NVIDIA (NASDAQ:NVDA) Stock Falls 1.4% – Should You Sell?

Shares of NVIDIA Corporation (NASDAQ:NVDA) dropped 1.4% during mid-day trading on Friday. The stock traded as low as $213.32 and last traded at $214.13. Approximately 119,932,706 shares traded hands during trading, a decline of 21% from the average daily volume of 151,331,641 shares. The stock had previously closed at $217.23.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: New RTX Spark laptops expand NVIDIA’s addressable market. Systems from ASUS, Dell, HP, Lenovo, Microsoft and MSI are now available starting at $2,599, combining Blackwell graphics, up to 128GB of memory and local AI capabilities. The launch could create a new consumer and developer revenue stream beyond data centers. NVIDIA RTX Spark PCs Available Today
• Positive Sentiment: Automotive and enterprise adoption continues. Volvo expanded its partnership with NVIDIA for automated-driving systems, while Adobe is integrating NVIDIA technology across Photoshop, Premiere and other creative tools. These agreements support longer-term demand for NVIDIA hardware and software. Volvo Cars expands automated driving partnership
• Positive Sentiment: Supply-chain investment and customer deployments remain strong. Taiwan is reportedly considering as much as $4 billion for Texas industrial parks serving NVIDIA suppliers, and customers continue deploying Blackwell systems. The developments reinforce demand, although they may take time to affect revenue. Taiwan Texas industrial parks
• Neutral Sentiment: NVIDIA is broadening its software and AI-model ecosystem. Paid offerings such as AI Enterprise and Mission Control, along with Nemotron open models and partnerships with AI startups, could make earnings less dependent on hardware. However, the articles provide no near-term financial contribution.
• Negative Sentiment: AI financing concerns are the main pressure. CoreWeave’s debt has reportedly traded at distressed yields, raising questions about whether highly leveraged customers can continue funding data-center expansion. Higher Treasury yields and inflation concerns are also making large AI projects more expensive. CoreWeave financing worries
• Negative Sentiment: Investors are questioning AI growth expectations. OpenAI’s reported $50 billion revenue run rate was below the roughly $68 billion previously anticipated, prompting concern that AI demand may mature more slowly. Microsoft’s development of custom Maia chips also highlights the risk of customers developing alternatives to NVIDIA GPUs. OpenAI revenue expectations
• Negative Sentiment: Reported insider selling adds a sentiment overhang. Recent data showed NVIDIA insiders made numerous sales and no open-market purchases over the past six months, though such transactions may reflect planned diversification rather than a change in business outlook.

Analysts Set New Price Targets

NVDA has been the subject of a number of recent analyst reports. Truist Financial boosted their price objective on NVIDIA from $307.00 to $346.00 and gave the company a “buy” rating in a research report on Thursday, August 27th. Needham & Company LLC reiterated a “buy” rating and issued a $300.00 price objective on shares of NVIDIA in a report on Friday, September 4th. Wells Fargo & Company set a $210.00 price target on NVIDIA in a report on Friday, October 2nd. Morgan Stanley set a $230.00 target price on NVIDIA in a research note on Friday, October 2nd. Finally, Melius Research set a $420.00 price target on shares of NVIDIA in a research note on Thursday, August 27th. Five research analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Buy” and an average target price of $321.89.

NVIDIA Stock Performance

The stock’s 50-day simple moving average is $223.20 and its 200 day simple moving average is $211.10. The company has a market capitalization of $5.16 trillion, a PE ratio of 27.07, a P/E/G ratio of 1.65 and a beta of 2.22. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.13. The business had revenue of $96.22 billion during the quarter, compared to analysts’ expectations of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company’s revenue for the quarter was up 105.9% on a year-over-year basis. During the same period in the previous year, the company earned $1.05 EPS. As a group, research analysts expect that NVIDIA Corporation will post 9.30 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were paid a $0.25 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is currently 12.64%.

NVIDIA announced that its board has authorized a share buyback plan on Monday, September 28th that allows the company to buy back $150.00 billion in shares. This repurchase authorization allows the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other news, CFO Colette Kress sold 34,918 shares of the company’s stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the completion of the transaction, the chief financial officer directly owned 765,103 shares of the company’s stock, valued at approximately $167,595,812.15. This represents a 4.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of the stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the transaction, the director owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,766,118 shares of company stock valued at $399,450,353 in the last ninety days. Insiders own 3.94% of the company’s stock.

Hedge Funds Weigh In On NVIDIA

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. State Street Corp lifted its position in NVIDIA by 1.6% in the second quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker’s stock valued at $202,047,568,000 after acquiring an additional 15,897,836 shares during the last quarter. Bank of America Corp DE boosted its position in shares of NVIDIA by 2.2% in the 2nd quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker’s stock valued at $39,090,956,000 after purchasing an additional 4,165,875 shares during the period. Amundi grew its stake in NVIDIA by 10.4% during the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after buying an additional 12,575,177 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in NVIDIA by 0.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker’s stock worth $16,479,126,000 after buying an additional 555,221 shares during the last quarter. Finally, Deutsche Bank AG increased its position in NVIDIA by 2.3% during the second quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker’s stock worth $18,399,108,000 after buying an additional 2,045,101 shares during the period. 65.27% of the stock is owned by institutional investors and hedge funds.

NVIDIA Company Profile

NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.

The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.