Track market-moving stories before they get noisy

Nvidia (NVDA -2.94%) is highly unlikely to conduct a stock split in 2026, even after recently reaching a new all-time high. The leading chipmaker hasn't announced one, and its previous splits came when its share price was much higher.

It's usually not a good idea to wait for a company to split its stock before you invest. In Nvidia's case, you'd probably be waiting a very long time, and you'd be missing out on a quality company.

Image source: The Motley Fool.

Why an Nvidia stock split probably isn't happening in 2026 A few numbers make it clear why a stock split isn't on the horizon for Nvidia. The first is its share price. Companies usually split their stock to make it more affordable for retail investors. When Nvidia conducted its last stock split, a 10-for-1 split in 2024, it was trading at about $1,200. Before that, it conducted a 4-for-1 split in 2021 when it was trading at about $750.

Nvidia closed at $239 on Oct. 6. Its share price would need to be roughly three to five times larger to be in the same range as during its previous stock splits.

That brings us to the second important number: Nvidia's market cap of $5.8 trillion. If the company were to grow three times larger, it would have a market cap of more than $17 trillion. In all likelihood, Nvidia won't need to split its stock again for the rest of the decade.

Nvidia is set up well for continued growth One of the main reasons some investors are reluctant to buy Nvidia is its size. It already tops the list of the world's largest public companies, so there's the question of how much it can continue to grow from here.

But companies continue to spend heavily on artificial intelligence (AI), and Nvidia is reaping the benefits. It reported $96.2 billion in revenue in Q2 FY 2027, up 106% year over year, on an excellent gross margin of 75%. Most of that ($89 billion) is data center revenue, as Nvidia makes the most popular AI chips, including its Blackwell and Vera Rubin lines.

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Even after Nvidia's recent growth, it's reasonably valued for one of the top AI stocks. It trades at about 26 times forward earnings and has a forward price/earnings-to-growth (PEG) ratio of less than 0.3. A PEG ratio below 1 indicates a company may be undervalued, and Nvidia is well below that mark.

Nvidia is doing the opposite of a split, and that's good news for investors A stock split increases a company's number of shares without changing the value of your position or your ownership stake. If a company trades at $500 and carries out a 5-for-1 split, each $500 share becomes five new $100 shares.

Nvidia, on the other hand, is buying back shares. On Sept. 28, the company announced that its board of directors authorized a $150 billion increase to its share repurchase program, increasing the program total to $235 billion. It expects to execute the total remaining through its fiscal 2028, essentially the next five quarters and change.

Buybacks are generally better for investors than stock splits because they reduce the number of outstanding shares. Each share has a larger ownership stake, and earnings per share (EPS) rise. The fact that Nvidia's board authorized a $150 billion increase suggests management considers the stock undervalued, and it's a large commitment to return capital to shareholders.

Nvidia's value isn't about the share price The real value of Nvidia is its crucial role in the AI build-out. Tech companies are investing in AI infrastructure, with the four largest hyperscalers (Alphabet, Amazon, Meta Platforms, and Microsoft) reporting over $300 billion of capital expenditures in the first half of 2026, according to research by The Motley Fool. Even with increased competition from Advanced Micro Devices and custom chipmakers, Nvidia still has an estimated 75% share of the AI accelerator market.

There are valid concerns about Nvidia. My primary worry is that it's heavily dependent on AI spending, and if companies slow down that spending, Nvidia's performance would suffer.

However, given how AI is progressing and its role as a potentially transformative technology, I expect the AI build-out to continue. If you're bullish on AI, then Nvidia is still worth considering as an investment, especially considering its growth and affordable valuation.

Few companies have been bigger beneficiaries of the massive artificial intelligence data center build-out than Nvidia (NVDA -2.98%). The company's graphics processing units (GPUs) are essential infrastructure for AI training and inference. That's led its data center sales to soar from $11 billion in fiscal 2022 to a $356 billion run rate as of its most recent quarter. As Nvidia is a relatively capital-light business, that's resulted in a tremendous amount of free cash flow.

Nvidia is already returning a lot of that cash to shareholders through dividends and buybacks. But the board just authorized the largest share repurchase plan in history, adding $150 billion to Nvidia's remaining authorization. Management now has $235 billion in total buyback authorizations, and it plans to deploy the full amount before the end of January 2028.

The question for investors is: Does that make the stock a buy?

Image source: The Motley Fool.

A big increase in capital returns is coming Nvidia is growing fast, but its capital returns are growing even faster.

The chipmaker's revenue climbed 106% last quarter, and both gross and operating margins expanded year over year, resulting in net income climbing 126%. Despite ramping up its research and development spending, the company continues to see incredible operating leverage, with operating expenses expected to fall to less than 10% of revenue next quarter.

Meanwhile, management announced a massive dividend increase with its first-quarter earnings report, raising the payout from $0.01 per quarter to $0.25 per quarter. That's about $24 billion in total dividend payments annually. Overall, the company returned $26 billion to shareholders last quarter through dividends and buybacks. That's up from $10 billion a year ago.

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At the start of fiscal 2027, management intended to return 50% of free cash flow to shareholders. So far, it's exceeding that level, with $46 billion returned through the first half of fiscal 2027 out of nearly $70 billion in free cash flow. During the earnings call, CFO Colette Kress said the higher capital return rate will be the norm: "We intend to increase and return excess free cash flow net of strategic uses."

Free cash flow could grow significantly next year. Management is already providing a fiscal 2028 outlook of 70% revenue growth. It should be able to produce very high free cash flow conversion from that growth, based on the operating leverage it continues to demonstrate.

As such, total buybacks could grow well above 70% next year, driven by strong free cash flow growth and plans to return a higher percentage of it. Based on the remaining $235 billion authorization for just over five quarters, quarterly repurchases will need to more than double next year for it to exhaust the full amount. Considering Nvidia's finances, that seems well within reason.

Is the massive share repurchase a smart idea? There's no doubt Nvidia is sitting on a massive amount of cash thanks to booming AI spending. Management has a very good problem on its hands. It needs to determine the best way to allocate that capital. Nvidia is a relatively capital-light business because it outsources the most capital-intensive part of the semiconductor business -- manufacturing. It doesn't have many ways to redeploy capital into the business.

It can build new ancillary businesses, acquire other businesses, make strategic minority investments, or return capital to shareholders. It's worth noting that these options aren't mutually exclusive, and management's task is to find the best use of capital for each incremental dollar. So, it can use some cash for acquisitions while returning a bunch to shareholders, too.

That's exactly what Nvidia's doing. "Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders," CEO Jensen Huang wrote in the press release announcing the new repurchase authorization. "This authorization reflects our confidence in the long-term opportunity ahead."

With such large amounts of free cash flow, Nvidia cannot reasonably deploy that much to grow the business. The most tax-efficient way to return capital to shareholders is through share repurchases, but that also relies on the stock trading at or below its intrinsic value. As Warren Buffett cautions, "All stock repurchases should be price-dependent. What is sensible at a discount to business-value becomes stupid if done at a premium." If not, a dividend could be a better option to return capital, letting shareholders determine the next best investment available.

If you're a shareholder in Nvidia at today's price, the new $150 billion repurchase authorization probably seems like a great way to return capital to shareholders. If you've continued to sit on the sidelines and believe Nvidia stock is overvalued, the new repurchase plans shouldn't change that opinion. In fact, it probably makes the investment look less attractive right now, but it could turn positive if the stock experiences a major price pullback.

Kirtland Hills Capital Management LLC boosted its position in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 4.9% during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 52,093 shares of the computer hardware maker’s stock after acquiring an additional 2,454 shares during the period. NVIDIA makes up approximately 3.0% of Kirtland Hills Capital Management LLC’s holdings, making the stock its 4th largest holding. Kirtland Hills Capital Management LLC’s holdings in NVIDIA were worth $10,423,000 at the end of the most recent reporting period.

Other large investors have also recently added to or reduced their stakes in the company. Bank of America Corp DE increased its position in shares of NVIDIA by 2.1% during the first quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker’s stock valued at $33,345,453,000 after purchasing an additional 4,019,505 shares during the period. Invesco Ltd. lifted its position in NVIDIA by 0.3% in the fourth quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker’s stock worth $26,714,167,000 after purchasing an additional 446,178 shares during the period. J. Stern & Co. LLP boosted its stake in NVIDIA by 13,709.1% during the fourth quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock worth $23,454,297,000 after buying an additional 124,849,603 shares in the last quarter. Amundi boosted its stake in NVIDIA by 10.4% during the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after buying an additional 12,575,177 shares in the last quarter. Finally, Deutsche Bank AG increased its holdings in NVIDIA by 2.3% in the 2nd quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker’s stock valued at $18,399,108,000 after buying an additional 2,045,101 shares during the period. Institutional investors and hedge funds own 65.27% of the company’s stock.

More NVIDIA News Here are the key news stories impacting NVIDIA this week:

Positive Sentiment: SpaceX may become a major new customer. SpaceX is reportedly seeking approximately $40 billion in debt financing—potentially including bank loans and investment-grade bonds—to purchase NVIDIA GPUs for its AI infrastructure. The proposed transaction would reinforce demand for NVIDIA’s chips, although the debt-funded nature of the purchase raises questions about customer financing risk. Apollo, banks in talks to finance SpaceX’s $40 billion Nvidia GPU purchase Positive Sentiment: NVIDIA is expanding beyond data centers into PCs and edge AI. Microsoft unveiled the $2,599 Surface Laptop Ultra with an NVIDIA AI chip, while ASUS and other manufacturers began offering RTX Spark-powered systems for local AI workloads. This could broaden NVIDIA’s addressable market and create a new consumer and enterprise revenue stream. Microsoft to sell Surface Laptop Ultra containing Nvidia AI chip Positive Sentiment: AI infrastructure adoption remains widespread. NVIDIA-backed Lambda is reportedly targeting up to $4 billion in additional funding ahead of a planned IPO, while robotics, sovereign-AI and cloud-computing companies continue announcing deployments using NVIDIA platforms. These developments support the company’s ecosystem and long-term demand outlook. Nvidia-backed Lambda targets $4 billion raise Positive Sentiment: Analyst sentiment remains bullish. Morgan Stanley raised its price target, and consensus estimates cited by analysts imply additional upside. NVIDIA’s prior quarterly earnings beat and more-than-doubling revenue growth continue to support the bullish case. Neutral Sentiment: Market conditions are mixed. Rising oil prices tied to renewed Strait of Hormuz tensions pressured broader equities, while investors also remained focused on interest rates and Federal Reserve minutes. Negative Sentiment: Valuation and concentration risks are becoming more prominent. NVIDIA is approaching a $6 trillion market capitalization after a powerful rally, increasing the potential for profit-taking. Michael Burry has reportedly shifted to longer-dated put options on NVIDIA, citing the risk of an eventual AI downturn. Negative Sentiment: Trade and execution risks could weigh on the shares. Fresh tariff threats and concerns about margin compression, inventory levels and the sustainability of debt-financed AI spending are tempering enthusiasm. Investors may also be reluctant to chase the stock near record highs without evidence that earnings growth can continue to exceed elevated expectations. NVIDIA Stock Down 0.8% Shares of NASDAQ:NVDA opened at $237.36 on Thursday. The company’s fifty day moving average is $221.38 and its 200-day moving average is $208.88. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. NVIDIA Corporation has a 52 week low of $164.27 and a 52 week high of $243.37. The company has a market capitalization of $5.72 trillion, a PE ratio of 30.01, a P/E/G ratio of 1.85 and a beta of 2.22. NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business had revenue of $96.22 billion during the quarter, compared to analysts’ expectations of $92.27 billion. During the same quarter last year, the company posted $1.05 EPS. The firm’s revenue for the quarter was up 105.9% on a year-over-year basis. Equities research analysts predict that NVIDIA Corporation will post 9.25 earnings per share for the current fiscal year.

