NVIDIA (NASDAQ:NVDA) Trading Down 2.2% – Here’s Why

NVIDIA Corporation (NASDAQ:NVDA) shares dropped 2.2% during mid-day trading on Friday . The stock traded as low as $197.97 and last traded at $202.81. Approximately 143,597,675 shares changed hands during trading, a decline of 14% from the average daily volume of 166,893,609 shares. The stock had previously closed at $207.40.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA expanded its AI footprint in Japan through new partnerships with major companies and institutions, including work on a national AI infrastructure project and an AI factory. The company also unveiled new AI and robotics tools, reinforcing its leadership in physical AI and potentially opening additional long-term revenue streams. Article Title
• Positive Sentiment: KeyCorp and Erste Group Bank raised earnings estimates for NVIDIA, signaling Wall Street still sees strong profit growth ahead and keeping valuation support in place. Higher forecasts can help offset some of the recent selling pressure.
• Positive Sentiment: Multiple articles highlighted NVIDIA’s continued importance in AI infrastructure, robotics, and cloud partnerships, including a new NVIDIA Cloud Partner addition and broader adoption of its Nemotron models in Japan. That suggests demand for NVIDIA’s ecosystem remains healthy.
• Neutral Sentiment: Apple briefly passed NVIDIA to become the world’s most valuable company, reflecting a shift in investor sentiment within mega-cap tech rather than a direct deterioration in NVIDIA’s fundamentals.
• Neutral Sentiment: Recent headlines about AI capex fears, a semiconductor sector pullback, and concerns about in-house silicon from rivals like Google and Amazon are weighing on the stock market’s mood toward chips generally.
• Negative Sentiment: NVIDIA stock is being hit by a broader selloff in semiconductor shares as investors rotate away from chip names, and some market commentary suggests the stock may be vulnerable to “sell-the-news” reactions despite strong business updates.
• Negative Sentiment: Some bearish commentary argues that investors are worried AI spending could eventually normalize, creating valuation risk for NVIDIA after its huge run.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the company. Weiss Ratings reaffirmed a “buy (b)” rating on shares of NVIDIA in a research note on Wednesday, July 8th. Royal Bank Of Canada set a $280.00 price objective on shares of NVIDIA in a report on Thursday, May 21st. Benchmark reaffirmed a “buy” rating and issued a $335.00 target price (up from $250.00) on shares of NVIDIA in a research report on Thursday, May 21st. Seaport Research Partners lifted their target price on shares of NVIDIA from $140.00 to $180.00 and gave the company a “sell” rating in a research note on Thursday, May 21st. Finally, Bank of America reiterated a “buy” rating and set a $350.00 price target (up from $320.00) on shares of NVIDIA in a research report on Thursday, May 21st. Two equities research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $304.26.

NVIDIA Stock Performance

The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. The firm has a market cap of $4.91 trillion, a P/E ratio of 31.06, a P/E/G ratio of 0.47 and a beta of 2.21. The business has a fifty day simple moving average of $209.88 and a 200-day simple moving average of $195.05.

NVIDIA (NASDAQ:NVDA) last announced its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. The firm had revenue of $81.61 billion for the quarter, compared to analysts’ expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company’s quarterly revenue was up 85.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.81 EPS. On average, sell-side analysts predict that NVIDIA Corporation will post 8.8 EPS for the current fiscal year.

NVIDIA Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. The ex-dividend date was Thursday, June 4th. NVIDIA’s dividend payout ratio is currently 15.31%.

NVIDIA declared that its board has initiated a stock buyback plan on Wednesday, May 20th that allows the company to buyback $80.00 billion in shares. This buyback authorization allows the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board believes its shares are undervalued.

Insider Transactions at NVIDIA

In related news, Director Stephen C. Neal sold 15,500 shares of the company’s stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total value of $3,343,815.00. Following the sale, the director owned 116,135 shares in the company, valued at $25,053,803.55. This represents a 11.77% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director John Dabiri sold 625 shares of the firm’s stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the transaction, the director directly owned 14,163 shares of the company’s stock, valued at approximately $3,030,882. This trade represents a 4.23% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,901,125 shares of company stock valued at $410,583,015 in the last ninety days. 3.94% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On NVIDIA

Several institutional investors and hedge funds have recently modified their holdings of NVDA. Lifetime Wealth Management P.C. bought a new stake in shares of NVIDIA during the fourth quarter valued at approximately $26,000. Longview Financial Advisors Inc. bought a new position in NVIDIA in the 1st quarter valued at approximately $27,000. Longfellow Investment Management Co. LLC boosted its stake in NVIDIA by 47.9% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after purchasing an additional 67 shares during the last quarter. Phillip James Consulting Co. purchased a new stake in NVIDIA during the 1st quarter valued at $40,000. Finally, Inspire Investing LLC bought a new stake in shares of NVIDIA in the 4th quarter worth $44,000. 65.27% of the stock is currently owned by institutional investors.

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.