating and issued a $325.00 target price (up from $295.00) on shares of NVIDIA in a report on Tuesday, May 19th. Cantor Fitzgerald reiterated an "overweight" rating and issued a $350.00 price target on shares of NVIDIA in a research note on Thursday, May 21st. Susquehanna reiterated a "positive" rating and issued a $275.00 price target (up from $250.00) on shares of NVIDIA in a research note on Tuesday, May 12th. Argus upped their price target on shares of NVIDIA from $220.00 to $270.00 and gave the company a "buy" rating in a research note on Thursday, May 21st. Finally, Royal Bank Of Canada set a $280.00 price target on shares of NVIDIA 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 company. Based on data from MarketBeat, NVIDIA has an average rating of "Buy" and a consensus target price of $305.38.
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About NVIDIA
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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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