NVIDIA announced that its Board of Directors has authorized a share buyback plan on Monday, September 28th that allows the company to repurchase $150.00 billion in shares. This repurchase authorization allows the computer hardware maker to purchase up to 2.8% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board believes its stock is undervalued.

NVIDIA Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were paid a $0.25 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.4%. NVIDIA’s payout ratio is 12.64%.

Insider Activity In other news, Director Mark Stevens sold 622,239 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the transaction, the director directly owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. The trade was a 21.03% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Timothy Teter sold 30,460 shares of the stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $222.80, for a total value of $6,786,488.00. Following the sale, the executive vice president owned 2,687,660 shares in the company, valued at approximately $598,810,648. This trade represents a 1.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 1,766,118 shares of company stock worth $399,450,353. Insiders own 3.94% of the company’s stock.

Analyst Upgrades and Downgrades A number of equities analysts have recently issued reports on the stock. Daiwa Securities Group dropped their price objective on shares of NVIDIA from $255.00 to $245.00 and set an “outperform” rating for the company in a research note on Thursday, September 17th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of NVIDIA in a research report on Monday, August 31st. BNP Paribas Exane reissued an “outperform” rating and issued a $345.00 target price on shares of NVIDIA in a research note on Monday. Morgan Stanley set a $230.00 price target on shares of NVIDIA in a research report on Friday, October 2nd. Finally, JPMorgan Chase & Co. raised their price target on shares of NVIDIA from $280.00 to $320.00 and gave the stock an “overweight” rating in a research note on Thursday, August 27th. Four analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, NVIDIA presently has an average rating of “Buy” and an average price target of $321.89.

View Our Latest Report on NVDA

NVIDIA Profile (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

Featured Articles Five stocks we like better than NVIDIA Skydance Just Became a Media Giant—With an $80 Billion Debt Load Could Velo3D Be the Next Defense Buyout Target? Penguin Solutions Is Soaring as AI Memory Demand Explodes Alphabet’s Chart Is Coiling—and the Fundamentals May Be Ready to Back It Up Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).

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The heat is on for artificial intelligence (AI) companies. After mind-blowing growth over the past few years, some AI developers have been sounding the alarm over the technology's risks. Anthropic, whose CEO, Dario Amodei, has moved to the forefront of the initiative to slow things down, postponed its initial public offering (IPO) from the initially expected September or October to November, and many executives across the AI space have joined in the call for greater care in model development.

AI stocks as a group fell after Amodei's note went viral in mid-September, although that seems to have been a short-term reaction. More pressing is how a slowdown in AI model development would impact hardware companies like Nvidia (NVDA -0.53%). Here's how CEO Jensen Huang reacted, and what investors can expect for Nvidia.

Doomsday narrative and AI growth The public's fears over the risks AI poses intensified to a new level in September when an Anthropic AI researcher quit the company and publicized the reason why on social media, claiming that at its current pace, he believed that unchecked AI development was putting humanity at risk of extinction within the next decade.

Nvidia CEO Jensen Huang. Image source: Getty Images.

While AI leaders like Amodei, OpenAI's Sam Altman, and Elon Musk chimed in to agree that there were real dangers, Huang took a completely different spin.

"2030 is not going to be the end of the world," he told CBS News in an interview. "There is 0% chance that's going to be the end of the world. Scaring people is unnecessary. It is irresponsible."

While that kind of response seems to argue in favor of AI developers and hyperscalers continuing along a build-out path that would benefit Nvidia, Huang rejected the notion that his opinion might be biased by that.

"Our company's success is directly connected to the safe deployment of products and services," he noted. "If we don't continue to do that, our value would be diminished."

How Nvidia fits in Nvidia has been arguably the most important and successful player in the AI revolution. It has expanded from a relatively obscure chip designer into the most valuable company in the world, and the only one worth more than $5 trillion.

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Its 11-fold growth over the past five years has come from the unrelenting demand for its best-in-class graphics processing units (GPUs), the chips that provide the parallel-processing power required to drive generative AI. Revenue hasn't just increased at high rates, it has recently accelerated again, which is a feat considering the much larger base it's now comparing that growth to. Even more, it has developed complete computing platforms for training and inference, filling data centers with high-level technology. It's clear that a slowdown in AI development would damage Nvidia's growth prospects.

Nvidia stock fell after the warnings a few weeks ago, but it has bounced back and hit a new high this week. Nvidia hasn't joined the chorus calling for an AI development slowdown, nor has it changed its guidance, and Wall Street expects a 91% year-over-year increase in revenue in the current quarter. The market seems to be on board with Huang, and that's crucial for Nvidia's growth story.

Nvidia (NVDA -0.74%) shares have risen by 29% in 2026 (as of Oct. 5). This continues a monster winning streak that has seen the shares increase by more than 1,110% over the past five years, catapulting the business to a $5.8 trillion market capitalization.

There's one obvious reason this artificial intelligence (AI) stock is a screaming buy in October. There's also one reason to be wary.

Image source: The Motley Fool.

Valuation is one reason why Nvidia looks like a no-brainer buying opportunity this month. Shares currently trade at a forward price-to-earnings ratio of 24.9. This is what the market is asking you to pay for a dominant business that posted year-over-year revenue and net income growth of 106% and 126%, respectively, in the most recent fiscal quarter (Q2 2027 ended July 26).

The ongoing AI build-out, measured by the five big hyperscalers on track to easily exceed $1 trillion in capital expenditures in 2027, is unprecedented. Nvidia has gained the most financially from this surge in spending.

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It's also wise for investors to be a bit cautious, however. No one has the slightest idea about how long this AI build-out boom will last. Durability is the biggest unknown variable. If the hyperscalers don't see adequate returns on invested capital, the impact will be felt up the value chain. Demand for Nvidia's graphics processing units would be under pressure, which would adversely affect the stock price.

The market isn't forgiving when it comes to decelerating growth trends.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Evolve Private Wealth LLC trimmed its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 12.8% in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 246,013 shares of the computer hardware maker’s stock after selling 36,220 shares during the quarter. NVIDIA comprises about 3.0% of Evolve Private Wealth LLC’s holdings, making the stock its 4th largest position. Evolve Private Wealth LLC’s holdings in NVIDIA were worth $49,226,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently modified their holdings of the business. W1M Asset Management Ltd boosted its position in shares of NVIDIA by 14.9% during the 2nd quarter. W1M Asset Management Ltd now owns 32,118 shares of the computer hardware maker’s stock valued at $6,416,000 after acquiring an additional 4,176 shares during the last quarter. Madison Wealth Partners Inc increased its position in shares of NVIDIA by 14.9% in the second quarter. Madison Wealth Partners Inc now owns 30,492 shares of the computer hardware maker’s stock worth $6,101,000 after purchasing an additional 3,960 shares during the last quarter. Krane Financial Solutions LLC raised its stake in NVIDIA by 9.0% in the second quarter. Krane Financial Solutions LLC now owns 1,869 shares of the computer hardware maker’s stock valued at $374,000 after purchasing an additional 154 shares in the last quarter. Varma Mutual Pension Insurance Co raised its stake in NVIDIA by 0.3% in the second quarter. Varma Mutual Pension Insurance Co now owns 3,920,566 shares of the computer hardware maker’s stock valued at $784,466,000 after purchasing an additional 12,300 shares in the last quarter. Finally, George Kaiser Family Foundation lifted its position in NVIDIA by 246.0% during the second quarter. George Kaiser Family Foundation now owns 12,204 shares of the computer hardware maker’s stock valued at $2,442,000 after purchasing an additional 8,677 shares during the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.

Wall Street Analyst Weigh In A number of equities analysts have commented on the stock. Sanford C. Bernstein reissued a “buy” rating on shares of NVIDIA in a research note on Monday, September 21st. Needham & Company LLC reiterated a “buy” rating and issued a $300.00 target price on shares of NVIDIA in a research report on Friday, September 4th. The Goldman Sachs Group reissued a “buy” rating on shares of NVIDIA in a research note on Thursday, September 10th. Royal Bank Of Canada raised their price target on NVIDIA from $300.00 to $330.00 and gave the company an “outperform” rating in a research report on Thursday, August 27th. Finally, Evercore set a $465.00 price target on NVIDIA and gave the stock an “outperform” rating in a research note on Thursday, August 27th. Four analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, NVIDIA has an average rating of “Buy” and a consensus price target of $321.89.

Check Out Our Latest Analysis on NVIDIA NVIDIA Price Performance Shares of NASDAQ:NVDA opened at $237.36 on Thursday. The stock has a market cap of $5.72 trillion, a PE ratio of 30.01, a PEG ratio of 1.85 and a beta of 2.22. The company’s fifty day moving average is $221.38 and its 200 day moving average is $208.88. NVIDIA Corporation has a 52 week low of $164.27 and a 52 week high of $243.37. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. During the same period in the prior year, the business posted $1.05 earnings per share. The company’s revenue was up 105.9% on a year-over-year basis. Research analysts anticipate that NVIDIA Corporation will post 9.25 earnings per share for the current year.

NVIDIA Announces Dividend The business also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were issued a dividend of $0.25 per share. The ex-dividend date was Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.4%. NVIDIA’s dividend payout ratio is currently 12.64%.

NVIDIA announced that its Board of Directors has authorized a stock buyback plan on Monday, September 28th that permits the company to buyback $150.00 billion in shares. This buyback authorization permits the computer hardware maker to buy up to 2.8% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s leadership believes its stock is undervalued.

More NVIDIA News Here are the key news stories impacting NVIDIA this week:

Positive Sentiment: SpaceX may become a major new customer. SpaceX is reportedly seeking approximately $40 billion in debt financing—potentially including bank loans and investment-grade bonds—to purchase NVIDIA GPUs for its AI infrastructure. The proposed transaction would reinforce demand for NVIDIA’s chips, although the debt-funded nature of the purchase raises questions about customer financing risk. Apollo, banks in talks to finance SpaceX’s $40 billion Nvidia GPU purchase Positive Sentiment: NVIDIA is expanding beyond data centers into PCs and edge AI. Microsoft unveiled the $2,599 Surface Laptop Ultra with an NVIDIA AI chip, while ASUS and other manufacturers began offering RTX Spark-powered systems for local AI workloads. This could broaden NVIDIA’s addressable market and create a new consumer and enterprise revenue stream. Microsoft to sell Surface Laptop Ultra containing Nvidia AI chip Positive Sentiment: AI infrastructure adoption remains widespread. NVIDIA-backed Lambda is reportedly targeting up to $4 billion in additional funding ahead of a planned IPO, while robotics, sovereign-AI and cloud-computing companies continue announcing deployments using NVIDIA platforms. These developments support the company’s ecosystem and long-term demand outlook. Nvidia-backed Lambda targets $4 billion raise Positive Sentiment: Analyst sentiment remains bullish. Morgan Stanley raised its price target, and consensus estimates cited by analysts imply additional upside. NVIDIA’s prior quarterly earnings beat and more-than-doubling revenue growth continue to support the bullish case. Neutral Sentiment: Market conditions are mixed. Rising oil prices tied to renewed Strait of Hormuz tensions pressured broader equities, while investors also remained focused on interest rates and Federal Reserve minutes. Negative Sentiment: Valuation and concentration risks are becoming more prominent. NVIDIA is approaching a $6 trillion market capitalization after a powerful rally, increasing the potential for profit-taking. Michael Burry has reportedly shifted to longer-dated put options on NVIDIA, citing the risk of an eventual AI downturn. Negative Sentiment: Trade and execution risks could weigh on the shares. Fresh tariff threats and concerns about margin compression, inventory levels and the sustainability of debt-financed AI spending are tempering enthusiasm. Investors may also be reluctant to chase the stock near record highs without evidence that earnings growth can continue to exceed elevated expectations. Insider Activity at NVIDIA In related news, EVP Timothy Teter sold 30,460 shares of the firm’s stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at $598,810,648. This trade represents a 1.12% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of NVIDIA stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the transaction, the director directly owned 2,336,531 shares in the company, valued at $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 1,766,118 shares of company stock worth $399,450,353 in the last ninety days. 3.94% of the stock is owned by company insiders.

