NVIDIA (NASDAQ:NVDA) Trading Down 5% – Time to Sell?

NVIDIA Corporation (NASDAQ:NVDA)’s share price dropped 5% during trading on Monday . The company traded as low as $195.44 and last traded at $196.51. Approximately 153,173,736 shares changed hands during trading, a decline of 7% from the average daily volume of 164,664,094 shares. The stock had previously closed at $206.84.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Demand from the AI hardware ecosystem remains strong. NVIDIA partner SK Hynix reported a more than sixfold increase in quarterly operating profit, supported by record demand for advanced memory used with NVIDIA systems, although sales fell short of forecasts. SK Hynix posts sixfold rise in Q2 profit on AI chip demand
• Positive Sentiment: Chip-design software company ChipAgents raised $60 million to expand AI-agent tools that automate semiconductor verification, highlighting potential long-term demand for NVIDIA’s accelerated-computing platform. Nvidia partner ChipAgents raises $60 million
• Positive Sentiment: Erste Group modestly raised its NVIDIA EPS forecasts to $8.67 for fiscal 2027 and $12.15 for fiscal 2028, reinforcing expectations for continued earnings growth.
• Positive Sentiment: NVIDIA’s partnerships with Safe Superintelligence, robotics companies and AI infrastructure providers could broaden future compute demand beyond current hyperscaler customers.
• Neutral Sentiment: The company is reportedly discussing a potential $250 billion credit backstop for OpenAI’s Ohio data-center project, alongside broader financing and hardware commitments that could exceed $500 billion. The arrangement could secure demand for NVIDIA’s systems and protect its ecosystem, but it would also expand NVIDIA’s exposure to OpenAI’s creditworthiness and make the company a major infrastructure financier. Nvidia and OpenAI in talks for up to $250 billion dollar backstop
• Neutral Sentiment: Apple briefly reclaimed the title of the world’s most valuable public company, increasing scrutiny of NVIDIA’s valuation and the concentration of investor enthusiasm around AI.
• Negative Sentiment: Investors are concerned that vendor financing and circular AI deals may be creating artificial demand. Rising credit-insurance costs, OpenAI’s losses and financial stress at GPU-cloud provider CoreWeave have intensified fears of stranded data-center assets. NVIDIA’s OpenAI Backstop Puts AI Financing Risk in Focus
• Negative Sentiment: Broader semiconductor weakness, stronger Chinese competition and reports of a NVIDIA employee detained in a Super Micro export probe are adding geopolitical and regulatory risk.
• Negative Sentiment: Short-seller Michael Burry’s reported bearish position and persistent insider selling are reinforcing concerns that expectations and valuation remain vulnerable if AI spending slows.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on NVDA. Needham & Company LLC reiterated a “buy” rating and issued a $270.00 price target on shares of NVIDIA in a research note on Tuesday, June 2nd. William Blair reissued an “outperform” rating on shares of NVIDIA in a research report on Tuesday, June 2nd. Itau BBA Securities reduced their price objective on shares of NVIDIA from $256.00 to $218.00 in a report on Wednesday, June 24th. Daiwa Securities Group lifted their price objective on shares of NVIDIA from $215.00 to $255.00 and gave the stock an “outperform” rating in a research report on Friday, May 22nd. Finally, Tigress Financial reiterated a “strong-buy” rating and set a $425.00 target price (up from $360.00) on shares of NVIDIA in a research note on Wednesday, May 27th. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, NVIDIA presently has a consensus rating of “Buy” and an average target price of $304.26.

NVIDIA Trading Down 1.8%

The company has a market cap of $4.68 trillion, a price-to-earnings ratio of 29.79, a PEG ratio of 0.38 and a beta of 2.21. 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 business’s fifty day simple moving average is $206.86 and its two-hundred day simple moving average is $195.98.

NVIDIA (NASDAQ:NVDA) last issued its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.76 by $0.11. The business had revenue of $81.61 billion during 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 revenue for the quarter was up 85.2% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.81 EPS. On average, equities analysts predict that NVIDIA Corporation will post 8.79 EPS for the current year.

NVIDIA Increases Dividend

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

NVIDIA declared that its board has initiated a stock repurchase plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to reacquire up to 1.5% of its stock 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, Director John Dabiri sold 625 shares of NVIDIA stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total transaction of $133,750.00. Following the sale, the director owned 14,163 shares in the company, valued at approximately $3,030,882. The trade was a 4.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed 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 business’s stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the sale, the director directly owned 5,207,271 shares of the company’s stock, valued at $1,094,412,146.07. The trade was a 14.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 1,901,125 shares of company stock valued at $410,583,015. 3.94% of the stock is currently owned by insiders.

Institutional Investors Weigh In On NVIDIA

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Lifetime Wealth Management P.C. purchased a new position in NVIDIA during the 4th quarter worth $26,000. Longview Financial Advisors Inc. purchased a new stake in shares of NVIDIA in the first quarter valued at about $27,000. Longfellow Investment Management Co. LLC boosted its stake in shares of NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after buying an additional 67 shares during the period. Phillip James Consulting Co. acquired a new stake in shares of NVIDIA during the first quarter worth about $40,000. Finally, Inspire Investing LLC acquired a new stake in shares of NVIDIA during the fourth quarter worth about $44,000. Hedge funds and other institutional investors own 65.27% of the company’s stock.

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.