NVIDIA (NASDAQ:NVDA) Stock Price Down 3.7% – Here’s Why

NVIDIA Corporation (NASDAQ:NVDA)’s share price dropped 3.7% during trading on Wednesday . The company traded as low as $199.92 and last traded at $200.42. Approximately 157,116,683 shares changed hands during trading, a decline of 9% from the average daily volume of 172,283,188 shares. The stock had previously closed at $208.19.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Analysts remain upbeat on NVDA, lifting revenue estimates and price targets while calling the stock undervalued given its AI leadership, suggesting room for upside if demand stays strong.
• Positive Sentiment: NVIDIA is expanding its AI footprint with new partnerships, including a six-year compute collaboration with SharonAI and continued work in healthcare AI with Abridge, reinforcing the company’s role in multiple fast-growing AI markets.
• Positive Sentiment: Reports that NVIDIA has begun pitching its Vera CPU to Chinese customers, with availability potentially as soon as August, could reopen a meaningful revenue opportunity in China if export constraints allow broader adoption. Article Title
• Positive Sentiment: Fresh product and platform news, including the RTX Spark Superchip and broader agentic AI initiatives, supports the view that NVIDIA is extending its dominance beyond GPUs into CPUs and local AI computing.
• Neutral Sentiment: The stock is also being influenced by broader tech-sector volatility and the public debut of SpaceX, which is pulling attention across growth names without changing NVIDIA’s fundamentals directly.
• Neutral Sentiment: NVIDIA hired veteran lobbyist Bruce Andrews to lead government affairs in Washington, a move that may help on policy issues but is not an immediate earnings catalyst.
• Negative Sentiment: Despite the positive AI news flow, NVDA has been under pressure from a broader selloff in high-growth tech stocks, and some commentary suggests investors are becoming more selective about AI valuations.
• Negative Sentiment: Ongoing concerns about U.S.-China export restrictions and recent weakness in NVIDIA’s shares are keeping traders cautious even as the long-term AI growth story remains intact.

Analysts Set New Price Targets

NVDA has been the topic of a number of recent analyst reports. Truist Financial lifted their price target on NVIDIA from $287.00 to $307.00 and gave the stock a “buy” rating in a report on Thursday, May 21st. Barclays reiterated an “overweight” rating on shares of NVIDIA in a report on Thursday, May 21st. Stifel Nicolaus set a $282.00 target price on NVIDIA and gave the stock a “buy” rating in a research report on Thursday, May 21st. Tigress Financial restated a “strong-buy” rating and issued a $425.00 target price (up from $360.00) on shares of NVIDIA in a research note on Wednesday, May 27th. Finally, Citic Securities boosted their target price on NVIDIA from $242.00 to $315.00 and gave the company a “buy” rating in a research note on Friday, May 22nd. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Buy” and a consensus price target of $305.67.

NVIDIA Stock Performance

The stock has a market capitalization of $4.96 trillion, a P/E ratio of 31.42, a price-to-earnings-growth ratio of 0.45 and a beta of 2.22. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The company has a 50 day simple moving average of $206.25 and a 200-day simple moving average of $191.25.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company had revenue of $81.62 billion for the quarter, compared to analyst estimates of $78.42 billion. During the same period in the previous year, the company posted $0.81 EPS. The firm’s revenue for the quarter was up 85.2% compared to the same quarter last year. On average, equities analysts forecast that NVIDIA Corporation will post 8.61 EPS for the current year.

NVIDIA Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Thursday, June 4th will be paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s dividend payout ratio is presently 15.31%.

NVIDIA announced that its board has initiated a share repurchase plan on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is undervalued.

Insider Activity at NVIDIA

In related news, Director Stephen C. Neal sold 15,500 shares of the business’s stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the sale, the director directly owned 116,135 shares in the company, valued at approximately $25,053,803.55. The trade was a 11.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Colette Kress sold 20,000 shares of the business’s stock in a transaction on Friday, March 20th. The shares were sold at an average price of $174.89, for a total value of $3,497,800.00. Following the sale, the chief financial officer owned 83,060 shares in the company, valued at approximately $14,526,363.40. The trade was a 19.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,619,457 shares of company stock worth $332,073,643 in the last 90 days. 3.94% of the stock is owned by company insiders.

Hedge Funds Weigh In On NVIDIA

Several hedge funds and other institutional investors have recently added to or reduced their stakes in NVDA. Shariaportfolio Inc. lifted its stake in NVIDIA by 14.4% during the first quarter. Shariaportfolio Inc. now owns 52,993 shares of the computer hardware maker’s stock worth $9,242,000 after purchasing an additional 6,670 shares during the last quarter. S&A Financial Services Inc. bought a new stake in NVIDIA during the first quarter worth about $375,000. E Wealth Partners LLC lifted its stake in NVIDIA by 14.6% during the first quarter. E Wealth Partners LLC now owns 15,105 shares of the computer hardware maker’s stock worth $2,634,000 after purchasing an additional 1,924 shares during the last quarter. LFG Wealth Partners LLC lifted its stake in NVIDIA by 8.4% during the first quarter. LFG Wealth Partners LLC now owns 61,865 shares of the computer hardware maker’s stock worth $10,789,000 after purchasing an additional 4,778 shares during the last quarter. Finally, Curry Webb Wealth Management LLC bought a new stake in NVIDIA during the first quarter worth about $358,000. 65.27% of the stock is currently owned by hedge funds and other institutional investors.

NVIDIA Company Profile

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.