NVIDIA Company Profile (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

Further Reading Five stocks we like better than NVIDIA Skydance Just Became a Media Giant—With an $80 Billion Debt Load Could Velo3D Be the Next Defense Buyout Target? Penguin Solutions Is Soaring as AI Memory Demand Explodes Alphabet’s Chart Is Coiling—and the Fundamentals May Be Ready to Back It Up Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).

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Foyston Gordon & Payne Inc purchased a new position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm purchased 47,475 shares of the computer hardware maker’s stock, valued at approximately $9,581,000. NVIDIA makes up 2.0% of Foyston Gordon & Payne Inc’s investment portfolio, making the stock its 19th biggest position.

Several other institutional investors and hedge funds have also recently bought and sold shares of the stock. LightSquare Wealth Management LLC raised its stake in NVIDIA by 0.3% during the 2nd quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker’s stock valued at $3,741,000 after purchasing an additional 49 shares during the period. Defender Capital LLC. lifted its holdings in shares of NVIDIA by 0.7% in the second quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker’s stock valued at $1,507,000 after purchasing an additional 50 shares in the last quarter. Kooman & Associates boosted its position in shares of NVIDIA by 0.6% in the second quarter. Kooman & Associates now owns 8,464 shares of the computer hardware maker’s stock worth $1,694,000 after buying an additional 50 shares during the period. Roof Eidam Maycock Peralta LLC boosted its position in shares of NVIDIA by 0.3% in the second quarter. Roof Eidam Maycock Peralta LLC now owns 18,827 shares of the computer hardware maker’s stock worth $3,767,000 after buying an additional 50 shares during the period. Finally, Persium Advisors LLC grew its holdings in shares of NVIDIA by 3.5% during the second quarter. Persium Advisors LLC now owns 1,466 shares of the computer hardware maker’s stock valued at $293,000 after buying an additional 50 shares in the last quarter. Institutional investors and hedge funds own 65.27% of the company’s stock.

Wall Street Analyst Weigh In NVDA has been the subject of several research analyst reports. Melius Research set a $420.00 price objective on NVIDIA in a research note on Thursday, August 27th. KGI Securities lifted their target price on NVIDIA from $335.00 to $345.00 in a research note on Thursday, August 27th. Daiwa Securities Group dropped their target price on NVIDIA from $255.00 to $245.00 and set an “outperform” rating on the stock in a report on Thursday, September 17th. Weiss Ratings reissued a “buy (b)” rating on shares of NVIDIA in a research report on Friday, October 2nd. Finally, Oppenheimer set a $315.00 price target on shares of NVIDIA and gave the stock an “outperform” rating in a report on Thursday, August 27th. Four equities research analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $321.89.

Check Out Our Latest Stock Analysis on NVIDIA NVIDIA Trading Down 0.8% NASDAQ:NVDA opened at $237.36 on Thursday. The company has a market capitalization of $5.72 trillion, a P/E ratio of 30.01, a P/E/G ratio of 1.85 and a beta of 2.22. The stock’s 50 day moving average price is $221.38 and its 200 day moving average price is $208.88. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. NVIDIA Corporation has a 52 week low of $164.27 and a 52 week high of $243.37.

NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. During the same period in the previous year, the firm posted $1.05 earnings per share. The company’s revenue for the quarter was up 105.9% compared to the same quarter last year. On average, research analysts forecast that NVIDIA Corporation will post 9.25 EPS for the current fiscal year.

NVIDIA Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were issued a $0.25 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. NVIDIA’s dividend payout ratio is currently 12.64%.

NVIDIA announced that its Board of Directors has initiated a share repurchase program on Monday, September 28th that authorizes the company to buyback $150.00 billion in shares. This buyback authorization authorizes the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

More NVIDIA News Here are the key news stories impacting NVIDIA this week:

Positive Sentiment: SpaceX may become a major new customer. SpaceX is reportedly seeking approximately $40 billion in debt financing—potentially including bank loans and investment-grade bonds—to purchase NVIDIA GPUs for its AI infrastructure. The proposed transaction would reinforce demand for NVIDIA’s chips, although the debt-funded nature of the purchase raises questions about customer financing risk. Apollo, banks in talks to finance SpaceX’s $40 billion Nvidia GPU purchase Positive Sentiment: NVIDIA is expanding beyond data centers into PCs and edge AI. Microsoft unveiled the $2,599 Surface Laptop Ultra with an NVIDIA AI chip, while ASUS and other manufacturers began offering RTX Spark-powered systems for local AI workloads. This could broaden NVIDIA’s addressable market and create a new consumer and enterprise revenue stream. Microsoft to sell Surface Laptop Ultra containing Nvidia AI chip Positive Sentiment: AI infrastructure adoption remains widespread. NVIDIA-backed Lambda is reportedly targeting up to $4 billion in additional funding ahead of a planned IPO, while robotics, sovereign-AI and cloud-computing companies continue announcing deployments using NVIDIA platforms. These developments support the company’s ecosystem and long-term demand outlook. Nvidia-backed Lambda targets $4 billion raise Positive Sentiment: Analyst sentiment remains bullish. Morgan Stanley raised its price target, and consensus estimates cited by analysts imply additional upside. NVIDIA’s prior quarterly earnings beat and more-than-doubling revenue growth continue to support the bullish case. Neutral Sentiment: Market conditions are mixed. Rising oil prices tied to renewed Strait of Hormuz tensions pressured broader equities, while investors also remained focused on interest rates and Federal Reserve minutes. Negative Sentiment: Valuation and concentration risks are becoming more prominent. NVIDIA is approaching a $6 trillion market capitalization after a powerful rally, increasing the potential for profit-taking. Michael Burry has reportedly shifted to longer-dated put options on NVIDIA, citing the risk of an eventual AI downturn. Negative Sentiment: Trade and execution risks could weigh on the shares. Fresh tariff threats and concerns about margin compression, inventory levels and the sustainability of debt-financed AI spending are tempering enthusiasm. Investors may also be reluctant to chase the stock near record highs without evidence that earnings growth can continue to exceed elevated expectations. Insiders Place Their Bets In other NVIDIA news, Director Mark A. Stevens sold 622,239 shares of the business’s stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the sale, the director owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Colette Kress sold 34,918 shares of the stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $219.05, for a total value of $7,648,787.90. Following the transaction, the chief financial officer directly owned 765,103 shares in the company, valued at approximately $167,595,812.15. This represents a 4.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,766,118 shares of company stock valued at $399,450,353 over the last three months. 3.94% of the stock is currently owned by insiders.

About NVIDIA (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

Read More Five stocks we like better than NVIDIA Skydance Just Became a Media Giant—With an $80 Billion Debt Load Could Velo3D Be the Next Defense Buyout Target? Penguin Solutions Is Soaring as AI Memory Demand Explodes Alphabet’s Chart Is Coiling—and the Fundamentals May Be Ready to Back It Up

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Nvidia (NVDA -0.74%) has been one of the most exciting stocks to own since the AI arms race kicked off in early 2023. If you had invested $5,000 in Nvidia at that time, your position would now be worth $80,000. While Nvidia is too large today to repeat that type of 16x performance again, I do think it has plenty of upside.

Nvidia remains in a prime position to keep profiting from the massive AI build-out, and that boom is expected to last at least through 2030. This leaves plenty of time for Nvidia to deliver jaw-dropping returns, so investors shouldn't be shy about investing $5,000 in the stock right now.

Image source: Nvidia.

The AI build-out is only going to intensify While various industries have been investing heavily in AI capabilities, the world has nowhere near the computing power required to undergird an AI-first economy. Bringing that much compute online will require years of massive build-outs, and Nvidia is one of the primary beneficiaries of this trend.

The company's primary offerings are graphics processing units (GPUs) and other hardware and software to support their use. GPUs are powerful parallel processors that can handle a wide array of computationally heavy workloads, making them well-suited to AI operations. Nvidia's offerings have become the industry standard against which rivals' products are measured. That puts it in a powerful position.

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The pace of the AI build-out is expected to intensify. Nvidia estimates that global data center expenditures will reach $3 trillion to $4 trillion annually by 2030.

For reference, Nvidia expects the big five AI hyperscalers to spend nearly $800 billion on AI data center capital expenditures this year. Add in other players around the globe, and the total could easily exceed $1 trillion. Yet the amount of money being spent on AI infrastructure could triple or quadruple by 2030.

That's not all. A lot of money being spent in this area right now is going toward general construction and land acquisition costs. Those categories won't account for as large a slice of the pie in the future as they do now, so Nvidia may be able to expand the share of spending it captures.

So, based on Nvidia management's longer-term guidance, it could quadruple its revenue by 2030. But would that directly correlate to stock price appreciation?

Nvidia's stock is cheap Some competitors in the AI arena already have a ton of growth priced into their stocks. This will eat into their future returns, as they need to grow their businesses just to justify the valuations the market has already established. For Nvidia, that won't be necessary.

The stock trades for nearly 30 times earnings, which is about what other big tech stocks trade at.

NVDA PE Ratio data by YCharts.

This figure has declined significantly over the past year, as the market hasn't sustained Nvidia's premium valuation. Because Nvidia is valued at a reasonable level, I think that its revenue growth will correlate directly to its stock price. So, if its top line quadruples as expected, that would turn a $5,000 investment into $20,000 by 2030.

Nvidia may not be able to replicate the returns it has produced over the past few years, but a 4x gain over four years is still a great return on investment. The AI build-out isn't slowing down, and Nvidia is one of the top stocks poised to benefit.

Nvidia (NVDA -0.74%) was once only known as the leading provider of graphics processing units (GPUs) for the video game industry. But it leaned on its strengths, helping other industries find uses for its GPUs over the years. And in recent years, the leads it gained in developing parallel processors and attracting developers to create code for them on its CUDA platform positioned it to become the top provider by far of accelerator chips for the artificial intelligence (AI) infrastructure build-out. The gains that its long-term investors have captured thanks to that multitrillion-dollar spending spree are truly incredible.

If you'd invested $1,000 in this AI stock 10 years ago, here's how much your stake would be worth today.

Image source: The Motley Fool.

Nvidia shares have generated a total return of 13,930% in the last 10 years (as of Oct. 6). This phenomenal gain would've turned a starting $1,000 investment into more than $140,000 today. The momentum has continued this year, with the stock up 28% in 2026.

Investors would struggle to find any stocks that have performed better since October 2016. Getting into this chipmaker ahead of a generational technological secular trend paid off for those who did so and held on.

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Nvidia is arguably the most important business in the world right now, as it sits at the center of the AI boom. Revenue growth, driven by insatiable demand for its data center graphics processing units, has been a key catalyst benefiting investors.

Profits have been more impressive, though. Diluted earnings per share (EPS) climbed 128% year over year in its fiscal 2027 Q2 (which ended July 26). The consensus view among sell-side analysts following Nvidia is that its EPS will rise at a compound annual rate of 65% from fiscal 2026 to fiscal 2029 as its large customers keep spending to expand their compute capacity.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Nvidia (NASDAQ: NVDA) could be poised for another leg higher after breaking above a key technical resistance level, according to market analyst Ali Martinez.

In an X post on October 6, Martinez noted that NVDA shares are breaking out of a multi-month consolidation pattern that had capped gains for much of the second half of 2026.

