NVIDIA (NASDAQ:NVDA) Trading Down 2.8% – Should You Sell?

NVIDIA Corporation (NASDAQ:NVDA)’s stock price fell 2.8% on Tuesday . The stock traded as low as $176.23 and last traded at $180.34. 201,960,199 shares traded hands during mid-day trading, an increase of 21% from the average session volume of 166,323,234 shares. The stock had previously closed at $185.61.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Nvidia-backed UK AI firm Nscale is preparing an IPO (Goldman/JPMorgan hired), which signals continued dealflow and ecosystem monetization for NVIDIA’s partner network. Nscale hires banks for IPO
• Positive Sentiment: New commercial partnerships and platform integrations (e.g., Dassault Systèmes) expand NVIDIA’s TAM beyond hyperscalers into industrial AI and virtual twins, supporting long-term demand for GPUs and software. Dassault Systèmes partnership
• Positive Sentiment: China export approvals and reported H200 chip orders have reopened a key revenue stream for NVDA, boosting the data-center growth narrative and near-term sales visibility. Quiver: H200 export boost & earnings commentary
• Neutral Sentiment: CEO Jensen Huang publicly pushed back on deal-controversy reports, saying the company’s plan to invest in OpenAI is “on track” and that NVIDIA would consider investing in OpenAI’s IPO — comments that curb downside but leave deal size/timing unclear. Huang denies controversy
• Negative Sentiment: Reports say Nvidia and OpenAI appear stalled on the previously announced mega-deal and OpenAI has explored rival chip suppliers; separate reporting says OpenAI is unsatisfied with some Nvidia chips — this creates near-term revenue uncertainty and strategic risk. CNBC: stalled deal Reuters: OpenAI unsatisfied with chips
• Negative Sentiment: Ongoing headlines about internal pushback on the $100B OpenAI investment, plus extensive insider selling activity shown in filings, have increased short-term investor jitters despite strong fundamentals. Fool: risks and insider context Quiver: insider transactions
• Neutral Sentiment: Competitive moves (Intel announcing new GPUs) are being watched by investors as a longer-term risk to margins and market share, but NVIDIA’s CUDA ecosystem and production lead still favor the near-term outlook. TechCrunch: Intel to make GPUs

Analyst Ratings Changes

Several research analysts have recently weighed in on the company. The Goldman Sachs Group restated a “buy” rating and set a $240.00 target price (up from $210.00) on shares of NVIDIA in a report on Friday, October 31st. Arete Research boosted their price target on shares of NVIDIA from $244.00 to $261.00 and gave the company a “buy” rating in a research report on Tuesday, November 25th. Raymond James Financial restated a “strong-buy” rating on shares of NVIDIA in a research report on Tuesday, January 6th. Wells Fargo & Company restated an “overweight” rating on shares of NVIDIA in a report on Monday, December 29th. Finally, Stifel Nicolaus set a $250.00 price target on shares of NVIDIA in a research report on Thursday, January 8th. Four analysts have rated the stock with a Strong Buy rating, forty-seven have issued a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Buy” and an average target price of $263.98.

NVIDIA Trading Down 2.8%

The company has a fifty day simple moving average of $184.15 and a two-hundred day simple moving average of $182.71. The company has a market cap of $4.38 trillion, a PE ratio of 44.75, a P/E/G ratio of 0.93 and a beta of 2.31. The company has a current ratio of 4.47, a quick ratio of 3.71 and a debt-to-equity ratio of 0.06.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings results on Wednesday, November 19th. The computer hardware maker reported $1.30 EPS for the quarter, topping the consensus estimate of $1.23 by $0.07. The company had revenue of $57.01 billion during the quarter, compared to analysts’ expectations of $54.66 billion. NVIDIA had a net margin of 53.01% and a return on equity of 99.24%. The firm’s revenue was up 62.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.81 EPS. 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. Stockholders of record on Thursday, December 4th were given a dividend of $0.01 per share. This represents a $0.04 annualized dividend and a dividend yield of 0.0%. The ex-dividend date of this dividend was Thursday, December 4th. NVIDIA’s dividend payout ratio (DPR) is 0.99%.

Insider Activity at NVIDIA

In other news, CFO Colette Kress sold 27,640 shares of the business’s stock in a transaction that occurred on Tuesday, January 13th. The shares were sold at an average price of $184.92, for a total transaction of $5,111,188.80. Following the completion of the sale, the chief financial officer owned 874,412 shares in the company, valued at approximately $161,696,267.04. The trade was a 3.06% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Ajay K. Puri sold 200,000 shares of NVIDIA stock in a transaction dated Wednesday, January 21st. The stock was sold at an average price of $180.04, for a total value of $36,008,000.00. Following the sale, the executive vice president owned 3,618,547 shares in the company, valued at $651,483,201.88. This trade represents a 5.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,563,834 shares of company stock valued at $283,360,391 in the last quarter. Company insiders own 4.17% of the company’s stock.

Institutional Investors Weigh In On NVIDIA

Large investors have recently modified their holdings of the company. Norges Bank acquired a new position in NVIDIA in the 2nd quarter valued at about $51,386,863,000. Capital Research Global Investors lifted its position in NVIDIA by 16.1% during the 3rd quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker’s stock worth $30,855,564,000 after acquiring an additional 22,896,705 shares during the period. Laurel Wealth Advisors LLC grew its stake in shares of NVIDIA by 15,496.1% in the 2nd quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker’s stock valued at $3,454,534,000 after purchasing an additional 21,725,326 shares during the last quarter. Danske Bank A S acquired a new position in shares of NVIDIA in the third quarter valued at approximately $3,180,313,000. Finally, Massachusetts Financial Services Co. MA raised its stake in shares of NVIDIA by 25.0% during the third quarter. Massachusetts Financial Services Co. MA now owns 71,720,593 shares of the computer hardware maker’s stock worth $13,381,628,000 after purchasing an additional 14,358,048 shares during the last quarter. 65.27% of the stock is owned by institutional investors and hedge funds.

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.