NVIDIA (NVDA) Stock Price, News & Analysis

Company Overview

NVIDIA Corporation ranks among the world’s leading microchip manufacturers and is best known for its contributions in the fields of graphics and gaming. Its chips and related software power the fastest, highest-resolution graphics and are featured in a line of products that include solutions for all end-market uses. Along with gaming, NVIDIA microchips are used in visualization, datacenter, AI, and autonomous vehicles just to name a few.

NVIDIA was founded in 1993 by three friends and is headquartered in Santa Clara, California. The company was intended to focus on chips for the budding gaming and entertainment industry that was spawned by the rise of the personal computer and the Internet. At the time of its founding, there were less than 30 graphics-focused independent operators and that figure would more than double over the next few years.

NVIDIA launched its first product in 1995 called the NV1 and paved the way for 3-D games like Sega’s Virtual Fighter. The next big break came in 1996 with the launch of Microsoft DirectX Drivers which changed how Windows interfaced with games. The next year, in 1997, the company will release the world’s first 128-bit 3-D processor. It quickly gains acceptance gaming OEMs and more than 1 million units are shipped the first four months. Later, in 199, the company will invet the GPU and change the world of computing forever. The GPU will not only enhance the graphics capabilities of the PC but lead to accelerated-computing and AI as well. NVIDIA also held its IPO that same year.

Founders Jensen Huang and Chris Malachowsky are still in leadership positions. Mr. Huang has served as the company’s CEO, president, and board member since the company’s founding. Mr. Malachowsky serves as a member of the company’s executive staff and is a senior technology executive.

Today, NVIDIA Corporation is the only remaining independently operating graphics-focused microchip company in operation. The company’s business has evolved from the core gaming-oriented business to include graphics-oriented computing, and networking solutions in the United States, Taiwan, China, and internationally but gaming is still a pillar of the business.

NVIDIA’s Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and software solutions for gaming platforms.  The company also offers the Quadro/NVIDIA RTX GPUs for enterprise-level workstation graphics, the vGPU software for cloud-based visual and virtual computing, and entertainment platforms for OEM auto manufacturers, and Omniverse software for 3-D world-building.

NVIDIA’s Compute & Networking segment provides a wide range of solutions for interconnect, AI/autonomous driving, cryptocurrency mining, robotics, Data Center platforms and accelerated computing. Products include Mellanox for networking and interconnect, Jetson for robotics and embedded applications, and AI Enterprise software among others.

Written by Jeffrey Neal Johnson

Key Stats

• Today's Range: $134.57 to $137.31
• 50-Day Range: $102.83 to $143.71
• 52-Week Range: $42.89 to $144.42
• Volume: 203.03 million shs
• Average Volume: 409.01 million shs
• Market Capitalization: $3.32 trillion
• P/E Ratio: 63.51
• Dividend Yield: 0.03%
• Price Target: $143.07
• Consensus Rating: Moderate Buy

NVIDIA Stock Analysis - MarketRank™

NVIDIA scored higher than 92% of companies evaluated by MarketBeat, and ranked 88th out of 667 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.5 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

NVIDIA has received a consensus rating of Moderate Buy. The company's average rating score is 2.95, and is based on 37 buy ratings, 4 hold ratings, and no sell ratings.

Amount of Analyst Coverage

NVIDIA has been the subject of 27 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 3.1 / 5
• Proj. Earnings Growth: 33.21%

Earnings Growth

Earnings for NVIDIA are expected to grow by 33.21% in the coming year, from $2.65 to $3.53 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of NVIDIA is 63.51, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 131.18.

Price to Earnings Ratio vs. Sector

The P/E ratio of NVIDIA is 63.51, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 264.90.

Price to Earnings Growth Ratio

NVIDIA has a PEG Ratio of 1.47. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

NVIDIA has a P/B Ratio of 78.72. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

1.04% of the outstanding shares of NVIDIA have been sold short.

Short Interest Ratio / Days to Cover

NVIDIA has a short interest ratio ("days to cover") of 0.8, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in NVIDIA has recently increased by 1.89%, indicating that investor sentiment is decreasing.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Yield

NVIDIA has a dividend yield of 0.03%, which is in the bottom 25% of all stocks that pay dividends.

Dividend Growth

NVIDIA does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of NVIDIA is 1.88%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, NVIDIA will have a dividend payout ratio of 1.13% next year. This indicates that NVIDIA will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 3.0 / 5
• Environmental Score: -1.26

Percentage of Shares Shorted

1.04% of the outstanding shares of NVIDIA have been sold short.

Short Interest Ratio / Days to Cover

NVIDIA has a short interest ratio ("days to cover") of 0.8, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in NVIDIA has recently increased by 1.89%, indicating that investor sentiment is decreasing.

News and Social Media

• Score: 1.9 / 5
• News Sentiment: 0.41

News Sentiment

NVIDIA has a news sentiment score of 0.41. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This news sentiment score is similar to the average news sentiment of Computer and Technology companies.