The analyst identified the $238 area as a critical resistance zone. With the stock now trading at $239, Martinez projected a move toward approximately $280, implying upside of about 19% from the breakout point.

NVDA stock price analysis. Source: Ali Martinez The setup suggests Nvidia may be entering a new bullish phase, with the former resistance zone potentially turning into support.

Nvidia stock backed by fundamentals The technical breakout comes as Nvidia continues to benefit from strong demand for artificial intelligence infrastructure.

Much of the optimism stems from the technology company’s August earnings report, which reinforced its dominance in the AI sector.

For the second quarter of fiscal 2027, reported in August, Nvidia posted revenue of $96.2 billion, up 106% year-over-year and 18% sequentially, beating Wall Street expectations by about 4%.

Data Center revenue, Nvidia’s main growth driver, surged 117% year-over-year to $89 billion, accounting for about 92% of total sales, driven by continued AI infrastructure spending from hyperscalers, enterprises, and AI cloud providers.

The company reported GAAP earnings per share of $2.46, maintained a 75% gross margin, and generated approximately $21.3 billion in quarterly free cash flow. 

Management said AI has reached an inflection point, with computing power increasingly translating into revenue-generating applications, while Blackwell Ultra and Vera Rubin are expected to support future growth.

At the same time, the semiconductor giant forecast third-quarter revenue of about $108 billion, above Wall Street estimates, despite assuming no Data Center compute revenue from China. It also projected roughly 70% revenue growth for fiscal 2028, well ahead of pre-earnings expectations.

NVDA buyback plan  Adding to the bullish sentiment, Nvidia expanded its share repurchase authorization by a record $150 billion in September, raising total remaining buyback capacity to about $235 billion through fiscal 2028. The move was widely viewed as a strong signal of management’s confidence in the company’s long-term growth prospects.

Analysts remain bullish on Nvidia, citing its leadership across GPUs, networking, systems, and CUDA software, alongside strong AI demand from hyperscalers and enterprises. Expectations for sustained growth are also supported by ongoing supply constraints in advanced AI hardware.

Recent reports suggest SpaceX is exploring a roughly $40 billion financing package to purchase Nvidia chips, underscoring the scale of AI infrastructure demand.

Despite the bullish outlook, investors continue to monitor risks including rising memory costs, margin pressure, competition from AMD and custom AI chips, and the possibility of slower AI spending growth as customers seek greater returns on their investments.

Featured image via Shutterstock

Morgan Stanley just raised its NVIDIA target as the stock closes in on all-time highs, but margin compression and a $50 billion financing controversy raise real questions about how much runway this rally has left.

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Shares of NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) closed Friday at $233.95. That is within 1.7% of its 52-week high of $237.88, and the stock was indicated at $235.28 before the open.

The 24/7 Wall St. price target stands at $272.75 over the next 12 months, which implies 16.59% upside. The stock earns a buy rating with high confidence from our model.

24/7 Wall St. Price Target Summary Metric Value Current Price $233.95 Price Target from 24/7 Wall St. $272.75 Upside/Downside 16.59% Recommendation BUY Confidence Level 90% Shares traded near their 52-week high last week. Morgan Stanley (NYSE:MS) analyst Joseph Moore holds an Overweight rating. The key question now is how long supply limits support the cycle.

Record Highs Follow a $96 Billion Quarter NVIDIA is up 4.54% over the past week, 4.97% over the past month and 26.45% year to date. The stock sits 42.7% above its 52-week low.

In the fiscal second quarter, revenue reached $96.22 billion against estimates of $92.07 billion. Non-GAAP EPS of $2.22 beat the $2.09 consensus. Data Center revenue rose 117% to $89.02 billion, and third-quarter guidance calls for $108 billion.

Why Bulls See $318 and Beyond Management expects fiscal 2028 revenue to grow about 70% even with supply constraints. On the call, the company said “Our demand is much higher than that.” NVIDIA earns about $40 billion per gigawatt on Vera Rubin, compared with $25 billion on Blackwell.

The top five hyperscalers are expected to spend $1.3 trillion on capex in 2027. The consensus fiscal 2028 EPS estimate of $15.6951 has drawn 42 upward revisions and no cuts in 30 days. The average analyst target is $327.70, and our bull case points to $318.39.

Margin Compression and Vendor Financing Could Cap Gains Management expects gross margins to bottom at 71% to 72% in the fourth quarter as memory costs rise. Days sales outstanding rose to 60 days from 45.

NVIDIA has invested nearly $50 billion in leading AI labs, and management admitted “some will call this circular financing.” Guidance also assumes no China data center compute revenue.

Bulls have a response: price increases should raised fiscal 2028 margins to 72% to 73%, and NVIDIA computing capacity can be moved to other customers. The bear case sits at $235.18.

NVIDIA Trades Between Broadcom and AMD on Forward Earnings Company Forward P/E Quarterly Revenue Growth (YoY) NVIDIA 25x 105.9% AMD 40x 50.1% Broadcom 19x 85.5% TSMC 21x 36% Advanced Micro Devices (NASDAQ:AMD) competes directly with NVIDIA in GPUs but trades at a much higher forward multiple while growing revenue at less than half NVIDIA’s pace.

Broadcom (NASDAQ:AVGO) builds custom chips for the same hyperscalers at a cheaper multiple, reflecting market skepticism of AI silicon outside NVIDIA’s ecosystem.

Taiwan Semiconductor (NYSE:TSM) makes Blackwell and Rubin wafers. Compared with this group, NVIDIA’s premium appears justified, and our 18x forward input looks conservative.

Our Model Still Sees Room to Run The 24/7 Wall St. price target sits at $272.75 with a buy rating and high confidence. Supply-limited demand keeps driving earnings estimates higher.

The setup improves if Vera Rubin supply expands on schedule and weakens if memory costs push margins below guidance. Keep an eye on the November earnings report.

Looking further out, here is our model projects NVIDIA could trade, assuming current growth rates and market conditions hold.

Year Price Target from 24/7 Wall St. 2026 (12-month) $272.75 2027 $287.46 2028 $307.06 2029 $327.99 2030 $357.65 The projections rest on NVIDIA executing its annual architecture cycle. Faster AI capex buildout could driving results above this path; a consolidation phase could pull them below. All of that hyperscaler spending has to be powered, cooled, and connected by somebody other than the chipmakers, and we rounded up seven of those suppliers in a free report here.

Contact [email protected] for any questions or corrections.

Back in August, Nvidia (NVDA +0.14%) announced a partnership with six Wall Street asset managers to provide financing for AI infrastructure build-outs. The effort aims to provide up to $500 billion to companies that build data centers and install Nvidia's GPUs in them.

Here's the key to those deals, though: The GPUs themselves act as collateral on the loans. That means the value of the GPUs is one of the main considerations for lending decisions.

An extra $500 billion in easy-to-access capital would be a boon for companies that are heavily reliant on debt to build new data centers. Neocloud companies like CoreWeave (CRWV +4.96%) and Nebius (NBIS +7.44%) are highly leveraged, and making huge bets that the AI compute shortage will continue for some time. Nvidia, meanwhile, benefits from its customers having more capital in their hands to put toward the data center build-out.

But Nvidia is facing some major pushback from its financing partners on Wall Street, and it all centers around how much of their value its GPUs retain over time. The answer to that question could reverberate throughout the entire industry.

Image source: Nvidia.

A big mismatch between Nvidia and the banks At the center of the controversy is just how long an Nvidia GPU's useful life is. Nvidia says it could be a decade; Wall Street bankers say it's more like three to four years, according to a Reuters report.

Nvidia published a blog post in response to the Reuters article. At the center of its argument was the question of how hyperscalers have changed their depreciation schedules for server and networking equipment over the last few years. It showed that Alphabet, Microsoft, Amazon, and Meta Platforms have extended the depreciation life of their hardware from three or four years to five or six years.

Also working in Nvidia's favor are recent pricing changes from CoreWeave and Nebius. CoreWeave announced that it "continued to contract new compute capacity at higher prices," signing new customer contracts at an annualized rate of $40 million per megawatt in September. Nebius, meanwhile, just raised prices across the board for hourly compute rentals by 17% to 21% for various Nvidia GPUs, including four-year-old chips.

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Nonetheless, at the end of the day, the banks are the ones putting up the capital, so they hold all the cards. The challenge is that it's truly impossible to know yet whether the way AI data centers function has created a structural change in the useful life of an Nvidia GPU. It's just too early to tell. Whether the banks are right or not will have a huge impact on some of the most popular AI stocks in the market.

How it could impact the major AI stocks If the banks want better guarantees, Nvidia or its customers will have to provide them. The Reuters article indicates there are already tens of billions of dollars in loans in the pipeline with stronger guarantees than were originally outlined in Nvidia's August announcement. Those guarantees could come from Nvidia itself, which would require it to maintain capital reserves, or from the revenue streams of investment-grade technology companies such as Microsoft, Alphabet, Amazon, or Meta Platforms.

Nvidia is reportedly in talks with insurance companies to hand off some of the financing risk tied to these loans in case a borrower defaults and the value of the GPUs fails to cover the debt. That could add to the cost of Nvidia's financing plans, however. The coverage is specifically aimed at neocloud companies like CoreWeave and Nebius.

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It's important to note that if a neocloud defaults, it will likely be in part because the Nvidia GPUs powering its data centers aren't worth as much as originally anticipated. The counterargument to the fact that neoclouds are raising prices is that we're currently in the midst of a severe shortage of AI compute. That has pushed prices higher for what's essentially a commodity product. When the market reaches equilibrium, prices for compute will begin to decline.

In other words, today's higher prices aren't a reflection of the increased durability of Nvidia GPUs, but rather a reflection of AI developers' desperation to get their hands on any available compute.

The hyperscalers don't carry nearly as much risk, but if AI chips' useful lives prove shorter than expected, it will negatively impact their return on invested capital. The good news is that Amazon reports it will break even on its AI accelerator chips within three years, and Alphabet says its breakeven time is just two years.

These days, both hyperscalers are installing more of their own custom AI accelerators than Nvidia GPUs, and those application-specific chips have even shorter payback periods. While GPUs can still generate positive returns on investment, they might not be the massive returns currently projected.

Nvidia (NVDA +0.14%) set a new intraday all-time high on Tuesday at $243.37 per share.

Last Friday, the stock topped its previous record set on May 14, and has continued to climb from there, notching its fifth straight gain on Tuesday.

In recent days, Nvidia has been buoyed by positive macro news, including a cooler-than-expected PCE inflation report and a weak employment report, which both make future Fed rate hikes less likely. While there's been relatively little news out on Nvidia, the general news about AI remains overwhelmingly positive. Anthropic is headed toward an IPO next month that is expected to value the company at $2 trillion. Marvell just wowed investors at its Investor Day conference after raising its 2028 revenue outlook to $20 billion, indicating strong demand for chips, and SpaceX, its close partner, has gained on several recent achievements, including sending Starship into low Earth orbit for the first time, where it deployed Starlink satellites.

The rally helped push the S&P 500 and Nasdaq Composite to all-time highs as well. Nvidia remains the most valuable company in the world with a market cap of $5.8 trillion now.

However, the stock is volatile and has experienced multiple pullbacks even during its surge in the AI boom. Is the stock still a buy? Here's what investors need to know.

Image source: Nvidia.

Nvidia looks cheap compared to its peersNvidia now trades at a price-to-earnings ratio of 30, which is naturally more expensive than it's been in recent weeks, but also still a reasonable price compared to its peers and the S&P 500, which trades at a P/E ratio of 25, and is growing much more slowly than Nvidia.

Meanwhile, chip stock peers like AMD, Intel, and Broadcom, which have soared on AI tailwinds lately, are all significantly more expensive than Nvidia, trading at P/E ratios of 166, 103 (adjusted), and 48, respectively.

