NVIDIA (NASDAQ:NVDA) Shares Down 2.9% – Here’s What Happened

NVIDIA Corporation (NASDAQ:NVDA)’s share price dropped 2.9% during trading on Monday . The stock traded as low as $207.25 and last traded at $208.48. Approximately 131,755,300 shares were traded during trading, a decline of 17% from the average session volume of 158,708,922 shares. The stock had previously closed at $214.72.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Strong AI demand and new products: Analysts expect roughly 99% earnings growth, with data-center demand supporting revenue. NVIDIA also announced that its Groq 3 LPX inference accelerator is in full production, delivering record benchmark speeds and securing Nebius as an early adopter. NVIDIA Groq 3 LPX production announcement
• Positive Sentiment: Additional customer validation: SpaceXAI is adopting NVIDIA’s Vera CPU for large-scale agentic AI applications, reinforcing the company’s position across data-center and emerging satellite-computing markets. SpaceXAI adopts NVIDIA Vera CPU
• Positive Sentiment: Analysts remain bullish: Rosenblatt, KeyBanc and Cantor Fitzgerald reaffirmed positive ratings with price targets ranging from $325 to $350, while several commentators argue investors are underestimating NVIDIA’s AI opportunity.
• Neutral Sentiment: Earnings risk is unusually high: Options markets imply a substantial post-earnings move, and a strong report may already be reflected in the valuation. Investors will closely watch revenue guidance, Rubin shipments, China exposure and the outlook for AI spending.
• Neutral Sentiment: Perplexity investment under discussion: NVIDIA is reportedly considering participating in a funding round valuing AI search startup Perplexity above $30 billion. The deal could deepen NVIDIA’s ecosystem reach but would add to scrutiny of its expanding AI investments. NVIDIA Perplexity investment report
• Negative Sentiment: Higher system prices raise demand concerns: Customers are reportedly being warned of price increases exceeding 15% for systems containing Blackwell and Rubin chips, driven by soaring memory costs. While higher prices could lift revenue, they may pressure customer budgets and relationships. NVIDIA customer price hike report
• Negative Sentiment: Capital-allocation risks are increasing: Critics are concerned about NVIDIA’s large AI-lab investments, financing commitments and reported guarantees, which could make results more sensitive to the financial health of AI customers and partners.
• Negative Sentiment: Export-control concerns: Taiwan indicted nine people, including alleged NVIDIA employees, over suspected illegal exports of AI servers to China. The case highlights continuing regulatory and supply-chain risks. Taiwan AI server export indictment
• Negative Sentiment: Broader market pressure: Technology and semiconductor stocks pulled back, while rising yields and seasonal concerns weighed on the AI trade. NVIDIA’s valuation and extended losing streak have amplified pre-earnings volatility.

Analysts Set New Price Targets

Several research analysts have recently weighed in on NVDA shares. Rothschild & Co Redburn upped their target price on shares of NVIDIA from $280.00 to $300.00 and gave the company a “buy” rating in a research note on Tuesday, May 26th. China Renaissance assumed coverage on NVIDIA in a research note on Friday, June 5th. They set a “buy” rating and a $319.00 target price for the company. 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. Wolfe Research restated an “outperform” rating and set a $275.00 price objective on shares of NVIDIA in a report on Thursday, May 21st. Finally, The Goldman Sachs Group reiterated a “buy” rating on shares of NVIDIA in a research note on Tuesday, August 11th. Three analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, NVIDIA has an average rating of “Buy” and an average target price of $308.01.

NVIDIA Stock Performance

The firm has a market capitalization of $5.05 trillion, a price-to-earnings ratio of 31.93, a P/E/G ratio of 0.42 and a beta of 2.23. The company has a 50-day moving average price of $207.47 and a 200-day moving average price of $199.62. 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 declared that its board 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 repurchase up to 1.5% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Insider Activity at NVIDIA

In other news, Director Mark A. Stevens sold 885,000 shares of the stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the completion of the sale, the director owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. This represents a 14.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director John Dabiri sold 625 shares of the 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 completion of the transaction, the director owned 14,163 shares of the company’s stock, valued at $3,030,882. This trade represents a 4.23% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,901,125 shares of company stock valued at $410,583,015 over the last ninety days. Insiders own 3.94% of the company’s stock.

Hedge Funds Weigh In On NVIDIA

Institutional investors and hedge funds have recently modified their holdings of the stock. Tanager Wealth Management LLP increased its holdings in NVIDIA by 9.5% in the second quarter. Tanager Wealth Management LLP now owns 21,939 shares of the computer hardware maker’s stock worth $4,390,000 after buying an additional 1,912 shares during the last quarter. Washington Trust Advisors Inc. increased its stake in shares of NVIDIA by 5.7% during the 2nd quarter. Washington Trust Advisors Inc. now owns 188,690 shares of the computer hardware maker’s stock worth $37,755,000 after purchasing an additional 10,257 shares during the last quarter. Ameritas Advisory Services LLC raised its holdings in shares of NVIDIA by 63.5% during the 2nd quarter. Ameritas Advisory Services LLC now owns 313,129 shares of the computer hardware maker’s stock valued at $62,654,000 after purchasing an additional 121,664 shares in the last quarter. Trevian Wealth Management LLC lifted its stake in shares of NVIDIA by 7.8% in the 2nd quarter. Trevian Wealth Management LLC now owns 5,551 shares of the computer hardware maker’s stock valued at $1,111,000 after purchasing an additional 404 shares during the last quarter. Finally, Varenne Capital Partners acquired a new stake in shares of NVIDIA in the 2nd quarter valued at $30,984,000. 65.27% of the stock is currently owned by hedge funds and other 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.