NVIDIA (NASDAQ:NVDA) Trading Down 2.9% – What’s Next?

Shares of NVIDIA Corporation (NASDAQ:NVDA) traded down 2.9% during mid-day trading on Monday . The stock traded as low as $216.77 and last traded at $217.55. 113,623,289 shares changed hands during mid-day trading, a decline of 30% from the average daily volume of 162,592,641 shares. The stock had previously closed at $223.96.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: AI infrastructure financing: NVIDIA is partnering with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to help fund data centers, power and GPU deployments. Shifting much of the financing and credit exposure to Wall Street could enable customers to purchase more NVIDIA hardware without requiring the company to fund the entire buildout. Nvidia teams up with Wall Street asset managers on $500 billion AI infrastructure push
• Positive Sentiment: Strong customer demand: NVIDIA-backed Nebius reported a 454% year-over-year increase in second-quarter revenue to $582 million and said demand for AI capacity could exhaust its 2027 availability. The result supports the view that cloud providers continue to need NVIDIA-powered capacity. NVIDIA-Backed Nebius Says AI Capacity Demand Is So Hot It Could Sell Out 2027 Today
• Positive Sentiment: Additional commercial momentum: IBM and Together AI agreed to a $240 million, multi-year deal for an NVIDIA-powered inference cluster on IBM Cloud. NVIDIA is also developing Nemotron open-weight models, potentially expanding its software influence and helping U.S. firms compete with Chinese AI developers. IBM, Together AI ink $240 million deal for Nvidia-powered AI inference cluster
• Neutral Sentiment: Upcoming earnings catalyst: NVIDIA reports fiscal second-quarter results on August 26. Analysts expect revenue near or above the company’s $91 billion guidance, but the stock’s valuation and elevated expectations leave limited room for disappointment. Wells Fargo reiterated an Overweight rating with a $315 target. NVIDIA to Report Q2 Earnings Later in August
• Negative Sentiment: Financing and demand risks: Critics remain concerned about “circular financing,” NVIDIA’s potential guarantees, rapid GPU depreciation and the possibility that cheaper Chinese computing capacity could reduce collateral values. Microsoft’s exploration of custom silicon and accelerating AMD competition also highlight longer-term risks to NVIDIA’s dominant position. Nvidia is trying to quiet circular financing accusations

Wall Street Analysts Forecast Growth

NVDA has been the subject of several analyst reports. Susquehanna restated a “positive” rating and issued a $275.00 price objective (up from $250.00) on shares of NVIDIA in a report on Tuesday, May 12th. William Blair reissued an “outperform” rating on shares of NVIDIA in a research report on Tuesday, June 2nd. Citigroup started coverage on NVIDIA in a research note on Wednesday, April 15th. They issued a “buy” rating for the company. BTIG Research started coverage on NVIDIA in a research report on Wednesday, April 15th. They set a “buy” rating on the stock. Finally, Wells Fargo & Company reiterated an “overweight” rating and set a $315.00 price objective on shares of NVIDIA in a research note on Tuesday. Three analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, NVIDIA presently has an average rating of “Buy” and a consensus price target of $304.26.

NVIDIA Stock Up 2.8%

The firm has a market cap of $5.41 trillion, a P/E ratio of 34.12, a P/E/G ratio of 0.42 and a beta of 2.23. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The firm’s fifty day moving average is $205.42 and its 200 day moving average is $197.78.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings data 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. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The firm had revenue of $81.61 billion for the quarter, compared to analyst estimates of $78.42 billion. During the same period in the prior year, the firm posted $0.81 EPS. The company’s revenue for the quarter was up 85.2% on a year-over-year basis. As a group, equities research analysts anticipate that NVIDIA Corporation will post 8.79 earnings per share for the current fiscal 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 paid a dividend of $0.25 per share. The ex-dividend date was Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. NVIDIA’s dividend payout ratio is currently 15.31%.

NVIDIA announced that its Board of Directors has initiated a share 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 purchase up to 1.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s leadership believes its stock is undervalued.

Insider Activity

In other news, Director John Dabiri sold 625 shares of the company’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 transaction of $133,750.00. Following the completion of the sale, the director owned 14,163 shares of the company’s stock, valued at approximately $3,030,882. This represents a 4.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of the stock in a transaction that occurred 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 owned 116,135 shares in the company, valued at $25,053,803.55. This represents a 11.77% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 1,901,125 shares of company stock worth $410,583,015. 3.94% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On NVIDIA

Several hedge funds and other institutional investors have recently modified their holdings of the business. Norges Bank acquired a new stake in shares of NVIDIA during the 4th quarter valued at $62,244,133,000. J. Stern & Co. LLP increased its holdings in NVIDIA by 13,709.1% in the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock worth $23,454,297,000 after purchasing an additional 124,849,603 shares in the last quarter. Cardano Risk Management B.V. increased its holdings in NVIDIA by 896.4% in the 4th quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker’s stock worth $14,570,119,000 after purchasing an additional 70,283,539 shares in the last quarter. Capital Research Global Investors raised its position in NVIDIA by 16.1% in the third quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker’s stock valued at $30,855,564,000 after purchasing an additional 22,896,705 shares during the last quarter. Finally, Laurel Wealth Advisors LLC boosted its stake in shares of NVIDIA by 15,496.1% during the second quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker’s stock valued at $3,454,534,000 after purchasing an additional 21,725,326 shares in the last quarter. 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.