TLDR
- Nvidia stock fell 0.5% to $209.65 in premarket trading Monday as investors watched U.S.-Iran peace talks
- The stock is up 13% year to date and 46% over the past 12 months
- Last quarter, Nvidia posted EPS of $1.87, beating estimates, with revenue up 85.2% year over year to $81.61 billion
- Wall Street consensus is “Buy” with an average price target of $305.67
- The company authorized an $80 billion share buyback and raised its quarterly dividend to $0.25
Nvidia stock fell 0.5% to $209.65 in premarket trading on Monday, pulling back after a 3% gain on Thursday. Markets were closed Friday for the Juneteenth holiday.
The dip came as investors kept an eye on U.S.-Iran peace talks. Renewed fighting in Lebanon has raised questions about whether negotiations will move forward.
Tech stocks have been sensitive to those talks. A successful deal could lower energy prices, ease inflation, and give the Federal Reserve room to cut interest rates — all of which would support spending on AI hardware.
Nasdaq 100 futures were broadly flat on Monday morning as markets waited for more clarity on the diplomatic front.
Nvidia opened at $210.69 on Monday. The stock has a 52-week range of $142.03 to $236.54 and a market cap of $5.10 trillion.
The stock carries a price-to-earnings ratio of 32.26 and a price-to-earnings-growth ratio of 0.47. Its beta sits at 2.22, making it one of the more volatile names in the large-cap space.
Strong Earnings Backdrop
Last quarter’s results were hard to argue with. Nvidia reported EPS of $1.87 for Q1, beating the $1.76 consensus estimate. Revenue came in at $81.61 billion, ahead of the $78.42 billion analysts had expected.
That revenue figure represents 85.2% growth year over year. In the same period last year, Nvidia posted EPS of just $0.81.
Return on equity came in at 96.94%, with a net margin of 62.97%. Sell-side analysts now forecast full-year EPS of $8.65.
The company also raised its quarterly dividend to $0.25, up from $0.01 previously. That equates to a $1.00 annualized dividend and a 0.5% yield, with payment set for June 26.
Nvidia’s board also approved an $80 billion share repurchase plan, allowing buybacks of up to 1.5% of outstanding stock.
Analyst Targets and Institutional Activity
Wall Street remains broadly bullish. Of 54 analysts tracked, 48 have a Buy rating, three have a Strong Buy, and three have a Hold. The consensus price target sits at $305.67 — roughly 45% above Monday’s premarket price.
Target prices range widely. Melius Research has the highest at $400, while Stifel Nicolaus sits at $282. Wells Fargo has an Overweight with a $315 target, and Jefferies is at $300.
On the institutional side, S Harris Financial Group opened a new position in Q4, buying 16,480 shares worth about $3.07 million. NVDA now makes up 2.9% of the firm’s portfolio. Institutional investors and hedge funds collectively own 65.27% of the stock.
There has been notable insider selling. Director Mark A. Stevens sold 500,000 shares on June 4 at an average price of $219.83, totaling about $109.9 million. That transaction was executed under a pre-arranged 10b5-1 plan.
Over the last 90 days, insiders have sold a total of 1,016,125 shares worth roughly $224.6 million. Insiders currently hold 3.94% of the stock.
NVDA’s 50-day moving average stands at $209.90 and its 200-day moving average at $192.47.
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