NVIDIA (NASDAQ:NVDA) Stock Falls 4.4% – Time to Sell?

NVIDIA Corporation (NASDAQ:NVDA) was down 4.4% during mid-day trading on Thursday. The company traded as low as $211.26 and last traded at $212.21. 123,933,806 shares changed hands during mid-day trading, a decline of 18% from the average daily volume of 150,264,484 shares. The stock had previously closed at $221.97.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Several investment analyses remain bullish on NVIDIA’s long-term outlook. Its CUDA software ecosystem, scale, high margins and deep customer relationships are viewed as a stronger moat than competitors such as Broadcom and Lam Research. Some analysts believe the shares could still double over the next five to 10 years even if growth moderates. Prediction: Nvidia Will Outperform Broadcom Over the Next 5 Years
• Positive Sentiment: NVIDIA is broadening its opportunity beyond GPUs through CPUs, networking, AI factories, industrial AI, autonomous driving and quantum-computing interfaces. Partnerships involving Pony.ai, inDrive, Schneider Electric and HPE could support additional demand for its full-stack platform. Pony AI, NVIDIA Take Their Robotaxi Ambitions to a New Market
• Positive Sentiment: Erste Group modestly raised its fiscal 2027 and 2028 EPS forecasts, while other commentary highlights NVIDIA’s faster growth, stronger margins and relatively attractive valuation compared with some AI semiconductor peers. Brokers Suggest Investing in Nvidia
• Neutral Sentiment: Some analysts argue NVIDIA may become a relative “safe haven” within the AI trade because of its dependable earnings and dominant position, but this is an investor-rotation thesis rather than a new financial result or confirmed catalyst. Can Nvidia’s Stock Become a Safe Haven?
• Negative Sentiment: Seaport Research reiterated a bearish view, citing mounting competition, strategic tension in NVIDIA’s business and substantial financial commitments tied to the AI buildout. This bearish call is the clearest company-specific pressure on the shares. Two Critical Nvidia Stock Flaws
• Negative Sentiment: The recent decline reflects broader concern that hyperscalers and neocloud operators may struggle to finance the hundreds of billions of dollars required for AI data centers. High borrowing costs, funding gaps and possible customer spending discipline are pressuring the entire AI trade, including NVIDIA. Why Nvidia Stock Is Down Over 4%?

Analyst Ratings Changes

Several brokerages have weighed in on NVDA. KGI Securities lifted their price objective on NVIDIA from $335.00 to $345.00 in a report on Thursday, August 27th. TD Cowen reissued a “buy” rating on shares of NVIDIA in a research note on Tuesday, August 18th. Rothschild & Co Redburn boosted their price target on NVIDIA from $300.00 to $325.00 in a report on Thursday, August 27th. UBS Group reiterated a “buy” rating on shares of NVIDIA in a research report on Friday, October 9th. Finally, Citigroup reaffirmed a “buy” rating and set a $315.00 price target (up from $300.00) on shares of NVIDIA in a report on Thursday, August 27th. Five 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 company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus price target of $321.47.

NVIDIA Stock Down 0.6%

The firm has a market cap of $5.08 trillion, a price-to-earnings ratio of 26.67, a PEG ratio of 1.63 and a beta of 2.22. The firm has a 50 day moving average of $222.58 and a 200 day moving average of $212.56. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The firm had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. During the same quarter in the prior year, the business earned $1.05 earnings per share. The business’s quarterly revenue was up 105.9% compared to the same quarter last year. As a group, sell-side analysts predict that NVIDIA Corporation will post 9.30 earnings per share for the current year.

NVIDIA Announces Dividend

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

NVIDIA declared that its Board of Directors has authorized a share buyback program on Monday, September 28th that authorizes the company to buy back $150.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to purchase up to 2.8% of its stock through open market purchases. Share repurchase programs are generally a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling at NVIDIA

In related news, Director Mark A. Stevens sold 622,239 shares of the company’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the sale, the director directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, EVP Timothy S. Teter sold 30,460 shares of the firm’s stock in a transaction on Monday, September 21st. The stock was sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the transaction, the executive vice president directly owned 2,687,660 shares of the company’s stock, valued at $598,810,648. The trade was a 1.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 1,766,118 shares of company stock valued at $399,450,353. Company insiders own 3.94% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. State Street Corp grew its holdings in NVIDIA by 1.6% in the 2nd 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 buying an additional 15,897,836 shares during the last quarter. Bank of America Corp DE lifted its stake in shares of NVIDIA by 2.2% in the second 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 buying an additional 4,165,875 shares during the period. Amundi raised its holdings in NVIDIA by 10.4% in the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock valued at $23,329,141,000 after acquiring an additional 12,575,177 shares in the last quarter. Deutsche Bank AG lifted its position in shares of NVIDIA by 2.3% in the 2nd quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker’s stock worth $18,399,108,000 after acquiring an additional 2,045,101 shares during the period. Finally, Dimensional Fund Advisors LP raised its stake in shares of NVIDIA by 0.6% in the first quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker’s stock valued at $16,479,126,000 after purchasing an additional 555,221 shares in the last quarter. Institutional investors own 65.27% of the company’s stock.

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.