NVIDIA (NASDAQ:NVDA) Shares Down 4.4% – Here’s What Happened

NVIDIA Corporation (NASDAQ:NVDA) shares dropped 4.4% during mid-day trading on Tuesday . The stock traded as low as $177.61 and last traded at $178.07. Approximately 218,312,412 shares were traded during trading, an increase of 29% from the average daily volume of 169,643,531 shares. The stock had previously closed at $186.23.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA signed a $20 billion non‑exclusive licensing deal with Groq, which supports long‑term ecosystem expansion and recurring revenue potential. Read More.
• Positive Sentiment: NVIDIA made a strategic $150M investment in AI inference startup Baseten to accelerate inference/service delivery — helps NVDA expand software + service capabilities beyond chips. Read More.
• Positive Sentiment: Several Wall Street firms have raised price targets and kept buy/outperform ratings (Jefferies, Mizuho, RBC, others), reinforcing bullish analyst sentiment and long‑term upside expectations. Read More.
• Positive Sentiment: Research pieces argue NVDA’s next phase is system/software‑led (Vera Rubin/platform integration), which could deepen ecosystem lock‑in and reduce pure GPU competition risk. Read More.
• Neutral Sentiment: NVIDIA’s Arm‑based N1/N1X laptop SoCs are reportedly set to debut in 2026 — a potential new market but not an immediate large revenue driver compared with data center sales. Read More.
• Neutral Sentiment: Third‑party coverage and stock‑price narratives (buy‑the‑dip pieces vs. crash risks) are prominent — keeps volatility elevated but reflects mixed investor positioning. Read More.
• Negative Sentiment: China appears to be holding up approvals/shipments of the H200 AI chip; suppliers reportedly paused output — a direct revenue/shipments headwind for NVDA in the China market. Read More.
• Negative Sentiment: Escalating U.S. tariff/tension headlines (Greenland tariff rhetoric) and export‑control worries have triggered a tech sector risk‑off that hit NVDA along with peers. Read More.
• Negative Sentiment: Heavy insider selling and chatter about regulatory/export risks are feeding investor caution; coupled with memory/HBM supply bottlenecks and supplier pauses (Micron/FT reports), near‑term delivery and margin execution concerns persist. Read More.

Analyst Upgrades and Downgrades

NVDA has been the subject of several research analyst reports. Wells Fargo & Company reaffirmed an “overweight” rating on shares of NVIDIA in a research note on Monday, December 29th. Stifel Nicolaus set a $250.00 target price on NVIDIA in a report on Thursday, January 8th. Seaport Global Securities lifted their price target on NVIDIA from $100.00 to $140.00 and gave the stock a “sell” rating in a research note on Monday, November 17th. Sanford C. Bernstein reissued a “buy” rating on shares of NVIDIA in a research note on Tuesday, January 6th. Finally, Cantor Fitzgerald restated an “overweight” rating and issued a $300.00 price objective on shares of NVIDIA in a report on Thursday, November 20th. Four investment analysts have rated the stock with a Strong Buy rating, forty-seven have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, NVIDIA currently has a consensus rating of “Moderate Buy” and a consensus price target of $263.41.

NVIDIA Price Performance

The stock has a market cap of $4.33 trillion, a PE ratio of 44.19, a price-to-earnings-growth ratio of 0.91 and a beta of 2.31. The stock’s fifty day moving average is $183.98 and its 200-day moving average is $181.15. The company has a debt-to-equity ratio of 0.06, a current ratio of 4.47 and a quick ratio of 3.71.

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

NVIDIA Dividend Announcement

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

Insiders Place Their Bets

In other NVIDIA news, Director Mark A. Stevens sold 350,000 shares of the stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $181.73, for a total transaction of $63,605,500.00. Following the completion of the transaction, the director owned 7,049,803 shares of the company’s stock, valued at $1,281,160,699.19. This trade represents a 4.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Debora Shoquist sold 80,000 shares of the business’s stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $178.90, for a total transaction of $14,312,000.00. Following the completion of the sale, the executive vice president directly owned 1,494,443 shares in the company, valued at $267,355,852.70. This trade represents a 5.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 1,611,474 shares of company stock worth $294,637,732. Corporate insiders own 4.17% of the company’s stock.

Hedge Funds Weigh In On NVIDIA

A number of hedge funds have recently made changes to their positions in NVDA. Voisard Asset Management Group Inc. raised its position in NVIDIA by 21.4% in the fourth quarter. Voisard Asset Management Group Inc. now owns 7,714 shares of the computer hardware maker’s stock valued at $1,439,000 after purchasing an additional 1,359 shares during the period. NavPoint Financial Inc. grew its stake in shares of NVIDIA by 32.3% in the fourth quarter. NavPoint Financial Inc. now owns 4,919 shares of the computer hardware maker’s stock valued at $917,000 after buying an additional 1,200 shares in the last quarter. BXM Wealth LLC raised its holdings in shares of NVIDIA by 720.1% in the 4th quarter. BXM Wealth LLC now owns 135,324 shares of the computer hardware maker’s stock valued at $25,238,000 after buying an additional 118,824 shares during the period. BAM Wealth Management LLC lifted its stake in NVIDIA by 17.1% during the 4th quarter. BAM Wealth Management LLC now owns 17,834 shares of the computer hardware maker’s stock worth $3,326,000 after acquiring an additional 2,601 shares in the last quarter. Finally, Independence Bank of Kentucky boosted its holdings in NVIDIA by 0.6% during the 4th quarter. Independence Bank of Kentucky now owns 128,613 shares of the computer hardware maker’s stock valued at $23,986,000 after acquiring an additional 769 shares during the period. Hedge funds and other institutional investors own 65.27% of the company’s stock.

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.