NVIDIA (NASDAQ:NVDA) Stock Falls 1.3% on Analyst Downgrade

NVIDIA Corporation (NASDAQ:NVDA)’s stock price dropped 1.3% during mid-day trading on Monday after Melius Research lowered their price target on the stock from $420.00 to $315.00. Melius Research currently has a buy rating on the stock. NVIDIA traded as low as $201.66 and last traded at $202.06. Approximately 117,124,909 shares traded hands during mid-day trading, a decline of 21% from the average daily volume of 148,662,906 shares. The stock had previously closed at $204.64.

Several other brokerages also recently weighed in on NVDA. KeyCorp reaffirmed an “overweight” rating and set a $330.00 price target on shares of NVIDIA in a report on Monday, August 24th. Phillip Securities boosted their price objective on shares of NVIDIA from $285.00 to $300.00 and gave the company a “buy” rating in a research note on Monday, August 31st. Yorkville Ives started coverage on shares of NVIDIA in a research report on Tuesday, October 6th. They set an “outperform” rating and a $300.00 price objective for the company. TD Cowen restated a “buy” rating on shares of NVIDIA in a research note on Tuesday, August 18th. Finally, HSBC raised their target price on shares of NVIDIA from $360.00 to $365.00 in a research note on Thursday, August 27th. Five research analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Buy” and an average price target of $319.45.

Insider Activity at NVIDIA

In related news, CFO Colette Kress sold 34,918 shares of the company’s stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the transaction, the chief financial officer owned 765,103 shares of the company’s stock, valued at $167,595,812.15. This represents a 4.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy Teter sold 30,460 shares of the company’s stock in a transaction on Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at approximately $598,810,648. This trade represents a 1.12% 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. Insiders have sold a total of 1,766,118 shares of company stock worth $399,450,353 over the last three months. 3.94% of the stock is currently owned by corporate insiders.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Analysts expect another strong quarterly report. NVIDIA has a history of exceeding estimates, and its roughly $108 billion revenue outlook for the upcoming quarter could be surpassed as hyperscaler AI spending remains robust. The next earnings report, expected around November 17, is viewed as a potential catalyst. Will Nvidia Beat Estimates Again in Its Next Earnings Report?
• Positive Sentiment: Big technology companies continue to increase capital spending on data centers, supporting demand for NVIDIA GPUs, networking products, and related infrastructure. Articles also point to possible long-term demand from SpaceX’s planned AI data centers, although those projections remain speculative. Nvidia: SpaceX Offers an Ignored Bonus
• Positive Sentiment: NVIDIA and AMD joined a $700 million financing round for AI startup Hark, valuing the company at $6 billion. The investment could provide strategic exposure to consumer AI, though it is not an immediate earnings driver. Nvidia and AMD Are Backing a $6 Billion AI Startup
• Neutral Sentiment: Melius Research reduced its NVIDIA price target from $420 to $315 but retained a “buy” rating. The lower target reflects a more cautious valuation view, while still implying substantial upside from current levels. Melius Research NVIDIA Rating
• Negative Sentiment: Some investors remain concerned that AI infrastructure spending could slow, and one market veteran has reportedly reduced most of his NVIDIA position. NVIDIA’s chart also remains technically weak after its recent decline, potentially encouraging additional selling. Wall Street Veteran Warns of an AI Spending Slowdown
• Negative Sentiment: Concerns over NVIDIA’s valuation and rising supply commitments, inventory, and receivables add balance-sheet risk even if demand remains strong. Competition from AMD and the rapid rise of AI startups such as Anthropic also raises questions about how durable NVIDIA’s exceptional growth and margins will be. Nvidia Q3 FY2027 Preview

Institutional Investors Weigh In On NVIDIA

Institutional investors have recently modified their holdings of the company. Boyd Wealth Management LLC boosted its holdings in NVIDIA by 273.4% in the second quarter. Boyd Wealth Management LLC now owns 9,145 shares of the computer hardware maker’s stock valued at $1,830,000 after purchasing an additional 6,696 shares during the period. Ally Financial Inc. increased its holdings in NVIDIA by 10.3% during the 2nd quarter. Ally Financial Inc. now owns 172,000 shares of the computer hardware maker’s stock worth $34,415,000 after purchasing an additional 16,000 shares during the period. Altshuler Shaham Ltd increased its holdings in NVIDIA by 6,451.9% during the 1st quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker’s stock worth $111,134,000 after purchasing an additional 627,510 shares during the period. Vanguard Capital Wealth Advisors increased its holdings in NVIDIA by 5.6% during the 2nd quarter. Vanguard Capital Wealth Advisors now owns 52,163 shares of the computer hardware maker’s stock worth $10,437,000 after purchasing an additional 2,758 shares during the period. Finally, Baker Tilly Wealth Management LLC raised its position in NVIDIA by 7.4% in the 2nd quarter. Baker Tilly Wealth Management LLC now owns 71,898 shares of the computer hardware maker’s stock valued at $14,386,000 after purchasing an additional 4,958 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.

NVIDIA Stock Down 1.3%

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 company has a market cap of $4.87 trillion, a price-to-earnings ratio of 25.54, a price-to-earnings-growth ratio of 1.57 and a beta of 2.21. The business has a 50-day simple moving average of $221.74 and a 200-day simple moving average of $204.24.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The business had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. During the same period in the previous year, the company posted $1.05 earnings per share. The business’s revenue for the quarter was up 105.9% on a year-over-year basis. On average, equities analysts anticipate that NVIDIA Corporation will post 9.30 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were paid a $0.25 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA’s payout ratio is currently 12.64%.

NVIDIA declared that its Board of Directors has initiated a share repurchase program on Monday, September 28th that permits the company to repurchase $150 billion in outstanding shares. This repurchase authorization permits the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Stock repurchase programs are typically a sign that the company’s leadership believes its shares are undervalued.

About NVIDIA

NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.

The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.