NVIDIA (NASDAQ:NVDA) Shares Down 2.9% Following Analyst Downgrade

NVIDIA Corporation (NASDAQ:NVDA) traded down 2.9% on Monday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $207.25 and last traded at $208.48. 131,755,300 shares were traded during mid-day trading, a decline of 17% from the average session volume of 158,708,922 shares. The stock had previously closed at $214.72.

Other analysts also recently issued reports about the company. Tigress Financial reiterated a “strong-buy” rating and issued a $425.00 price target (up from $360.00) on shares of NVIDIA in a report on Wednesday, May 27th. DZ Bank reissued a “buy” rating on shares of NVIDIA in a research report on Thursday, May 21st. JPMorgan Chase & Co. increased their price objective on shares of NVIDIA from $265.00 to $280.00 and gave the company an “overweight” rating in a research report on Thursday, May 21st. Evercore reaffirmed an “outperform” rating and set a $413.00 price target (up from $352.00) on shares of NVIDIA in a report on Thursday, May 21st. Finally, Sanford C. Bernstein reiterated a “buy” rating on shares of NVIDIA in a report on Monday, June 29th. Two equities research analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $308.46.

Insiders Place Their Bets

In other news, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the transaction, the director directly owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Stephen C. Neal sold 15,500 shares of the company’s stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total value of $3,343,815.00. Following the transaction, the director directly owned 116,135 shares of the company’s stock, valued at $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 1,900,500 shares of company stock worth $410,449,265 over the last three months. 3.94% of the stock is owned by corporate insiders.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s new Groq 3 LPX inference accelerator is now in full production and delivered record benchmark performance for agentic AI workloads. Nebius will be the first AI cloud provider to deploy it, strengthening NVIDIA’s position in high-growth inference applications. NVIDIA Groq 3 LPX Now in Full Production
• Positive Sentiment: NVIDIA also announced the Jetson Orin Nano 2 robotics computer, offering twice the inference performance of its predecessor at 40% lower power consumption. The product expands NVIDIA’s reach into robotics, drones and edge AI. NVIDIA Announces Jetson Orin Nano 2
• Positive Sentiment: Several firms remain bullish, including KeyCorp, Cantor Fitzgerald and Rosenblatt. Raymond James raised its price target to $352, while the broader median target cited in the coverage is $308.50, implying substantial potential upside if growth continues.
• Positive Sentiment: Analysts expect another record quarter, with revenue estimates around $92 billion to $97.8 billion and roughly 95% year-over-year growth. Continued hyperscaler demand, the Vera Rubin ramp and NVIDIA’s AI financing platform could support future orders.
• Neutral Sentiment: Wednesday combines NVIDIA’s earnings with second-quarter GDP and the July PCE inflation report. Weak growth or persistent inflation could increase market volatility and affect technology valuations broadly. Nvidia Earnings, Inflation and GDP
• Neutral Sentiment: Options markets imply an unusually large post-earnings move, reflecting elevated expectations and risk rather than a clear directional signal.
• Negative Sentiment: The stock has declined for seven consecutive sessions, and history shows that NVIDIA shares often fall after earnings even when results exceed estimates. The market may demand guidance materially above consensus.
• Negative Sentiment: Investors are scrutinizing NVIDIA’s stakes, guarantees and financing commitments across the AI ecosystem, including its reported SpaceX position and large AI infrastructure financing plans. Critics warn these arrangements could create counterparty and “circular financing” risks.
• Negative Sentiment: Potential server price increases of more than 15% due to higher memory costs could pressure customers and give rivals such as AMD, Google and custom-chip providers an opportunity to gain share. OpenAI-related testing has also highlighted growing competition in inference hardware.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Lifetime Wealth Management P.C. acquired a new position in NVIDIA in the fourth quarter worth approximately $26,000. Longview Financial Advisors Inc. acquired a new stake in NVIDIA during the first quarter worth $27,000. Montgomery Financial Services LLC acquired a new stake in NVIDIA during the second quarter valued at approximately $28,000. Longfellow Investment Management Co. LLC raised its stake in NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after acquiring an additional 67 shares in the last quarter. Finally, Langley Wealth Management LLC acquired a new stake in shares of NVIDIA during the second quarter worth approximately $34,000. 65.27% of the stock is owned by hedge funds and other institutional investors.

NVIDIA Trading Up 2.2%

The company’s 50-day moving average is $207.50 and its 200-day moving average is $200.09. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The firm has a market cap of $5.16 trillion, a price-to-earnings ratio of 32.63, a P/E/G ratio of 0.41 and a beta of 2.23.

NVIDIA announced that its Board of Directors has approved a share repurchase program on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in shares. This buyback authorization authorizes the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

About NVIDIA

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.