TLDR
- Nvidia now accounts for about 8% of the S&P 500’s market cap, near an all-time high
- The company reported Q2 revenue of $96.2 billion, up 106% year over year, beating estimates
- Nvidia sees 70% revenue growth for fiscal year 2028, above the 45% analysts expected
- Institutional investors own 65.27% of NVDA stock; insiders have sold roughly $299 million worth in 90 days
- Analysts give NVDA a “Moderate Buy” consensus with an average price target of $324.23
Nvidia (NVDA) stock opened at $220.60 on Tuesday and is up over 3% on the day, as the company continues to rewrite the record books in terms of market influence.
At a market cap of $5.4 trillion, Nvidia now makes up roughly 8% of the S&P 500, near the highest proportion ever recorded, according to data from Augur Infinity. That puts its value above five of the index’s 11 sectors combined, including energy, utilities, real estate, and materials.
“Nvidia is making history,” strategists at The Kobeissi Letter said.
The company reported fiscal Q2 earnings on August 26. Adjusted EPS came in at $2.22, beating the $2.09 consensus. Revenue hit $96.22 billion, topping the $92.27 billion analysts had pencilled in.
Revenue was up 105.9% compared to the same quarter last year. A year ago, Nvidia posted EPS of $1.05.
Data Center revenue, covering Hyperscalers, AI Clouds, Industrial, and Enterprise, came in at $89 billion. That was ahead of the $85.8 billion estimate.
Edge Computing, which covers physical AI and gaming, brought in $7.2 billion against a $6.6 billion estimate.
Forward Guidance Stands Out
CEO Jensen Huang said the company expects around 70% revenue growth for fiscal year 2028. Analysts had been forecasting 45%. Huang added that growth could have topped 100% if not for memory chip supply shortages.
Analysts have been quick to update their targets. Benchmark set a $335 price target with a Buy rating. Morgan Stanley set a $300 target with an Overweight rating. Goldman Sachs reissued a Neutral rating with a $300 target, raised from $285. The average price target across analysts sits at $324.23, with a “Moderate Buy” consensus.
Nvidia also has an $80 billion share buyback plan approved by its board, and a quarterly dividend of $0.25 per share is set for October 1, with a record date of September 10.
Institutional Buying and Insider Selling
Institutional investors own 65.27% of NVDA. Several firms added to positions in Q2. Aaron Wealth Advisors boosted its stake by over 114%, adding 353,630 shares. Decker Retirement Planning raised its position by 32.3%. Davis Capital Management lifted its stake by 22.4%.
ARK Invest purchased roughly $53 million of NVDA stock following the post-earnings dip, a move seen as a vote of confidence from Cathie Wood’s firm.
On the flip side, insiders have sold around 1.4 million shares worth $299.3 million over the past 90 days. Director Mark A. Stevens sold 885,000 shares on June 18 at an average price of $210.17, reducing his stake by 14.53%.
Nvidia also announced a $3.5 billion investment in MediaTek, expanding their partnership across data center, edge computing, and automotive AI. Anthropic reportedly signed a $35 billion cloud agreement backed by Nvidia infrastructure.
The stock has a 12-month range of $164.07 to $236.54, with a 50-day moving average of $208.33 and a 200-day moving average of $201.08.
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