The difference between those stocks and Nvidia is that they have largely jumped on potential AI gains, while Nvidia has already delivered those results and is poised to continue delivering strong growth.

Currently, Wall Street expects revenue to jump 67% to $687 billion next year (fiscal 2028), with adjusted earnings per share of $15.80. Those numbers have trended higher, and they could continue to go up. Based on the 2028 EPS forecast, Nvidia is trading at just 15 times earnings, which is undoubtedly cheap.

Will the law of large numbers get in the way?Perhaps, the best reason not to buy Nvidia at this point is that the law of large numbers is likely to restrain its growth, at least at some point. Right now, Nvidia is about 20% more valuable than the #2 company, Apple.

A $10 trillion valuation for Nvidia, but that would mean a gain of 72%. That's nothing to sneer at, but Nvidia can't be the kind of multi-bagging stock at this valuation that it was a few years ago.

Additionally, the bigger the company gets, the more it has to defend its market share from challengers like AMD and Intel, and even its own customers like Amazon and Google that are developing their own chips. Thus far, Nvidia has remained the dominant provider of data center GPUs, but its monopoly is not guaranteed.

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Despite those risks, the company remains in the driver's seat in the AI boom, and its valuation seems to underestimate its future growth.

While its growth rate will moderate at some point, its valuation offers investors an attractive margin of safety, and Nvidia is well-positioned to capitalize on the future growth of AI.

Compared to its peers, the stock looks undervalued and remains a strong buy.

Jeremy Bowman has positions in Advanced Micro Devices, Amazon, Broadcom, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Apple, Broadcom, Intel, Marvell Technology, and Nvidia. The Motley Fool has a disclosure policy.

Artificial intelligence (AI) has created some enormous multibaggers for investors, but none are quite on the same level as Nvidia (NVDA +0.68%). When ChatGPT helped ignite the generative AI boom in late 2022, Nvidia was worth less than $400 billion. Today, the chipmaker's market capitalization has ballooned to roughly $5.6 trillion -- making it the most valuable company in the world.

NVDA Market Cap data by YCharts

This parabolic ascent shows how Nvidia evolved from a generic semiconductor company known for gaming GPUs into the undisputed king of AI infrastructure. Let's assess what might happen if you invested $500 in Nvidia every month from now through the end of 2030. Spoiler alert: Big gains could be in store.

How big can Nvidia get? Before crunching any numbers, I need to come up with a baseline of where Nvidia might be headed over the next several years. The company generated $96.2 billion in revenue during its most recent quarter, representing a staggering 106% increase from the prior year. Even more impressive, Nvidia's data center business generated $89 billion, growing 117% year over year.

The next chapter is already quietly unfolding. Nvidia's Vera Rubin architecture is moving into full production. The company says the platform can deliver 10x the agentic AI throughput of its previous generation Grace Blackwell architecture. This matters because AI spending is moving beyond simply training large language models (LLMs). Reasoning models, AI agents, robotics, and other inference workloads require enormous amounts of continuous computing power.

Meanwhile, infrastructure commitments from big tech are getting larger. The big five hyperscalers -- Amazon, Alphabet, Microsoft, Meta Platforms, and Oracle -- plan to spend approximately $800 billion in capital expenditures (capex) in 2026 alone and roughly $1.3 trillion in 2027. Meanwhile, Anthropic has reportedly committed at least $518 billion to AI infrastructure over the next decade.

Nvidia is also expanding how it can monetize data centers. The company isn't merely selling GPUs anymore. AI factories now combine GPUs with other solutions from Nvidia, including CPUs, NVLink, networking, BlueField data processing units, storage infrastructure, and software platforms like CUDA.

I think complementing the legacy GPU business with adjacent solutions should help Nvidia expand its market share in the data center realm. Against this backdrop, I think the company can rise from a $5.6 trillion market value today to $15 trillion by 2030.

Image source: Nvidia.

What investing $500 a month in Nvidia looks like An investor putting $500 into Nvidia every month would invest $6,000 over the course of a full year. Assuming the strategy begins in October 2026 and continues through December 2030, the contributions would total $25,500.

Unfortunately, calculating the ending value isn't as simple as multiplying $25,500 by Nvidia's expected return. The reason is because you will be using a dollar-cost averaging strategy over the lifetime of the investment. This means the initial $500 invested in October 2026 has more than four years to appreciate, while a $500 investment made near the end of 2030 has almost no time to compound.

If I assume Nvidia's market capitalization rises gradually from $5.6 trillion to $15 trillion by the end of 2030, that works out to a 163% cumulative increase, or roughly 26% annualized or 1.9% per month when compounded. While this is a bit aggressive, I think it is also a reasonable upside scenario considering it's nowhere near the returns Nvidia generated during earlier stages of the AI boom.

If I run the calculated return across all 51 monthly investments, the $25,500 investment could finish 2030 worth approximately $43,400. That represents roughly $17,900 in investment gains, or 70% upside.

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Remember to think long-term Obviously, no one knows what Nvidia will be worth four years from now. If the company reaches a $10 trillion valuation by the end of 2030, the same $500 per month strategy would grow to roughly $34,400. If the AI infrastructure supercycle sends Nvidia all the way to $20 trillion, the investment could approach $51,600 -- nearly a 100% gain.

The first takeaway here is that Nvidia has enough structural tailwinds to support meaningful share price appreciation over the next several years. The second takeaway is to understand is that my estimates assume Nvidia's share price generally follows a smooth, compounded path toward the 2030 target.

In reality, the stock's movement will almost certainly be messier. This means the price could rise or fall significantly from month to month. That's actually the entire point of dollar-cost averaging: rather than trying to time the market and predict exactly when Nvidia's stock will rise or fall, investors consistently put the same amount of money to work. For someone investing consistently every month, patience will ultimately matter just as much as finding the right opportunities.

BNP Paribas Sees Nvidia Holding 75%+ of AI Market and Raises Target Summary

BNP Paribas raised Nvidia’s price target to $345 from $285, implying about 47% upside as it expects continued strength in AI computing

BNP Paribas lifted its Nvidia NVDA price target to $345 from $285, maintaining an Outperform rating as it sees the chipmaker benefiting from the shift toward more demanding AI inference workloads.

The revised target represents about 47% upside from Nvidia's Oct. 2 closing level of $234. BNP Paribas expects the company to retain at least three-fourths of the AI computing market by dollar value, despite gains by AMD and custom-designed accelerators.

The brokerage's view extends beyond Nvidia's graphics processors. It sees the upcoming Vera Rubin platform, which combines computing, networking and other components, as important for agentic AI systems handling more complex tasks.

Nvidia's software and networking capabilities may also help it defend its position as AI infrastructure becomes more integrated. BNP Paribas expects server CPUs and networking to add to the company's growth opportunities.

The brokerage also forecasts gross margins above 70% despite competition. Its valuation framework applies a 15-times multiple to estimated calendar 2028 earnings, alongside cash, to support the new target.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

Nvidia's $20 billion deal to acquire assets from Groq, an AI chip designer, "squeezed out" stockholders, a lawsuit brought by ex-engineers at the startup alleges.

Joshua Rubin and Benjamin Serebrin alleged that the deal offered stockholders a "lowball" price, in documents filed on Oct. 2 at the Court of Chancery of the State of Delaware.

Rubin and Serebrin both left Groq before its Nvidia deal was announced, per their LinkedIn profiles, but held stock in the company, per their lawsuit.

In December, Groq announced it had entered into a licensing agreement with Nvidia for the company's inference technology. Groq founder and CEO Jonathan Ross and its president, Sunny Madra, joined the $5 trillion chip giant as part of the deal, along with other senior leaders.

Groq said it would continue as an "independent company" and has raised around $1 billion since June, from investors including Nvidia.

Rubin and Serebrin's case alleges that Groq's board of directors "sold the company to Nvidia without the stockholder vote Delaware law requires and without any process designed to test or maximize the value of what Nvidia bought."

"Our licensing agreement with NVIDIA delivered exceptional value for Groq, our investors, and our employees," a Groq spokesperson told CNBC.

"This lawsuit is meritless and we will vigorously defend ourselves against it," they added. "We remain focused on serving our customers and building the world's leading AI inference cloud."

Nvidia has been approached for comment.

The $20 billion dealThe case alleges that Nvidia allocated "$17 billion to a license it labeled "non-exclusive," set aside an additional $3 billion of NVIDIA restricted stock units ("RSUs") for the Groq employees who moved with the technology, and positioned the investment funds that designated Groq Board members to enjoy windfall returns from the later squeeze-out."

It also alleges that "A Board majority was conflicted as a result." It adds: "The Board's conflicted choice cost Groq's stockholders billions of dollars."

Approximately 150 to 200 Groq engineers became Nvidia employees as part of the deal, according to the case.

In an email to employees from around the time the deal was announced, obtained by CNBC, Nvidia CEO Jensen Huang said the agreement would expand Nvidia's capabilities.

"We plan to integrate Groq's low-latency processors into the NVIDIA AI factory architecture, extending the platform to serve an even broader range of AI inference and real-time workloads," Huang wrote.

Huang added: "While we are adding talented employees to our ranks and licensing Groq's IP, we are not acquiring Groq as a company."

Nvidia (NVDA +1.36%) shareholders have to be feeling pretty good these days. The only company in the world commanding a market cap north of $5 trillion came within a penny -- yes, a penny -- of hitting a new intraday all-time high on Friday.

A market laggard earlier this year, Nvidia's 25% gain so far in 2026 doubles the market's return. Zoom out, and Nvidia shares are a five-bagger over the last three years. This is also an 11-bagger over the past five years.

It's easy to get lost in the upticks, but I want to turn your attention to a stock chart that you don't see very often. It may seem bearish at first, but here is Nvidia's chart over the past five quarters -- with the earnings reports annotated. Spoiler alert: Nvidia bears aren't going to like it.

Marching to the beats of a different drummer Check out the first four purple circles with the letter E inside. Those are the moments when Nvidia reported its quarterly results. The immediate market reaction to those four reports was to send Nvidia stock lower. That's bad, but follow the money. The stock would make all of that back -- and then some -- by the next time it reported.

The one time it didn't happen -- check out the fifth and final purple circle, which is lower than the fourth circle -- was the one time over the past five earnings seasons that the shares popped higher in response. Nvidia is once again approaching an all-time high, so heads it wins, tails it wins.

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A rising tide lifts all chips It's good to be the top dog in AI infrastructure. Nvidia provides data centers with the AI chips and accelerators they need to deliver speedy, thorough results. This appetite is only intensifying. You see that in the top-line growth that Nvidia has posted in each of those five purple circles over the past 15 months.

Q2 FY 2026: 56% Q3 FY 2026: 63% Q4 FY 2026: 73% Q1 FY 2027: 85% Q2 FY 2027: 106% This isn't just an accelerating revenue growth story, even though it is certainly impressive to see the world's most valuable company stepping on the gas these days. Nvidia has also consistently beaten Wall Street profit targets in that time. It also scores bonus points for the degree of those quarterly beats, which happen to also be accelerating over the past year.

Image source: Getty Images.

You can't spell G-A-I-N without AI in the middle Nvidia keeps winning. Year-over-year revenue jumps won't always more than double the way it did in its latest quarter. Its normalized net margin won't always be north of 40%. Then again, that argument could also have been made a year ago, when revenue growth was half today's pace and normalized net margin remained south of 40%.

I have one final point that I don't think I've seen anyone make. CEO Jensen Huang thinks his stock is cheap. Last week, Nvidia's board authorized another $150 billion in share repurchases, a new record for corporate buybacks. Let's add some color to that claim.

