NVIDIA (NASDAQ:NVDA) Stock Price Down 2.4% – Here’s What Happened

NVIDIA Corporation (NASDAQ:NVDA) was down 2.4% during trading on Tuesday . The stock traded as low as $207.29 and last traded at $207.41. Approximately 123,713,808 shares were traded during mid-day trading, a decline of 28% from the average daily volume of 170,743,641 shares. The stock had previously closed at $212.45.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Multiple reports highlight continued strength in NVIDIA’s AI infrastructure business, including commentary that data center revenue is surging and that demand for “AI factories” remains strong. Investors are also reacting to bullish calls comparing new AI companies to NVIDIA’s early breakout years, reinforcing the market’s view that NVDA remains the core AI leader. Article Title
• Positive Sentiment: NVIDIA also announced broad ecosystem momentum, including HPE’s new agentic AI production offerings built with NVIDIA, which supports the company’s role at the center of enterprise AI deployment. Article Title
• Positive Sentiment: Analyst coverage remains constructive, with one report citing a median price target well above the current share price and arguing that growing AI demand still leaves room for upside in NVIDIA stock. Article Title
• Neutral Sentiment: NVIDIA is tapping the debt market for the first time in years with a large bond sale, which gives it extra financial flexibility to fund AI-chip production and infrastructure needs, but also signals the scale of capital required to keep up with demand. Article Title
• Neutral Sentiment: Several articles note NVIDIA’s enormous market cap and continued investor attention, including comparisons to other AI leaders and broader semiconductor strength, but these are mostly sentiment-driven rather than company-specific fundamentals. Article Title
• Negative Sentiment: Some commentary warns that AI investing is getting crowded and more speculative, and that major customers and competitors are exploring custom chips or alternative infrastructure, which could pressure NVIDIA’s long-term margin and share gains. Article Title

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on NVDA. Fundamental Research set a $218.00 target price on shares of NVIDIA in a research report on Thursday, February 26th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $300.00 target price (up from $275.00) on shares of NVIDIA in a research report on Thursday, May 21st. Wedbush upped their target price on shares of NVIDIA from $300.00 to $330.00 and gave the stock an “outperform” rating in a research report on Thursday, May 21st. Rosenblatt Securities reaffirmed a “buy” rating and issued a $325.00 target price on shares of NVIDIA in a research report on Thursday, May 21st. Finally, Itau BBA Securities reiterated a “market perform” rating on shares of NVIDIA in a research report on Thursday, February 26th. Three analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, NVIDIA has a consensus rating of “Buy” and an average target price of $305.67.

NVIDIA Stock Performance

The business’s fifty day moving average is $207.54 and its two-hundred day moving average is $191.65. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. The stock has a market capitalization of $5.02 trillion, a PE ratio of 31.76, a price-to-earnings-growth ratio of 0.46 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA) last posted its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. The firm had revenue of $81.62 billion during the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. NVIDIA’s revenue for the quarter was up 85.2% compared to the same quarter last year. During the same period last year, the firm posted $0.81 earnings per share. As a group, research analysts anticipate that NVIDIA Corporation will post 8.65 EPS for the current fiscal year.

NVIDIA Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be paid a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA’s payout ratio is presently 15.31%.

NVIDIA declared that its board has approved a stock repurchase program on Wednesday, May 20th that permits the company to buyback $80.00 billion in 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 typically a sign that the company’s leadership believes its shares are undervalued.

Insider Activity at NVIDIA

In other NVIDIA news, Director Aarti S. Shah sold 19,000 shares of NVIDIA stock in a transaction on Thursday, March 19th. The shares were sold at an average price of $176.71, for a total transaction of $3,357,490.00. Following the completion of the transaction, the director directly owned 36,007 shares of the company’s stock, valued at $6,362,796.97. The trade was a 34.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Ajay K. Puri sold 300,000 shares of the business’s stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $182.25, for a total transaction of $54,675,000.00. Following the sale, the executive vice president directly owned 3,018,547 shares of the company’s stock, valued at $550,130,190.75. This represents a 9.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,619,457 shares of company stock valued at $332,073,643 over the last three months. Corporate insiders own 3.94% of the company’s stock.

Institutional Trading of NVIDIA

Large investors have recently made changes to their positions in the stock. State Street Corp raised its holdings in shares of NVIDIA by 1.2% in the fourth quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker’s stock valued at $184,911,111,000 after acquiring an additional 11,451,386 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of NVIDIA by 0.6% in the fourth quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker’s stock valued at $109,446,217,000 after acquiring an additional 3,383,441 shares in the last quarter. Norges Bank bought a new stake in shares of NVIDIA in the fourth quarter valued at about $62,244,133,000. Bank of America Corp DE raised its holdings in shares of NVIDIA by 2.1% in the first quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker’s stock valued at $33,345,453,000 after acquiring an additional 4,019,505 shares in the last quarter. Finally, Legal & General Group Plc raised its holdings in shares of NVIDIA by 1.5% in the third quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker’s stock valued at $33,808,862,000 after acquiring an additional 2,609,560 shares in the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

NVIDIA Company Profile

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.