TLDR
- Nvidia stock is up 4.30% and hit a new record high, pushing its market cap past $5 trillion
- The company expects at least $1 trillion in AI chip revenue in both 2026 and 2027
- Forward P/E ratio has dropped to 24 as earnings growth outpaces the stock price
- Insiders sold nearly $171 million worth of stock last quarter, though institutional ownership remains at 65.27%
- Analyst consensus sits at “Buy” with an average price target of $275.25
Nvidia closed at a record high on Friday, with the stock up 4.30% to $208.24, pushing its market cap past $5.06 trillion. That follows a chip-sector rally partly fueled by Intel’s earnings and strong momentum in the SOXX index.
NVIDIA Corporation, NVDA
The stock opened at $208.28 and touched an intraday high of $210.94. Its 12-month range runs from $104.08 to $212.19, meaning the stock has nearly doubled off its lows.
Call-option activity was notably bullish on Friday. Around 3.87 million NVDA calls traded — roughly 52% above typical call volume — pointing to traders positioning for further gains.
Nvidia last reported earnings on February 25. The company posted EPS of $1.62, beating the $1.54 consensus estimate. Revenue came in at $68.13 billion, topping expectations of $65.56 billion and up 73.2% year over year.
AI Revenue Targets and Valuation
Nvidia has told investors it expects at least $1 trillion in AI chip revenues in both 2026 and 2027. With earnings growth outpacing the stock price over recent months, the forward P/E has compressed to 24 — down from much higher levels earlier in the cycle.
That’s a low multiple for a company growing revenue at this pace. Net margin sits at 55.60% and return on equity is 97.37%.
The company’s 50-day moving average is $184.84 and its 200-day moving average is $185.54, meaning the stock is trading well above both trend lines.
To address competition from custom chips — Broadcom flagged last month that its ASICs could eventually overtake traditional GPUs in data centers — Nvidia has developed its Vera Rubin rack-scale architecture. The system combines a GPU, CPU, memory, and interconnects in a single purpose-built design for AI inferencing workloads.
Physical AI, which covers robotics, autonomous vehicles, and manufacturing applications, currently makes up less than 3% of Nvidia’s revenue.
Institutional Activity and Insider Selling
Venturi Wealth Management increased its NVDA stake by 9.2% in Q4, bringing its holding to 314,078 shares worth approximately $58.6 million. NVDA is now the firm’s seventh-largest position at about 2.6% of its portfolio.
Institutional investors hold 65.27% of the stock overall.
On the insider side, Director Mark A. Stevens sold 221,682 shares at an average of $173.68 on March 20, totaling around $38.5 million. EVP Ajay K. Puri sold 300,000 shares at $182.25 on March 18, worth roughly $54.7 million. Total insider sales last quarter came to 953,976 shares valued at $171.2 million. Insiders now own 4.17% of the stock.
On the analyst front, 48 analysts currently rate NVDA a Buy, four give it a Strong Buy, and two have it at Hold. The consensus price target is $275.25. HSBC has a $310 target and Tigress Financial has a $360 target, the highest on the Street.
Nvidia also declared a quarterly dividend of $0.01 per share, paid April 1, representing a yield of roughly 0.02%.
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