Analysts see Nvidia trading for 15 times next year's earnings and less than 11 times next year's bottom-line forecast. Remember how I mentioned that Nvidia was an 11-bagger over the past five years? Let's reframe that in a fresh way.

Exactly five years ago -- on Oct. 5, 2021 -- Nvidia stock closed at $20.45. Analysts see it earning $21.09 per share. You could have bought Nvidia five years ago for less than what it will earn in a single year, seven years later. Time has been kind to Nvidia and its shareholders.

Nvidia (NVDA - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this maker of graphics chips for gaming and artificial intelligence have returned +1.6% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Semiconductor - General industry, to which Nvidia belongs, has gained 8.5% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Nvidia is expected to post earnings of $2.47 per share, indicating a change of +90% from the year-ago quarter. The Zacks Consensus Estimate has changed -0% over the last 30 days.

The consensus earnings estimate of $9.25 for the current fiscal year indicates a year-over-year change of +93.9%. This estimate has changed +0.1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $15.53 indicates a change of +68% from what Nvidia is expected to report a year ago. Over the past month, the estimate has changed +2.7%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Nvidia is rated Zacks Rank #1 (Strong Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Nvidia, the consensus sales estimate for the current quarter of $109.02 billion indicates a year-over-year change of +91.2%. For the current and next fiscal years, $406.05 billion and $671.95 billion estimates indicate +88% and +65.5% changes, respectively.

Last Reported Results and Surprise HistoryNvidia reported revenues of $96.22 billion in the last reported quarter, representing a year-over-year change of +105.9%. EPS of $2.22 for the same period compares with $1.05 a year ago.

Compared to the Zacks Consensus Estimate of $91.8 billion, the reported revenues represent a surprise of +4.82%. The EPS surprise was +6.22%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Nvidia is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Nvidia. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.

Fischer Financial Services Inc. grew its stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 3.0% in the second quarter, according to the company in its most recent filing with the SEC. The firm owned 109,580 shares of the computer hardware maker’s stock after acquiring an additional 3,197 shares during the quarter. NVIDIA comprises about 5.5% of Fischer Financial Services Inc.’s portfolio, making the stock its 6th biggest holding. Fischer Financial Services Inc.’s holdings in NVIDIA were worth $21,926,000 as of its most recent filing with the SEC.

Other hedge funds have also recently bought and sold shares of the company. Lifetime Wealth Management P.C. bought a new position in NVIDIA in the fourth quarter valued at approximately $26,000. Longview Financial Advisors Inc. bought a new position in shares of NVIDIA in the 1st quarter valued at $27,000. Langley Wealth Management LLC bought a new position in shares of NVIDIA in the 2nd quarter valued at $34,000. Phillip James Consulting Co. acquired a new position in shares of NVIDIA during the 1st quarter worth $40,000. Finally, Frankly Finances LLC acquired a new position in NVIDIA during the second quarter worth about $60,000. 65.27% of the stock is owned by institutional investors.

NVIDIA Stock Performance NASDAQ NVDA opened at $233.95 on Monday. The firm has a market capitalization of $5.64 trillion, a PE ratio of 29.58, a price-to-earnings-growth ratio of 1.81 and a beta of 2.22. The business’s 50-day moving average price is $218.74 and its two-hundred day moving average price is $207.65. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. NVIDIA Corporation has a 12 month low of $164.27 and a 12 month high of $237.88.

NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The company had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. During the same period last year, the company earned $1.05 earnings per share. The firm’s revenue was up 105.9% compared to the same quarter last year. On average, analysts expect that NVIDIA Corporation will post 9.25 EPS for the current year. NVIDIA Announces Dividend The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were given a $0.25 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.4%. NVIDIA’s payout ratio is 12.64%.

NVIDIA declared that its Board of Directors has initiated a stock buyback program on Monday, September 28th that authorizes the company to buyback $150.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Analysts Set New Price Targets NVDA has been the subject of a number of research reports. Sanford C. Bernstein reissued a “buy” rating on shares of NVIDIA in a report on Monday, September 21st. Mizuho set a $315.00 price target on shares of NVIDIA and gave the stock an “outperform” rating in a report on Thursday, August 27th. Piper Sandler began coverage on NVIDIA in a research note on Wednesday, September 9th. They issued an “overweight” rating and a $300.00 price target for the company. 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. Finally, China Renaissance boosted their price objective on NVIDIA from $319.00 to $330.00 and gave the stock a “buy” rating in a research report on Monday, August 31st. Four analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Buy” and a consensus price target of $320.71.

View Our Latest Stock Report on NVDA

Key Stories Impacting NVIDIA Here are the key news stories impacting NVIDIA this week:

Positive Sentiment: Morgan Stanley named NVIDIA its top semiconductor pick, maintaining an Overweight rating and setting a $300 price target. The firm believes NVIDIA’s software ecosystem, scale and positioning across AI infrastructure trends give it a durable competitive moat. Morgan Stanley names NVIDIA a top pick Positive Sentiment: NVIDIA’s recently announced $150 billion buyback authorization lifts total remaining repurchase capacity to approximately $235 billion. Investors view the plan as a sign of management confidence and a potential source of per-share earnings support. NVIDIA buyback analysis Positive Sentiment: Analysts continue to raise expectations for hyperscaler spending, with Barclays estimating NVIDIA could generate $401 billion in hyperscaler revenue in 2027. CoreWeave’s launch of the Vera Rubin platform and additional enterprise customers also supports demand for NVIDIA’s next-generation systems. Barclays hyperscaler revenue estimate Neutral Sentiment: The broader semiconductor and technology complex is attracting buying interest as AI investment remains a major market leadership theme. However, NVIDIA’s valuation and substantial market concentration leave the stock sensitive to interest rates, economic data and shifts in institutional positioning. Negative Sentiment: Investors are monitoring reports that Amazon may move roughly $8 billion of NVIDIA chips off its balance sheet through leasing or financing structures. While this could improve customer flexibility, it adds scrutiny around AI infrastructure financing and so-called circular transactions. Amazon NVIDIA chip balance-sheet report Negative Sentiment: Export-control concerns remain a headline risk after prosecutors alleged a California man helped smuggle approximately $300 million of NVIDIA chips to China. Separately, Michael Burry warned that GPU depreciation could undermine the economics of the AI infrastructure boom, while Alphabet’s growing use of internally designed chips represents a longer-term competitive threat. NVIDIA chip smuggling prosecution Insider Activity In other news, CFO Colette Kress sold 34,918 shares of NVIDIA stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $219.05, for a total value of $7,648,787.90. Following the completion of the transaction, the chief financial officer directly owned 765,103 shares of the company’s stock, valued at approximately $167,595,812.15. This trade represents a 4.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the firm’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the sale, the director directly owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. This represents a 21.03% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 1,766,118 shares of company stock valued at $399,450,353. 3.94% of the stock is currently owned by insiders.

NVIDIA Company Profile (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

Featured Stories Five stocks we like better than NVIDIA Could Nike’s Brutal Sell-Off Finally Be Running Out of Steam? The AI Buildout Needs Power It Cannot Get: 4 Energy Stocks Already Have It McDonald’s Is Undergoing a Massive New Growth Strategy. Can It Win Back Consumers? MGM Resorts Stock Sinks After Diller Deal Collapse: Overreaction or Warning? Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).

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Asahi Life Asset Management CO. LTD. lessened its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 5.6% in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 45,848 shares of the computer hardware maker’s stock after selling 2,716 shares during the quarter. NVIDIA comprises approximately 5.2% of Asahi Life Asset Management CO. LTD.’s portfolio, making the stock its 3rd biggest holding. Asahi Life Asset Management CO. LTD.’s holdings in NVIDIA were worth $9,174,000 at the end of the most recent quarter.

Several other large investors have also recently modified their holdings of the business. Financial Alternatives Inc boosted its holdings in NVIDIA by 24.9% during the 2nd quarter. Financial Alternatives Inc now owns 3,192 shares of the computer hardware maker’s stock valued at $639,000 after acquiring an additional 636 shares during the period. MSH Capital Advisors LLC grew its position in NVIDIA by 55.6% during the 2nd quarter. MSH Capital Advisors LLC now owns 31,284 shares of the computer hardware maker’s stock worth $6,260,000 after acquiring an additional 11,177 shares during the last quarter. Strategic Equity Management increased its stake in NVIDIA by 24.9% in the 2nd quarter. Strategic Equity Management now owns 1,772 shares of the computer hardware maker’s stock worth $355,000 after purchasing an additional 353 shares during the period. Toews Corp ADV purchased a new position in NVIDIA in the 2nd quarter worth approximately $479,000. Finally, Edmond DE Rothschild Holding S.A. lifted its position in NVIDIA by 17.9% in the second quarter. Edmond DE Rothschild Holding S.A. now owns 1,537,950 shares of the computer hardware maker’s stock valued at $307,728,000 after purchasing an additional 233,722 shares during the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.

Insider Buying and Selling at NVIDIA In related news, CFO Colette Kress sold 34,918 shares of NVIDIA stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the sale, the chief financial officer directly owned 765,103 shares in the company, valued at $167,595,812.15. The trade was a 4.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the company’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the sale, the director directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 1,766,118 shares of company stock valued at $399,450,353. 3.94% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes A number of research firms have recently weighed in on NVDA. UBS Group set a $300.00 price objective on NVIDIA and gave the company a “buy” rating in a research note on Thursday, August 27th. Wall Street Zen lowered shares of NVIDIA from a “strong-buy” rating to a “buy” rating in a report on Saturday, September 26th. BMO Capital Markets set a $340.00 price target on shares of NVIDIA and gave the company an “outperform” rating in a report on Thursday, August 20th. Melius Research set a $420.00 price target on shares of NVIDIA in a research report on Thursday, August 27th. Finally, Morgan Stanley set a $230.00 price target on shares of NVIDIA in a report on Friday. Four investment analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Buy” and an average target price of $320.71. Get Our Latest Stock Report on NVIDIA

NVIDIA Price Performance Shares of NASDAQ NVDA opened at $233.95 on Monday. The firm has a fifty day simple moving average of $218.74 and a two-hundred day simple moving average of $207.65. NVIDIA Corporation has a 12 month low of $164.27 and a 12 month high of $237.88. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. The firm has a market capitalization of $5.64 trillion, a PE ratio of 29.58, a price-to-earnings-growth ratio of 1.81 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The firm had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. During the same quarter in the previous year, the firm posted $1.05 EPS. The company’s revenue for the quarter was up 105.9% compared to the same quarter last year. Equities analysts expect that NVIDIA Corporation will post 9.25 earnings per share for the current year.

NVIDIA announced that its Board of Directors has approved a share buyback plan on Monday, September 28th that allows the company to buyback $150.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its stock is undervalued.

NVIDIA Dividend Announcement The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA’s payout ratio is presently 12.64%.

