NVIDIA (NASDAQ:NVDA) Shares Down 3.4% – Time to Sell?

NVIDIA Corporation (NASDAQ:NVDA) fell 3.4% on Wednesday . The stock traded as low as $171.91 and last traded at $174.19. 203,386,412 shares traded hands during trading, an increase of 21% from the average session volume of 168,033,641 shares. The stock had previously closed at $180.34.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Nvidia is reported to be nearing a roughly $20 billion investment into OpenAI, which would deepen its strategic ties to a major AI customer and signal long-term demand for Nvidia GPUs and services. Nvidia nears deal to invest $20 billion in OpenAI funding round, Bloomberg News reports
• Positive Sentiment: Big-cloud capex is picking up: Google’s ramp in AI spending lifted chip names, and Reuters/CNBC coverage shows hyperscaler investment remains a tailwind for Nvidia’s data-center GPU demand. Broadcom, Nvidia shares rise on surging Google capital expenditures for AI
• Positive Sentiment: Institutional buying: Davis Selected Advisers reportedly added to its NVDA stake, a sign of continued long-only investor appetite at the institutional level. That supports the view that large holders remain committed despite recent volatility. Davis Selected Advisers boosts Nvidia stake by 21k shares
• Neutral Sentiment: MarketBeat and analyst pieces continue to list NVDA as a top setup into upcoming reports (guidance-driven season). These reminders keep expectations high but also raise the bar for near-term earnings/upgrade catalysts. Palantir and Woodward Jumped on Earnings Beats—Here Are 3 More Setups to Watch (NVDA)
• Neutral Sentiment: High-profile commentary (Jim Cramer and others) describes NVDA as a “coiled spring” — bullish in tone but also reflective of a stock that’s pausing, which can mean chop ahead as expectations get digested. Jim Cramer on NVIDIA: “I Call It a Coiled Spring”
• Negative Sentiment: Regulatory uncertainty: Reuters reports the U.S. government is willing to allow H200 chip sales to ByteDance only under conditions Nvidia hasn’t agreed to — prolonging China sales ambiguity and keeping a material revenue stream in limbo. That geopolitical/regulatory risk is a clear headwind. Exclusive: Nvidia’s AI chip sale to ByteDance hinges on conditions set by Trump administration
• Negative Sentiment: Broader software/tech selloff is dragging NVDA: analysts note the stock is being swept up in an indiscriminate software/AI pullback, amplifying short-term downside even as Nvidia’s fundamentals remain strong. Nvidia’s stock gets swept up in software selloff, but this analyst says that makes no sense

Analyst Ratings Changes

A number of equities analysts have issued reports on NVDA shares. Wedbush upped their target price on NVIDIA from $210.00 to $230.00 and gave the stock an “outperform” rating in a report on Thursday, November 20th. Wolfe Research upped their price objective on NVIDIA from $250.00 to $275.00 and gave the company an “outperform” rating in a research note on Friday, January 30th. Deutsche Bank Aktiengesellschaft raised their price target on shares of NVIDIA from $180.00 to $215.00 and gave the company a “hold” rating in a research note on Thursday, November 20th. Royal Bank Of Canada reiterated a “buy” rating on shares of NVIDIA in a report on Thursday, January 15th. Finally, William Blair restated an “outperform” rating on shares of NVIDIA in a report on Tuesday, January 6th. Four analysts have rated the stock with a Strong Buy rating, forty-seven have assigned a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, NVIDIA currently has an average rating of “Buy” and a consensus price target of $263.98.

NVIDIA Price Performance

The firm has a market cap of $4.23 trillion, a P/E ratio of 43.22, a P/E/G ratio of 0.57 and a beta of 2.31. The company has a quick ratio of 3.71, a current ratio of 4.47 and a debt-to-equity ratio of 0.06. The business’s 50 day moving average is $184.21 and its two-hundred day moving average is $182.77.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings results on Wednesday, November 19th. The computer hardware maker reported $1.30 EPS for the quarter, beating analysts’ consensus estimates of $1.23 by $0.07. NVIDIA had a net margin of 53.01% and a return on equity of 99.24%. The business had revenue of $57.01 billion for the quarter, compared to analysts’ expectations of $54.66 billion. During the same quarter in the prior year, the firm posted $0.81 earnings per share. The business’s quarterly revenue was up 62.5% compared to the same quarter last year. As a group, analysts anticipate that NVIDIA Corporation will post 2.77 earnings per share for the current year.

NVIDIA Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, December 26th. Investors of record on Thursday, December 4th were paid a dividend of $0.01 per share. The ex-dividend date of this dividend was Thursday, December 4th. This represents a $0.04 annualized dividend and a yield of 0.0%. NVIDIA’s dividend payout ratio (DPR) is currently 0.99%.

Insiders Place Their Bets

In other news, Director Mark A. Stevens sold 222,500 shares of NVIDIA stock in a transaction on Friday, December 19th. The shares were sold at an average price of $180.17, for a total value of $40,087,825.00. Following the completion of the sale, the director owned 7,621,453 shares in the company, valued at $1,373,157,187.01. The trade was a 2.84% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Harvey C. Jones sold 250,000 shares of the business’s stock in a transaction on Monday, December 15th. The shares were sold at an average price of $177.33, for a total transaction of $44,332,500.00. Following the transaction, the director owned 6,933,280 shares in the company, valued at $1,229,478,542.40. The trade was a 3.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,563,834 shares of company stock valued at $283,360,391 in the last 90 days. Company insiders own 4.17% of the company’s stock.

Institutional Investors Weigh In On NVIDIA

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Harbor Asset Planning Inc. bought a new position in shares of NVIDIA in the 2nd quarter worth $28,000. Winnow Wealth LLC bought a new stake in NVIDIA during the 2nd quarter valued at $32,000. Longfellow Investment Management Co. LLC raised its holdings in NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after buying an additional 67 shares during the last quarter. Spurstone Advisory Services LLC bought a new position in shares of NVIDIA in the second quarter valued at $40,000. Finally, Syntax Research Inc. lifted its stake in shares of NVIDIA by 62.5% in the fourth quarter. Syntax Research Inc. now owns 260 shares of the computer hardware maker’s stock valued at $49,000 after buying an additional 100 shares in the last quarter. 65.27% of the stock is owned by 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.