Back to top

Analyst Blog

NVIDIA Corporation (NVDA - Analyst Report) has extended its 2004 share repurchase plan and initiated a quarterly cash dividend.

The company had announced that it would extend its existing $2.7 billion share-repurchase program to December 2014. Under the existing program, Nvidia has so far bought back 90.9 million shares for $1,46 billion, representing an average share price of $16 per share. Thus the company is paying a premium of 30%-31% to its current share price.

The working capital will be used by the company for this repurchase. The company has a cash and cash equivalent balance of $3.4 billion.

In its fourth quarter 2013 guidance, the company also declared that it was initiating the payment of a quarterly cash dividend. Moreover, Nvidia took a step in the right direction last week. The company has taken a decision to initiate a quarterly dividend of 7.5 cents per share, and will extend the share repurchase authorization to the end of 2014.

The company expects revenue to be in the range of $1.025 billion and $1.175 billion. GAAP and non-GAAP gross margins are expected to be remain flat sequentially at 52.9% and 53.1%, respectively.

During the third quarter, the company witnessed strong demand for the company’s Kepler GPU products and shipments of new Kepler-based Tesla products improved sequentially.

On the other hand, NVIDIA’s performance may be slightly hampered by the economic slowdown in Europe. Moreover, advanced chips developed by Intel Corp. (INTC - Analyst Report) and Advanced Micro Devices Inc. (AMD - Analyst Report) may increase competition for the company.

Currently, NVIDIA has a Zacks #3 Rank (short-term Hold).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SIGNET JEWE… SIG 116.37 +7.72%
CHYRONHEGO… CHYR 2.72 +5.84%
US SILICA H… SLCA 70.72 +4.00%
MALLINCKROD… MNK 80.11 +2.32%
RF MICRO DE… RFMD 11.76 +2.31%