NVIDIA (NASDAQ:NVDA) Share Price Breaks Below 200-Day Moving Average on Analyst Downgrade

NVIDIA Corporation (NASDAQ:NVDA) shares crossed below its 200-day moving average during trading on Monday after Melius Research lowered their price target on the stock from $420.00 to $315.00. The stock has a 200-day moving average of $204.33 and traded as low as $201.66. Melius Research currently has a buy rating on the stock. NVIDIA shares last traded at $202.06, with a volume of 118,479,027 shares trading hands.

Several other research analysts also recently issued reports on NVDA. Daiwa Securities Group lowered their price objective on shares of NVIDIA from $255.00 to $245.00 and set an “outperform” rating on the stock in a research report on Thursday, September 17th. Truist Financial upped their target price on shares of NVIDIA from $307.00 to $346.00 and gave the company a “buy” rating in a report on Thursday, August 27th. Yorkville Ives assumed coverage on shares of NVIDIA in a research note on Tuesday, October 6th. They set an “outperform” rating and a $300.00 target price for the company. Zacks Research raised NVIDIA from a “hold” rating to a “strong-buy” rating in a report on Monday, September 21st. Finally, Rosenblatt Securities reissued a “buy” rating and set a $390.00 price target on shares of NVIDIA in a report on Tuesday, September 29th. Five equities research analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Buy” and an average price target of $319.45.

Insider Buying and Selling at NVIDIA

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

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Strong demand expectations ahead of Nov. 17 earnings: NVIDIA has guided for approximately $108 billion in quarterly revenue, while analysts expect a modest beat. Recent coverage points to continued hyperscaler capital spending, potentially exceeding $1 trillion next year, supporting demand for NVIDIA’s data-center accelerators. Prediction: Nvidia Stock Is Going to Soar After Nov. 17
• Positive Sentiment: Analysts still see upside: Melius Research maintained a Buy rating despite reducing its price target to $315 from $420. Other previews forecast another earnings beat, with revenue near $113 billion and supply—not demand—as the primary constraint. Melius Research NVIDIA rating
• Positive Sentiment: Additional AI growth opportunities: NVIDIA is reportedly positioned to benefit from SpaceX’s planned AI data-center buildout, while its investment in AI startup Hark could expand future ecosystem demand. Edge-computing markets that include NVIDIA are also forecast to grow rapidly through 2030. Nvidia: SpaceX Offers An Ignored Bonus
• Neutral Sentiment: Earnings volatility remains high: NVIDIA exceeded management’s revenue forecast range in each of its past 10 reports, but shares declined the following day in six instances. This suggests a strong report may already be partly anticipated by investors. Nvidia Reports Nov. 17
• Negative Sentiment: Valuation and technical pressure: Commentators described NVIDIA’s chart as vulnerable and argued that major AI-chip stocks have not sold off enough to become compelling bargains. A market strategist also called NVIDIA’s valuation “unbelievable.” Nvidia Rebounds but Its Stock Chart Is Looking Really Ugly
• Negative Sentiment: Spending and execution risks: A prominent investor sold most of his NVIDIA position while warning that AI infrastructure spending could slow. Separate analysis highlighted $279 billion in supply commitments, rising receivables and inventory, increasing balance-sheet risk. Wall Street Veteran Dumps Most of His NVIDIA Stake
• Negative Sentiment: Geopolitical and competitive concerns: NVIDIA’s humanoid-robot reference platforms rely on hands from Chinese-linked startups, highlighting potential supply-chain and regulatory exposure. Investors are also watching AMD’s Helios AI-system ramp as a measure of whether competition is gaining ground. Nvidia’s humanoid push relies on China-made robot hands

Institutional Investors Weigh In On NVIDIA

Hedge funds have recently added to or reduced their stakes in the company. Jupiter Topco LLC acquired a new stake in NVIDIA in the 2nd quarter valued at about $16,156,076,000. Van ECK Associates Corp lifted its position in NVIDIA by 34.7% during the second quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker’s stock worth $15,176,771,000 after buying an additional 19,522,304 shares during the period. Mirae Asset Global Investments Co. Ltd. purchased a new position in shares of NVIDIA during the 3rd quarter worth about $3,921,459,000. State Street Corp boosted its holdings in shares of NVIDIA by 1.6% in the 2nd quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker’s stock valued at $202,047,568,000 after purchasing an additional 15,897,836 shares during the last quarter. Finally, Amundi lifted its stake in shares of NVIDIA by 10.4% in the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock valued at $23,329,141,000 after purchasing an additional 12,575,177 shares in the last quarter. Institutional investors and hedge funds own 65.27% of the company’s stock.

NVIDIA Trading Down 1.3%

The business’s 50-day simple moving average is $221.49 and its two-hundred day simple moving average is $204.33. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The stock has a market capitalization of $4.87 trillion, a price-to-earnings ratio of 25.54, a PEG ratio of 1.65 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA) last issued 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. The firm had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. NVIDIA’s quarterly revenue was up 105.9% compared to the same quarter last year. During the same period last year, the firm posted $1.05 EPS. On average, research analysts anticipate that NVIDIA Corporation will post 9.30 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

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

NVIDIA announced that its Board of Directors has authorized a share repurchase program on Monday, September 28th that authorizes the company to repurchase $150 billion in shares. This repurchase authorization authorizes the computer hardware maker to buy up to 2.8% of its stock through open market purchases. Share repurchase programs are often an indication that the company’s board believes its stock is 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.