TLDR:
- NVDA stock currently trading around $145, near all-time highs after 10-for-1 split in June 2024
- Bank of America raised price target to $190, with most analysts maintaining “buy” ratings
- Stock down 1.3% in recent trading, with heavy volume of 67.2M shares
- Company reported $30.04B revenue last quarter, up 122.4% year-over-year
- Nvidia expanding AI initiatives globally, particularly in India and through partnerships like xAI’s Colossus supercomputer project
Nvidia (NVDA) is trading near $145 per share, hovering close to all-time highs following its 10-for-1 stock split executed in June 2024. The split reduced the share price from approximately $1,200 to $120, making the stock more accessible to retail investors.
Trading volume remains robust, with over 67 million shares changing hands in recent sessions, though this represents a decline from the average daily volume of 410 million shares. The stock experienced a modest decline of 1.3% in Wednesday’s trading session, touching a low of $136.81 before settling at $139.37.
The company’s financial performance continues to impress analysts and investors alike. In its most recent quarterly report, Nvidia posted revenue of $30.04 billion, marking a substantial year-over-year increase of 122.4%. The company exceeded analyst expectations, reporting earnings per share of $0.68 compared to consensus estimates of $0.64.
Wall Street maintains a largely bullish stance on NVDA stock. Bank of America recently raised its price target to $190 per share from $165, while maintaining a “buy” rating. Raymond James also expressed optimism, increasing its target to $140 with a “strong-buy” recommendation.
The company’s global expansion efforts continue to gain momentum, particularly in India. Nvidia reports that Indian cloud infrastructure firms are on track to increase their GPU deployment by nearly tenfold compared to 18 months ago. This expansion reflects growing demand for AI computing capabilities in the region.
Nvidia’s partnership initiatives are also advancing. The company recently announced its role in powering xAI’s Colossus supercomputer cluster, which utilizes 100,000 Nvidia Hopper GPUs and the company’s Spectrum-X Ethernet networking platform.
In the financial technology sector, Nvidia has launched a new AI workflow for fraud detection in partnership with Amazon Web Services (AWS). This solution aims to help financial institutions combat credit card fraud, which is projected to cause $43 billion in global losses by 2026.
The company maintains strong institutional backing, with 65.27% of shares held by institutional investors and hedge funds. Recent insider activity shows some selling, with director Tench Coxe disposing of 1,000,000 shares at $119.27 per share.
Nvidia’s dividend policy remains conservative, with a quarterly payment of $0.01 per share, representing a yield of 0.03%. The company has authorized a $50 billion share buyback program, equivalent to approximately 1.6% of outstanding shares.
The company’s market capitalization stands at $3.44 trillion, with key financial metrics including a price-to-earnings ratio of 65.43 and a price-to-earnings-growth ratio of 1.50. Nvidia maintains a solid balance sheet with a debt-to-equity ratio of 0.15.
Looking ahead, analysts project continued growth. Wall Street forecasts revenue of $32.9 billion for the upcoming quarter, representing an 82% year-over-year increase. Earnings per share are expected to reach $0.74, an 85% improvement from the previous year.
Nvidia’s stock performance metrics show a 50-day simple moving average of $124.74 and a 200-day simple moving average of $115.18. The stock maintains a beta of 1.67, indicating higher volatility compared to the broader market.
The company is scheduled to report its next quarterly earnings on November 20, 2024. This upcoming report will be closely watched by investors as an indicator of continued momentum in the AI chip sector.
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