NVIDIA News Roundup Here are the key news stories impacting NVIDIA this week:

Positive Sentiment: Morgan Stanley named NVIDIA its top semiconductor pick, maintaining an Overweight rating and setting a $300 price target. The firm believes NVIDIA’s software ecosystem, scale and positioning across AI infrastructure trends give it a durable competitive moat. Morgan Stanley names NVIDIA a top pick Positive Sentiment: NVIDIA’s recently announced $150 billion buyback authorization lifts total remaining repurchase capacity to approximately $235 billion. Investors view the plan as a sign of management confidence and a potential source of per-share earnings support. NVIDIA buyback analysis Positive Sentiment: Analysts continue to raise expectations for hyperscaler spending, with Barclays estimating NVIDIA could generate $401 billion in hyperscaler revenue in 2027. CoreWeave’s launch of the Vera Rubin platform and additional enterprise customers also supports demand for NVIDIA’s next-generation systems. Barclays hyperscaler revenue estimate Neutral Sentiment: The broader semiconductor and technology complex is attracting buying interest as AI investment remains a major market leadership theme. However, NVIDIA’s valuation and substantial market concentration leave the stock sensitive to interest rates, economic data and shifts in institutional positioning. Negative Sentiment: Investors are monitoring reports that Amazon may move roughly $8 billion of NVIDIA chips off its balance sheet through leasing or financing structures. While this could improve customer flexibility, it adds scrutiny around AI infrastructure financing and so-called circular transactions. Amazon NVIDIA chip balance-sheet report Negative Sentiment: Export-control concerns remain a headline risk after prosecutors alleged a California man helped smuggle approximately $300 million of NVIDIA chips to China. Separately, Michael Burry warned that GPU depreciation could undermine the economics of the AI infrastructure boom, while Alphabet’s growing use of internally designed chips represents a longer-term competitive threat. NVIDIA chip smuggling prosecution NVIDIA Company Profile (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

See Also Five stocks we like better than NVIDIA Could Nike’s Brutal Sell-Off Finally Be Running Out of Steam? The AI Buildout Needs Power It Cannot Get: 4 Energy Stocks Already Have It McDonald’s Is Undergoing a Massive New Growth Strategy. Can It Win Back Consumers? MGM Resorts Stock Sinks After Diller Deal Collapse: Overreaction or Warning?

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Trillium Asset Management LLC cut its stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 18.3% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 1,192,453 shares of the computer hardware maker’s stock after selling 266,278 shares during the period. NVIDIA makes up approximately 7.3% of Trillium Asset Management LLC’s holdings, making the stock its largest holding. Trillium Asset Management LLC’s holdings in NVIDIA were worth $238,598,000 at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in the company. Lifetime Wealth Management P.C. purchased a new position in NVIDIA during the 4th quarter valued at about $26,000. Longview Financial Advisors Inc. acquired a new position in shares of NVIDIA in the first quarter valued at approximately $27,000. Langley Wealth Management LLC acquired a new position in shares of NVIDIA in the second quarter valued at approximately $34,000. Phillip James Consulting Co. purchased a new position in shares of NVIDIA during the first quarter valued at approximately $40,000. Finally, Frankly Finances LLC purchased a new position in shares of NVIDIA during the second quarter valued at approximately $60,000. Hedge funds and other institutional investors own 65.27% of the company’s stock.

More NVIDIA News Here are the key news stories impacting NVIDIA this week:

Positive Sentiment: Morgan Stanley named NVIDIA its top semiconductor pick, maintaining an Overweight rating and setting a $300 price target. The firm believes NVIDIA’s software ecosystem, scale and positioning across AI infrastructure trends give it a durable competitive moat. Morgan Stanley names NVIDIA a top pick Positive Sentiment: NVIDIA’s recently announced $150 billion buyback authorization lifts total remaining repurchase capacity to approximately $235 billion. Investors view the plan as a sign of management confidence and a potential source of per-share earnings support. NVIDIA buyback analysis Positive Sentiment: Analysts continue to raise expectations for hyperscaler spending, with Barclays estimating NVIDIA could generate $401 billion in hyperscaler revenue in 2027. CoreWeave’s launch of the Vera Rubin platform and additional enterprise customers also supports demand for NVIDIA’s next-generation systems. Barclays hyperscaler revenue estimate Neutral Sentiment: The broader semiconductor and technology complex is attracting buying interest as AI investment remains a major market leadership theme. However, NVIDIA’s valuation and substantial market concentration leave the stock sensitive to interest rates, economic data and shifts in institutional positioning. Negative Sentiment: Investors are monitoring reports that Amazon may move roughly $8 billion of NVIDIA chips off its balance sheet through leasing or financing structures. While this could improve customer flexibility, it adds scrutiny around AI infrastructure financing and so-called circular transactions. Amazon NVIDIA chip balance-sheet report Negative Sentiment: Export-control concerns remain a headline risk after prosecutors alleged a California man helped smuggle approximately $300 million of NVIDIA chips to China. Separately, Michael Burry warned that GPU depreciation could undermine the economics of the AI infrastructure boom, while Alphabet’s growing use of internally designed chips represents a longer-term competitive threat. NVIDIA chip smuggling prosecution Analyst Upgrades and Downgrades A number of equities research analysts have recently commented on the company. Raymond James Financial set a $515.00 price objective on NVIDIA and gave the company a “strong-buy” rating in a research report on Thursday, August 27th. Wells Fargo & Company set a $210.00 target price on shares of NVIDIA in a research note on Friday. Citigroup reiterated a “buy” rating and set a $315.00 target price (up from $300.00) on shares of NVIDIA in a report on Thursday, August 27th. Wedbush boosted their target price on shares of NVIDIA from $330.00 to $345.00 and gave the stock an “outperform” rating in a research report on Thursday, August 27th. Finally, China Renaissance upped their target price on shares of NVIDIA from $319.00 to $330.00 and gave the company a “buy” rating in a research note on Monday, August 31st. Four equities research analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Buy” and an average target price of $320.71. Get Our Latest Stock Analysis on NVDA

NVIDIA Price Performance Shares of NVDA opened at $233.95 on Monday. The firm has a market cap of $5.64 trillion, a price-to-earnings ratio of 29.58, a PEG ratio of 1.81 and a beta of 2.22. NVIDIA Corporation has a 52 week low of $164.27 and a 52 week high of $237.88. The stock has a 50 day moving average of $218.74 and a 200-day moving average of $207.65. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. During the same period in the previous year, the business posted $1.05 EPS. The company’s quarterly revenue was up 105.9% on a year-over-year basis. As a group, analysts forecast that NVIDIA Corporation will post 9.25 EPS for the current year.

NVIDIA Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date was Thursday, September 10th. NVIDIA’s payout ratio is 12.64%.

NVIDIA declared that its board has authorized a stock repurchase program on Monday, September 28th that permits the company to repurchase $150.00 billion in outstanding shares. This repurchase authorization permits the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets In other NVIDIA news, CFO Colette Kress sold 34,918 shares of the company’s stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total value of $7,648,787.90. Following the completion of the sale, the chief financial officer directly owned 765,103 shares in the company, valued at $167,595,812.15. This represents a 4.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy Teter sold 30,460 shares of the company’s stock in a transaction on Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the sale, the executive vice president owned 2,687,660 shares of the company’s stock, valued at approximately $598,810,648. This trade represents a 1.12% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,766,118 shares of company stock worth $399,450,353 over the last ninety days. Company insiders own 3.94% of the company’s stock.

NVIDIA Profile (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

Read More Five stocks we like better than NVIDIA Could Nike’s Brutal Sell-Off Finally Be Running Out of Steam? The AI Buildout Needs Power It Cannot Get: 4 Energy Stocks Already Have It McDonald’s Is Undergoing a Massive New Growth Strategy. Can It Win Back Consumers? MGM Resorts Stock Sinks After Diller Deal Collapse: Overreaction or Warning?

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PCM Encore LLC trimmed its stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 3.3% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 129,660 shares of the computer hardware maker’s stock after selling 4,491 shares during the quarter. NVIDIA comprises 4.6% of PCM Encore LLC’s investment portfolio, making the stock its 2nd biggest holding. PCM Encore LLC’s holdings in NVIDIA were worth $25,944,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. Bank of America Corp DE boosted its holdings in NVIDIA by 2.1% in the 1st quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker’s stock valued at $33,345,453,000 after purchasing an additional 4,019,505 shares in the last quarter. Invesco Ltd. lifted its stake in shares of NVIDIA by 0.3% in the fourth quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker’s stock valued at $26,714,167,000 after purchasing an additional 446,178 shares during the period. J. Stern & Co. LLP boosted its stake in shares of NVIDIA by 13,709.1% during the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock worth $23,454,297,000 after acquiring an additional 124,849,603 shares in the last quarter. Amundi raised its holdings in NVIDIA by 10.4% during the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after purchasing an additional 12,575,177 shares during the last quarter. Finally, Deutsche Bank AG boosted its position in shares of NVIDIA by 2.3% in the 2nd quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker’s stock worth $18,399,108,000 after buying an additional 2,045,101 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.

Analyst Upgrades and Downgrades A number of research firms recently issued reports on NVDA. Jefferies Financial Group reaffirmed a “buy” rating on shares of NVIDIA in a research note on Wednesday, August 26th. Royal Bank Of Canada raised their price target on NVIDIA from $300.00 to $330.00 and gave the stock an “outperform” rating in a research note on Thursday, August 27th. Weiss Ratings restated a “buy (b)” rating on shares of NVIDIA in a report on Wednesday, July 8th. Piper Sandler assumed coverage on shares of NVIDIA in a research note on Wednesday, September 9th. They set an “overweight” rating and a $300.00 price objective for the company. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of NVIDIA in a report on Monday, August 31st. Four research analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus target price of $320.71.

Check Out Our Latest Stock Analysis on NVDA Key Headlines Impacting NVIDIA Here are the key news stories impacting NVIDIA this week:

Positive Sentiment: Morgan Stanley named NVIDIA its top semiconductor pick, maintaining an Overweight rating and setting a $300 price target. The firm believes NVIDIA’s software ecosystem, scale and positioning across AI infrastructure trends give it a durable competitive moat. Morgan Stanley names NVIDIA a top pick Positive Sentiment: NVIDIA’s recently announced $150 billion buyback authorization lifts total remaining repurchase capacity to approximately $235 billion. Investors view the plan as a sign of management confidence and a potential source of per-share earnings support. NVIDIA buyback analysis Positive Sentiment: Analysts continue to raise expectations for hyperscaler spending, with Barclays estimating NVIDIA could generate $401 billion in hyperscaler revenue in 2027. CoreWeave’s launch of the Vera Rubin platform and additional enterprise customers also supports demand for NVIDIA’s next-generation systems. Barclays hyperscaler revenue estimate Neutral Sentiment: The broader semiconductor and technology complex is attracting buying interest as AI investment remains a major market leadership theme. However, NVIDIA’s valuation and substantial market concentration leave the stock sensitive to interest rates, economic data and shifts in institutional positioning. Negative Sentiment: Investors are monitoring reports that Amazon may move roughly $8 billion of NVIDIA chips off its balance sheet through leasing or financing structures. While this could improve customer flexibility, it adds scrutiny around AI infrastructure financing and so-called circular transactions. Amazon NVIDIA chip balance-sheet report Negative Sentiment: Export-control concerns remain a headline risk after prosecutors alleged a California man helped smuggle approximately $300 million of NVIDIA chips to China. Separately, Michael Burry warned that GPU depreciation could undermine the economics of the AI infrastructure boom, while Alphabet’s growing use of internally designed chips represents a longer-term competitive threat. NVIDIA chip smuggling prosecution NVIDIA Stock Performance Shares of NVDA stock opened at $233.95 on Monday. The company’s fifty day simple moving average is $218.74 and its 200-day simple moving average is $207.65. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. NVIDIA Corporation has a 52 week low of $164.27 and a 52 week high of $237.88. The company has a market cap of $5.64 trillion, a PE ratio of 29.58, a P/E/G ratio of 1.81 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping the consensus estimate 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 96.04% and a net margin of 63.66%.The company’s revenue was up 105.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.05 earnings per share. As a group, equities research analysts anticipate that NVIDIA Corporation will post 9.25 EPS for the current year.

NVIDIA Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were issued a $0.25 dividend. The ex-dividend date was 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 12.64%.

NVIDIA declared that its board has approved a share repurchase program on Monday, September 28th that permits the company to buyback $150.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to buy up to 2.8% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling In other NVIDIA news, Director Mark A. Stevens sold 622,239 shares of NVIDIA stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the sale, the director directly owned 2,336,531 shares in the company, valued at $541,187,310.22. The trade was a 21.03% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Colette Kress sold 34,918 shares of the stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total value of $7,648,787.90. Following the transaction, the chief financial officer owned 765,103 shares of the company’s stock, valued at approximately $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 1,766,118 shares of company stock worth $399,450,353. 3.94% of the stock is currently owned by corporate insiders.

