NVIDIA (NASDAQ:NVDA) Trading Down 3.4% – Here’s What Happened

NVIDIA Corporation (NASDAQ:NVDA) dropped 3.4% on Monday . The company traded as low as $208.93 and last traded at $210.96. 130,578,030 shares were traded during trading, a decline of 17% from the average daily volume of 157,415,375 shares. The stock had previously closed at $218.29.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: CEO Jensen Huang said the AI spending “flywheel” is accelerating and argued that safety engineering—not slower infrastructure investment or new regulation—should address AI risks. The comments support the view that hyperscaler and enterprise demand for NVIDIA’s GPUs, networking equipment and software remains strong. NVIDIA CEO Says AI Spending Flywheel Is Really, Really Flying
• Positive Sentiment: Meta CEO Mark Zuckerberg sided more closely with Huang’s market-driven approach to AI safety, reducing fears that major technology companies will coordinate a broad development pause. Salesforce also launched Koa, a CRM reasoning model built on NVIDIA’s Nemotron platform, highlighting expanding software adoption. Meta CEO Mark Zuckerberg sides with Nvidia’s Huang
• Positive Sentiment: Nokia is gaining operator traction for AI-RAN platforms built on NVIDIA technology, while broader industry commentary points to continued growth in AI servers, memory, networking and inference workloads. NVIDIA’s planned buybacks and dividends—approximately $26 billion in the latest quarter—also reinforce confidence in future cash generation. Nokia Gains Global Traction for AI-RAN on NVIDIA Platforms
• Neutral Sentiment: Huang is expected to attend President Trump’s state dinner for Chinese President Xi Jinping. The high-profile meeting could offer visibility into U.S.-China chip relations, but it provides no immediate change to NVIDIA’s restrictions on China-related sales. Nvidia CEO Huang attending Trump’s state dinner for China’s Xi
• Negative Sentiment: Investors remain concerned that calls from Anthropic and other AI leaders to slow frontier-model development could eventually reduce data-center spending. Michael Burry’s bearish stance on AI leaders adds to the headline pressure, although his reported sale of NVIDIA puts limits the direct significance of that trade. Michael Burry predicts a possible 1987-style drop
• Negative Sentiment: Higher Treasury yields and NVIDIA’s premium valuation remain risks, while rising memory and infrastructure costs could pressure margins even as demand stays robust.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on NVDA shares. Phillip Securities increased their price target on NVIDIA from $285.00 to $300.00 and gave the company a “buy” rating in a research note on Monday, August 31st. Bank of America reaffirmed a “buy” rating and issued a $350.00 target price (up from $320.00) on shares of NVIDIA in a report on Thursday, May 21st. Benchmark reiterated a “buy” rating and issued a $335.00 target price on shares of NVIDIA in a research report on Thursday, August 27th. Raymond James Financial set a $515.00 price target on NVIDIA and gave the company a “strong-buy” rating in a research note on Thursday, August 27th. Finally, KeyCorp restated an “overweight” rating and set a $330.00 price target on shares of NVIDIA in a report on Monday, August 24th. Three investment analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Buy” and an average price target of $324.34.

NVIDIA Price Performance

The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The business has a 50 day moving average price of $213.90 and a 200-day moving average price of $203.66. The company has a market capitalization of $5.11 trillion, a price-to-earnings ratio of 26.82, a P/E/G ratio of 1.65 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. During the same quarter in the previous year, the business posted $1.05 EPS. NVIDIA’s revenue for the quarter was up 105.9% compared to the same quarter last year. Research analysts predict that NVIDIA Corporation will post 9.12 EPS for the current fiscal year.

NVIDIA Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be given a $0.25 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is presently 12.64%.

NVIDIA announced that its Board of Directors has approved 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 purchase up to 1.5% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Insider Activity at NVIDIA

In other NVIDIA news, Director Mark A. Stevens sold 885,000 shares of the firm’s 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 transaction, the director directly owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. This trade 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 the SEC website. Also, EVP Timothy S. Teter sold 30,000 shares of NVIDIA stock in a transaction on Monday, August 31st. The stock was sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at $585,587,360.80. This represents a 1.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 2,585,740 shares of company stock worth $571,015,527. 3.94% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in NVDA. Lifetime Wealth Management P.C. bought a new stake in NVIDIA during the fourth quarter worth $26,000. Longview Financial Advisors Inc. bought a new stake in shares of NVIDIA during the 1st quarter worth $27,000. Montgomery Financial Services LLC purchased a new position in shares of NVIDIA in the 2nd quarter worth about $28,000. Langley Wealth Management LLC bought a new position in NVIDIA during the second quarter valued at about $34,000. Finally, Phillip James Consulting Co. purchased a new stake in NVIDIA during the first quarter worth about $40,000. 65.27% of the stock is owned by institutional investors.

About NVIDIA

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company’s offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.