News Coverage This Week

MarketBeat has tracked 109 news articles for NVIDIA this week, compared to 131 articles on an average week.

Search Interest

Only 825 people have searched for NVDA on MarketBeat in the last 30 days. This is a decrease of -13% compared to the previous 30 days.

MarketBeat Follows

538 people have added NVIDIA to their MarketBeat watchlist in the last 30 days. This is an increase of 12% compared to the previous 30 days.

Company Ownership

• Score: 2.5 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, NVIDIA insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $291,803,127.00 in company stock.

Percentage Held by Insiders

Only 4.23% of the stock of NVIDIA is held by insiders.

Percentage Held by Institutions

65.27% of the stock of NVIDIA is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

NVDA Stock Analysis - Frequently Asked Questions

How have NVDA shares performed this year?

NVIDIA's stock was trading at $49.5220 at the beginning of 2024. Since then, NVDA stock has increased by 173.4% and is now trading at $135.40.
View the best growth stocks for 2024 here.

How were NVIDIA's earnings last quarter?

NVIDIA Co. (NASDAQ:NVDA) issued its earnings results on Wednesday, August, 28th. The computer hardware maker reported $0.68 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.64 by $0.04. The firm's revenue for the quarter was up 122.4% on a year-over-year basis.
Read the conference call transcript.

When did NVIDIA's stock split?

NVIDIA shares split on the morning of Monday, June 10th 2024. The 10-1 split was announced on Monday, June 10th 2024. The newly issued shares were payable to shareholders after the closing bell on Monday, June 10th 2024. An investor that had 100 shares of stock prior to the split would have 1,000 shares after the split.

How will NVIDIA's stock buyback program work?

NVIDIA's Board of Directors approved a stock buyback plan on Wednesday, August 28th 2024, which permits the company to buy back $50,000,000,000 in shares, according to EventVestor. This means that the company could purchase up to 1.6% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's board of directors believes its shares are undervalued.

Does NVIDIA have any subsidiaries?

NVIDIA subsidiaries include Excelero Storage, Bright Computing, DeepMap, Arm Holdings, Cumulus Networks, SwiftStack, Parabricks, and more.

Who are NVIDIA's major shareholders?

NVIDIA's top institutional shareholders include IMC Chicago LLC, International Assets Investment Management LLC (0.23%), National Pension Service (0.19%) and Van ECK Associates Corp (0.18%). Insiders that own company stock include Jen Hsun Huang, Mark A Stevens, Harvey C Jones, Tench Coxe, Colette Kress, Ajay K Puri, Corp Nvidia, Debora Shoquist, Mark L Perry, Dawn E Hudson, Donald F Robertson Jr, John Dabiri and Persis Drell.
View institutional ownership trends.

How do I buy shares of NVIDIA?

Shares of NVDA stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of NVIDIA own?

Based on aggregate information from My MarketBeat watchlists, some other companies that NVIDIA investors own include JPMorgan Chase & Co. (JPM), AbbVie (ABBV), Verizon Communications (VZ), Meta Platforms (META), Vanguard Short-Term Inflation-Protected Securities ETF (VTIP), Pembina Pipeline (PBA) and Advanced Micro Devices (AMD).

Company Calendar

• Last Earnings: 8/28/2024
• Ex-Dividend for 10/3 Dividend: 9/12/2024
• Dividend Payable: 10/03/2024
• Today: 11/01/2024
• Next Earnings (Confirmed): 11/20/2024
• Fiscal Year End: 1/31/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Computer and Technology
• Industry: Semiconductors & related devices
• Sub-Industry: Semiconductors
• Current Symbol: NASDAQ:NVDA
• Previous Symbol: NASDAQ:NVDA
• CUSIP: 67066G10
• CIK: 1045810
• Web: www.nvidia.com
• Phone: (408) 486-2000
• Fax: 408-486-2200
• Employees: 29,600
• Year Founded: 1993

Price Target and Rating

• Average Stock Price Target: $143.07
• High Stock Price Target: $200.00
• Low Stock Price Target: $65.00
• Potential Upside/Downside: +5.7%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.95
• Research Coverage: 43 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $2.1320
• Trailing P/E Ratio: 63.51
• Forward P/E Ratio: 51.09
• P/E Growth: 1.47
• Net Income: $29.76 billion
• Net Margins: 55.04%
• Pretax Margin: 63.47%
• Return on Equity: 113.50%
• Return on Assets: 73.83%

Debt

• Debt-to-Equity Ratio: 0.15
• Current Ratio: 4.27
• Quick Ratio: 3.79

Sales & Book Value

• Annual Sales: $60.92 billion
• Price / Sales: 54.52
• Cash Flow: $1.21 per share
• Price / Cash Flow: 112.31
• Book Value: $1.72 per share
• Price / Book: 78.72

Miscellaneous

• Outstanding Shares: 24,530,000,000
• Free Float: 23,492,381,000
• Market Cap: $3.32 trillion
• Optionable: Optionable
• Beta: 1.67