NVIDIA (NASDAQ:NVDA) Stock Price Down 1.3% – Here’s What Happened

Shares of NVIDIA Corporation (NASDAQ:NVDA) traded down 1.3% during mid-day trading on Wednesday . The company traded as low as $193.45 and last traded at $197.58. 141,671,574 shares changed hands during mid-day trading, a decline of 17% from the average session volume of 170,048,422 shares. The stock had previously closed at $200.09.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA expanded its AI ecosystem by offering startups GPU access through revenue-sharing deals, which could help grow its customer base and create future recurring demand for its chips. Nvidia offers start-up customers chance to swap compute power for revenue share
• Positive Sentiment: Analysts and market commentators remain constructive on NVIDIA, with several pieces citing continued upside potential after the recent pullback and highlighting the company’s strong AI data-center growth. Nvidia: The Drawdown Is An Opportunity To Pounce
• Neutral Sentiment: NVIDIA’s partnership momentum in AI remains intact, including collaborations tied to sovereign AI, robotics, and edge AI that reinforce its role as core infrastructure for the next phase of AI spending. Valar nuclear startup partners with Nvidia on data center aiming to conserve water
• Negative Sentiment: The stock is under pressure from a broader semis selloff and profit-taking after a huge run-up, while bearish commentary from investors like Michael Burry is adding caution around AI-chip valuations. Big Short investor Michael Burry reveals fresh bets against Tesla, Nvidia, and Caterpillar
• Negative Sentiment: Another headwind is the market narrative that NVIDIA may need to broaden beyond pure AI hardware leadership to keep its extreme valuation supported, especially as customers and rivals develop competing chips. Why Nvidia Must Be More Like Apple to Remain World’s Most Valuable Company

Analysts Set New Price Targets

A number of research firms have recently weighed in on NVDA. CICC Research increased their target price on shares of NVIDIA from $240.60 to $268.30 and gave the stock an “outperform” rating in a report on Friday, May 22nd. Truist Financial lifted their price target on shares of NVIDIA from $287.00 to $307.00 and gave the company a “buy” rating in a report on Thursday, May 21st. DZ Bank restated a “buy” rating on shares of NVIDIA in a report on Thursday, May 21st. Craig Hallum lifted their target price on shares of NVIDIA from $245.00 to $275.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Finally, Sanford C. Bernstein reissued a “buy” rating on shares of NVIDIA in a research note on Monday. Three 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. According to MarketBeat, the stock currently has an average rating of “Buy” and an average price target of $303.84.

NVIDIA Price Performance

The firm’s 50 day moving average is $210.37 and its 200 day moving average is $193.50. The firm has a market cap of $4.71 trillion, a P/E ratio of 29.84, a price-to-earnings-growth ratio of 0.44 and a beta of 2.21. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, topping the consensus estimate of $1.76 by $0.11. The company had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The firm’s quarterly revenue was up 85.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.81 EPS. As a group, analysts anticipate that NVIDIA Corporation will post 8.69 earnings per share for the current year.

NVIDIA Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Thursday, June 4th were given a $0.25 dividend. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s payout ratio is presently 15.31%.

NVIDIA declared that its board has initiated a stock repurchase program on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to buy up to 1.5% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Insider Activity at NVIDIA

In other NVIDIA news, Director John Dabiri sold 625 shares of NVIDIA stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the completion of the transaction, the director directly owned 14,163 shares of the company’s stock, valued at approximately $3,030,882. The trade was a 4.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of the stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the sale, the director owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 1,901,125 shares of company stock valued at $410,583,015. 3.94% of the stock is owned by insiders.

Hedge Funds Weigh In On NVIDIA

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Silverleafe Capital Partners LLC boosted its stake in NVIDIA by 14.1% during the 2nd quarter. Silverleafe Capital Partners LLC now owns 10,194 shares of the computer hardware maker’s stock valued at $2,040,000 after purchasing an additional 1,258 shares during the last quarter. Box Hill Private Wealth LLC raised its stake in shares of NVIDIA by 12.5% in the second quarter. Box Hill Private Wealth LLC now owns 15,226 shares of the computer hardware maker’s stock worth $3,047,000 after purchasing an additional 1,687 shares during the last quarter. Diesslin Group Inc. lifted its holdings in shares of NVIDIA by 13.8% during the second quarter. Diesslin Group Inc. now owns 3,317 shares of the computer hardware maker’s stock valued at $664,000 after purchasing an additional 401 shares in the last quarter. Cedar Mountain Advisors LLC boosted its position in shares of NVIDIA by 2.6% during the second quarter. Cedar Mountain Advisors LLC now owns 4,477 shares of the computer hardware maker’s stock valued at $896,000 after buying an additional 113 shares during the last quarter. Finally, KERR FINANCIAL PLANNING Corp increased its holdings in NVIDIA by 1.3% in the 2nd quarter. KERR FINANCIAL PLANNING Corp now owns 22,570 shares of the computer hardware maker’s stock worth $4,516,000 after buying an additional 298 shares in the last quarter. 65.27% of the stock is 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.