NVIDIA (NASDAQ:NVDA) Trading Down 3.6% – Should You Sell?

NVIDIA Corporation (NASDAQ:NVDA)’s share price was down 3.6% during trading on Wednesday . The stock traded as low as $190.01 and last traded at $190.01. Approximately 145,178,867 shares were traded during mid-day trading, a decline of 12% from the average session volume of 164,486,844 shares. The stock had previously closed at $197.01.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Strong results from Microsoft and other hyperscalers are reinforcing expectations that cloud companies will continue spending heavily on AI data centers, supporting demand for NVIDIA’s GPUs and networking systems. Why Nvidia stock is rebounding after Big Tech earnings
• Positive Sentiment: Recent commentary remains bullish on NVIDIA’s competitive position. Analysts argue that its full-stack architecture and ecosystem remain difficult for AMD and Chinese competitors to challenge, while UBS characterized the semiconductor selloff and “circular financing” fears as overdone. Chip selloff overblown, UBS says
• Positive Sentiment: NVIDIA’s latest AI expansion efforts and partnerships could broaden its growth opportunity beyond chip sales, including investments and infrastructure arrangements tied to emerging AI data centers and agentic AI workloads. The company’s prior quarter produced $81.6 billion in revenue, up roughly 85% year over year, and analysts’ median price target is about $308.50. NVIDIA’s latest frontier AI bet
• Neutral Sentiment: NVIDIA will report fiscal second-quarter 2027 results on August 26. The event gives investors a near-term catalyst, with attention likely focused on data-center demand, customer capital expenditures, margins and the sustainability of AI spending. NVIDIA sets conference call for second-quarter results
• Neutral Sentiment: Erste Group Bank raised its fiscal 2027 EPS estimate, adding to the generally constructive analyst backdrop. However, the stock remains highly sensitive to earnings expectations and technical selling after its recent pullback.
• Negative Sentiment: Credit markets are increasingly hedging the roughly $250 billion AI infrastructure financing risk. Rising credit-default-swap costs for leveraged AI cloud companies have revived concerns that some NVIDIA-related deals rely on circular funding and may not be sustainable if customers slow capital spending. AI risk spooks the debt market
• Negative Sentiment: Investor skepticism is also visible in prominent short positions, including Michael Burry’s reported additions to his NVIDIA short, while NVIDIA insiders have reported sales and no open-market purchases during the past six months. These transactions may add to caution but do not by themselves indicate a change in the company’s fundamentals. Michael Burry adds to NVIDIA short

Analyst Ratings Changes

Several research firms have recently weighed in on NVDA. UBS Group raised their price objective on shares of NVIDIA from $275.00 to $280.00 and gave the company a “buy” rating in a research report on Thursday, May 21st. Argus increased their target price on shares of NVIDIA from $220.00 to $270.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Truist Financial increased their target price on shares of NVIDIA from $287.00 to $307.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. TD Cowen restated a “buy” rating and issued a $275.00 price target (up from $235.00) on shares of NVIDIA in a research report on Friday, May 15th. Finally, President Capital lifted their price target on shares of NVIDIA from $280.00 to $295.00 and gave the stock a “buy” rating in a research report on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Buy” and an average target price of $304.26.

NVIDIA Stock Up 1.3%

The business’s 50 day simple moving average is $205.71 and its 200 day simple moving average is $196.09. The company has a market capitalization of $4.78 trillion, a PE ratio of 30.23, a price-to-earnings-growth ratio of 0.37 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.

NVIDIA (NASDAQ:NVDA) last released its 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. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. During the same period last year, the firm posted $0.81 earnings per share. The firm’s quarterly revenue was up 85.2% compared to the same quarter last year. As a group, analysts forecast that NVIDIA Corporation will post 8.79 EPS for the current year.

NVIDIA Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 0.5%. The ex-dividend date was 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 declared that its board has authorized a stock repurchase program on Wednesday, May 20th that permits the company to buyback $80.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board believes its stock is undervalued.

Insider Buying and Selling at NVIDIA

In other news, Director Stephen C. Neal sold 15,500 shares of the firm’s stock in a transaction 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 completion of the sale, the director owned 116,135 shares of the company’s stock, valued at $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director John Dabiri sold 625 shares of NVIDIA stock in a transaction 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 owned 14,163 shares in the company, valued at $3,030,882. This represents a 4.23% decrease in their position. The SEC filing for this sale provides additional information. 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 three months. 3.94% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On NVIDIA

Several hedge funds have recently bought and sold shares of NVDA. Diversified Enterprises LLC boosted its holdings in NVIDIA by 44.2% during the fourth quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker’s stock valued at $23,798,000 after purchasing an additional 39,129 shares in the last quarter. ASR Vermogensbeheer N.V. increased its holdings in shares of NVIDIA by 1.8% in the fourth quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker’s stock valued at $591,086,000 after purchasing an additional 54,877 shares in the last quarter. Storen Legacy Partners LLC acquired a new position in shares of NVIDIA during the fourth quarter valued at $1,350,000. Weaver Capital Management LLC boosted its stake in shares of NVIDIA by 5.5% in the 4th quarter. Weaver Capital Management LLC now owns 85,216 shares of the computer hardware maker’s stock valued at $15,893,000 after purchasing an additional 4,439 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its position in shares of NVIDIA by 3.6% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 26,652,420 shares of the computer hardware maker’s stock valued at $4,970,704,000 after acquiring an additional 936,506 shares during the last quarter. 65.27% of the stock is 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.