TLDR
- Nvidia stock jumped 3.2% to $183.78 after a U.S.-Iran cease-fire deal sparked a broad market rally
- The two-week deal requires Iran to reopen the Strait of Hormuz immediately
- S&P 500 futures rose 2.5% on the news
- Donaldson Capital Management increased its NVDA stake by 5.5% in Q4, holding ~$16.7M worth of stock
- Analysts hold an average “Buy” rating with a consensus price target of $275.25
Nvidia stock got a lift Wednesday morning as news of a two-week U.S.-Iran cease-fire sent markets higher. The chip maker’s stock climbed 3.2% to $183.78 ahead of the opening bell.
The deal between Washington and Tehran halts attacks for two weeks. The key condition: Iran must immediately reopen the Strait of Hormuz.
S&P 500 futures rose 2.5% on the back of the agreement. The news eased geopolitical pressure that had been weighing on tech stocks, including Nvidia.
It’s been a bumpy stretch for NVDA. The stock has a 12-month range of $94.46 to $212.19, and prior headlines had flagged Iran as a direct threat to Nvidia â making Wednesday’s cease-fire bounce particularly pointed.
Nvidia’s 50-day moving average sits at $182.03, and its 200-day at $184.35. The company carries a market cap of $4.33 trillion and a P/E ratio of 36.35.
On the institutional side, Donaldson Capital Management raised its Nvidia position by 5.5% in Q4, adding 4,663 units to hold 89,756 worth roughly $16.74 million. Several other funds also opened or grew positions in recent quarters.
Institutional investors and hedge funds collectively own 65.27% of NVDA stock.
Earnings Hold Strong
Nvidia’s last earnings report, released February 25th, came in ahead of expectations. The company posted $1.62 EPS versus the $1.54 consensus estimate.
Revenue hit $68.13 billion for the quarter, topping estimates of $65.56 billion. That was a 73.2% jump year-over-year.
Net margin came in at 55.60%, with return on equity at 97.37%. Analysts now expect full-year EPS of $2.77.
Nvidia also paid a quarterly dividend of $0.01 per share on April 1st, representing a $0.04 annualized yield.
Insider Selling Continues
Not everyone is loading up. Insiders have sold roughly 1.2 million units worth approximately $216 million over the past 90 days.
Director John Dabiri sold 3,004 units on March 13th at $184.90 each, cutting his position by 16.88%. Director Aarti S. Shah followed with a sale of 19,000 units on March 19th at $176.71 â a 34.54% reduction in her stake.
Insiders now hold 4.17% of the company.
Wall Street, though, remains broadly bullish. Of 53 analysts covering the stock, 47 have a Buy rating, four a Strong Buy, and just two a Hold.
Price targets range widely: Fundamental Research sits at $218, while HSBC has set a $310 target. The consensus lands at $275.25.
Supply chain concerns remain in the background, with some reports flagging potential production cuts tied to memory constraints â a factor worth watching in the coming weeks.
Considering a new stock? You may want to see whatâs on our watchlist first.
Our team at Knockout Stocks follows top-performing analysts and market-moving trends to spot potential winners early. Weâve identified five stocks gaining quiet attention that could be worth watching now. Create your free account to unlock the full report and get ongoing stock insights.Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