NVIDIA Profile (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

Read More Five stocks we like better than NVIDIA Could Nike’s Brutal Sell-Off Finally Be Running Out of Steam? The AI Buildout Needs Power It Cannot Get: 4 Energy Stocks Already Have It McDonald’s Is Undergoing a Massive New Growth Strategy. Can It Win Back Consumers? MGM Resorts Stock Sinks After Diller Deal Collapse: Overreaction or Warning?

Receive News & Ratings for NVIDIA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NVIDIA and related companies with MarketBeat.com's FREE daily email newsletter.

Amazon is quietly restructuring who actually owns the AI hardware powering its data centers, and the investors taking the other side of that deal may not realize what depreciates fastest in Silicon Valley.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Amazon (NASDAQ:AMZN | AMZN Price Prediction) is in talks to move $8 billion of NVIDIA (NASDAQ:NVDA) Grace Blackwell chips into a special purpose vehicle, the Financial Times reported. The vehicle would sell debt to outside investors, buy the chips, and lease them back to Amazon. The hardware stays where it is. It is already installed in data centers across at least five states, and Amazon would keep up to 10% of the equity.

Amazon spent $54.2 billion on capital projects in the second quarter, 68% more than a year earlier. Andy Jassy committed to roughly $200 billion in spending for 2026. Free cash flow over the past 12 months turned negative at -$7.6 billion. Long-term debt rose to $119.1 billion from $65.6 billion a year earlier. A leaseback lets Amazon keep running the chips while protecting its credit rating and moving the obligation into lease disclosures.

Investors Would Own Tech’s Fastest-Aging Asset The deal is smart for Amazon and weak for whoever buys the debt. Airlines do sale-leasebacks on planes that fly for decades. Grace Blackwell is already one generation behind Vera Rubin. NVIDIA says Vera Rubin delivers 35X lower token costs than Grace Blackwell Ultra. NVIDIA estimates about $25 billion per gigawatt of revenue for Grace Blackwell and roughly $40 billion for Vera Rubin. Each new launch makes the collateral worth less.

On the July earnings call, Jassy said servers take “a little less than three years” to break even and last at least five to six years. Amazon keeps the early, profitable years. Lenders are left with later years, when a chip two generations old must be refinanced or resold.

NVIDIA Is Building Similar Financing Structures NVIDIA is building similar structures. NVIDIA reported $279 billion in supply commitments and guarantee obligations limited at $108.5 billion for AI cloud and data center partners. It signed up six asset managers and banks to raise more than $500 billion of outside capital for AI infrastructure. Management said: “We know some will call this circular financing.” NVIDIA expects the AI labs it supports to account for roughly a quarter of its business next year.

Demand for computing power remains intense. NVIDIA says it can supply about 70% of what customers want. Having chips that lose value quickly carries risk. Amazon is choosing cash over hardware ownership. Buyers want what the chips produce and are passing on the risk of having them to someone else.

What to Watch in Amazon’s Next Two Earnings Reports Three signals will show whether this becomes the template. First, whether Amazon’s third-quarter earnings report reveals the vehicle and how much its lease obligations grow. Amazon has guided to $22.5 billion to $26.5 billion in operating income for the quarter. Second, the interest rate investors demand on the debt.

A wide spread would mean lenders are pricing in an aging risk that stock investors have ignored. Third, whether other cloud giants announce similar deals within two quarters. Should they do so, more of AI’s hardware bill will sit off the balance sheets investors read, and lenders will be left holding chips that NVIDIA is working to make obsolete.

Contact [email protected] for any questions or corrections.

Jensen Huang, one of the co-founders of Nvidia (NVDA +1.34%), is no stranger to making bold predictions. One that he has been floating for a few years is that data center capital expenditures will reach $3 trillion to $4 trillion annually by 2030. That's a massive increase from today's levels, and he just commented that he believes that projection is still accurate.

While that projection may sound outlandish, I think there's some truth to it, because Huang is privy to conversations that the regular investor is not.

Nvidia CEO Jensen Huang. Image source: Nvidia Corporation.

Nvidia is poised to head higher with this guidance While investors should view most CEO comments through a cautionary lens, this is one situation where I think investors should be a bit more trusting. The data center build-out is in full swing, and many companies cannot access enough computing units to meet their needs. This is causing them to plan out their growth over several years. Part of this means sharing their build-out projections with suppliers like Nvidia, which can then tell their suppliers how much capacity to prepare for. This can happen years in advance of when the chips are actually needed, so with the start of 2030 being just over three years away, it's not outlandish to think that there are plans this far out.

Premium Feature

Moneyball Superscore

95/100

Today's Change

(

1.34

%) $

3.09

Current Price

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233.95

So, I think investors can take most of what Huang says at face value.

And if he ends up being right, there could be monstrous upside.

In 2026, Nvidia expects the big five artificial intelligence (AI) hyperscalers to spend nearly $800 billion on capital expenditures. This year, Wall Street analysts estimate Nvidia's revenue will reach $411 billion. There are other companies spending big on AI outside the big five, so the actual total for this year may reach as high as $1 trillion. That would give Nvidia about a 40% share of all spending.

If it can maintain that share, Nvidia's revenue could top $1 trillion by 2030. That would easily lead to the stock doubling over that time frame, and anytime you can find a stock that has the potential to double in under five years, it's a fantastic investment opportunity.

Nvidia is still one of the top ways to invest in the AI build-out; with Huang reaffirming the strength of the AI arms race, I think it's a great buying signal for investors.

Mmbg Investment Advisors CO. lifted its holdings in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 3.0% during the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 272,239 shares of the computer hardware maker’s stock after acquiring an additional 7,929 shares during the period. NVIDIA makes up approximately 4.3% of Mmbg Investment Advisors CO.’s investment portfolio, making the stock its 7th largest position. Mmbg Investment Advisors CO.’s holdings in NVIDIA were worth $54,472,000 at the end of the most recent quarter.

Other hedge funds have also bought and sold shares of the company. Bank of America Corp DE grew its position in shares of NVIDIA by 2.1% during the 1st quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker’s stock worth $33,345,453,000 after purchasing an additional 4,019,505 shares in the last quarter. Invesco Ltd. raised its position in shares of NVIDIA by 0.3% in the fourth quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker’s stock valued at $26,714,167,000 after buying an additional 446,178 shares in the last quarter. J. Stern & Co. LLP boosted its stake in shares of NVIDIA by 13,709.1% in the fourth quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock valued at $23,454,297,000 after buying an additional 124,849,603 shares during the period. Amundi boosted its stake in shares of NVIDIA by 10.4% in the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock valued at $23,329,141,000 after buying an additional 12,575,177 shares during the period. Finally, Deutsche Bank AG grew its position in NVIDIA by 2.3% during the second quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker’s stock worth $18,399,108,000 after buying an additional 2,045,101 shares in the last quarter. 65.27% of the stock is owned by institutional investors.

Insider Activity at NVIDIA In other NVIDIA news, CFO Colette Kress sold 34,918 shares of the business’s stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total value of $7,648,787.90. Following the transaction, the chief financial officer directly owned 765,103 shares of the company’s stock, valued at approximately $167,595,812.15. The trade was a 4.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy S. Teter sold 30,460 shares of the stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $222.80, for a total value of $6,786,488.00. Following the transaction, the executive vice president owned 2,687,660 shares in the company, valued at $598,810,648. The trade was a 1.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,766,118 shares of company stock worth $399,450,353 in the last 90 days. Corporate insiders own 3.94% of the company’s stock.

NVIDIA Trading Up 1.3% NASDAQ:NVDA opened at $233.95 on Friday. The firm’s fifty day moving average is $218.74 and its 200-day moving average is $207.48. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. NVIDIA Corporation has a 52 week low of $164.27 and a 52 week high of $237.88. The firm has a market cap of $5.64 trillion, a P/E ratio of 29.58, a P/E/G ratio of 1.78 and a beta of 2.22. NVIDIA (NASDAQ:NVDA – Get Free Report) last released its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.13. The business had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. NVIDIA’s revenue for the quarter was up 105.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.05 earnings per share. Equities analysts expect that NVIDIA Corporation will post 9.25 earnings per share for the current year.

NVIDIA declared that its Board of Directors has initiated a stock buyback program on Monday, September 28th that authorizes the company to buyback $150.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

NVIDIA Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA’s payout ratio is currently 12.64%.

Analyst Ratings Changes A number of research firms have commented on NVDA. Rothschild & Co Redburn raised their price objective on NVIDIA from $300.00 to $325.00 in a research note on Thursday, August 27th. Piper Sandler assumed coverage on NVIDIA in a report on Wednesday, September 9th. They set an “overweight” rating and a $300.00 target price on the stock. Itau BBA Securities dropped their price target on NVIDIA from $256.00 to $218.00 in a research note on Wednesday, June 24th. HSBC increased their price objective on shares of NVIDIA from $360.00 to $365.00 in a research note on Thursday, August 27th. Finally, Benchmark reissued a “buy” rating and issued a $335.00 target price on shares of NVIDIA in a report on Thursday, August 27th. Four equities research analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, NVIDIA presently has an average rating of “Buy” and a consensus price target of $320.71.

View Our Latest Stock Report on NVDA

More NVIDIA News Here are the key news stories impacting NVIDIA this week:

Positive Sentiment: Morgan Stanley named NVIDIA its top semiconductor pick, maintaining an Overweight rating and setting a $300 price target. The firm believes NVIDIA’s software ecosystem, scale and positioning across AI infrastructure trends give it a durable competitive moat. Morgan Stanley names NVIDIA a top pick Positive Sentiment: NVIDIA’s recently announced $150 billion buyback authorization lifts total remaining repurchase capacity to approximately $235 billion. Investors view the plan as a sign of management confidence and a potential source of per-share earnings support. NVIDIA buyback analysis Positive Sentiment: Analysts continue to raise expectations for hyperscaler spending, with Barclays estimating NVIDIA could generate $401 billion in hyperscaler revenue in 2027. CoreWeave’s launch of the Vera Rubin platform and additional enterprise customers also supports demand for NVIDIA’s next-generation systems. Barclays hyperscaler revenue estimate Neutral Sentiment: The broader semiconductor and technology complex is attracting buying interest as AI investment remains a major market leadership theme. However, NVIDIA’s valuation and substantial market concentration leave the stock sensitive to interest rates, economic data and shifts in institutional positioning. Negative Sentiment: Investors are monitoring reports that Amazon may move roughly $8 billion of NVIDIA chips off its balance sheet through leasing or financing structures. While this could improve customer flexibility, it adds scrutiny around AI infrastructure financing and so-called circular transactions. Amazon NVIDIA chip balance-sheet report Negative Sentiment: Export-control concerns remain a headline risk after prosecutors alleged a California man helped smuggle approximately $300 million of NVIDIA chips to China. Separately, Michael Burry warned that GPU depreciation could undermine the economics of the AI infrastructure boom, while Alphabet’s growing use of internally designed chips represents a longer-term competitive threat. NVIDIA chip smuggling prosecution NVIDIA Profile (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

Further Reading Five stocks we like better than NVIDIA AST SpaceMobile’s BlueBird Progress Comes With Several Risks Still Unresolved Time to Nibble on MCD Stock After it Enters Oversold Territory? McCormick Stock Trades Cheap, Offers Dividend Growth and Unilever Deal Upside Corning and AT&T’s $3 Billion Fiber Deal Reveals Where AI Spending Goes Next Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).

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