Nvidia (NVDA) Stock Reaches All-Time High — and Analysts Argue It Remains Cheap

TLDR

• Nvidia shares rose 4.30% to a new all-time high, elevating its market capitalization above $5 trillion.
• The company anticipates generating a minimum of $1 trillion in AI chip revenue for both 2026 and 2027.
• The forward price-to-earnings ratio has fallen to 24 as profit growth has exceeded the rise in the share price.
• Company insiders sold stock worth nearly $171 million last quarter, while institutional investors maintain a 65.27% stake.
• Analysts’ consensus recommendation is a “Buy,” with an average price target of $275.25.

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(SeaPRwire) –   Nvidia reached a record closing price on Friday, advancing 4.30% to $208.24 and boosting its market cap beyond $5.06 trillion. This move came amid a semiconductor sector rally driven in part by Intel’s earnings and robust momentum in the SOXX index.

NVIDIA Corporation, NVDA

The stock began trading at $208.28 and reached an intraday peak of $210.94. Its price over the past year has fluctuated between $104.08 and $212.19, indicating the shares have almost doubled from their low point.

Friday’s call-option trading was particularly optimistic. Approximately 3.87 million NVDA call options changed hands — about 52% more than the average call volume — suggesting traders are betting on continued price appreciation.

Nvidia’s most recent earnings report was on February 25. The company announced earnings per share of $1.62, surpassing the consensus estimate of $1.54. Revenue totaled $68.13 billion, exceeding forecasts of $65.56 billion and marking a 73.2% increase from the previous year.

AI Revenue Targets and Valuation

Nvidia has informed investors that it projects at least $1 trillion in AI chip sales for both 2026 and 2027. As earnings growth has raced ahead of the stock’s price in recent months, the forward P/E multiple has contracted to 24, a decline from significantly higher figures earlier in the cycle.

This is considered a low valuation multiple for a firm expanding its revenue so rapidly. The net margin stands at 55.60%, and the return on equity is 97.37%.

The share price is currently trading substantially above its key trend lines, with the 50-day moving average at $184.84 and the 200-day moving average at $185.54.

In response to competition from custom chips — after Broadcom indicated last month that its ASICs might eventually surpass traditional GPUs in data centers — Nvidia has created its Vera Rubin rack-scale architecture. This integrated system merges a GPU, CPU, memory, and interconnects into a single, specialized design for AI inferencing tasks.

Physical AI, encompassing robotics, self-driving vehicles, and industrial applications, currently accounts for under 3% of Nvidia’s total revenue.

Institutional Activity and Insider Selling

Venturi Wealth Management raised its NVDA holding by 9.2% in the fourth quarter, amassing 314,078 shares valued at around $58.6 million. NVDA is now the firm’s seventh-largest investment, constituting roughly 2.6% of its portfolio.

Overall, institutional investors own 65.27% of Nvidia’s stock.

Regarding insider transactions, Director Mark A. Stevens sold 221,682 shares at an average price of $173.68 on March 20, for a total of approximately $38.5 million. Executive Vice President Ajay K. Puri sold 300,000 shares at $182.25 on March 18, worth about $54.7 million. Total insider sales for the last quarter amounted to 953,976 shares with a value of $171.2 million. Insiders now possess 4.17% of the company’s shares.

Among analysts, 48 currently have a Buy rating on NVDA, four assign a Strong Buy, and two recommend Hold. The consensus price target is $275.25. HSBC has set a target of $310, while Tigress Financial’s $360 target is the highest among analysts.

Nvidia also announced a quarterly dividend of $0.01 per share, which was distributed on April 1, equating to an approximate yield of 0.02%.