NVIDIA (NASDAQ:NVDA) Stock Price Down 3.7% – Here’s What Happened

Shares of NVIDIA Corporation (NASDAQ:NVDA) were down 3.7% during mid-day trading on Wednesday . The stock traded as low as $199.92 and last traded at $200.42. Approximately 157,116,683 shares were traded during trading, a decline of 9% from the average daily volume of 172,283,188 shares. The stock had previously closed at $208.19.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: DA Davidson said NVIDIA’s profit margins look relatively safe through 2030, reinforcing the view that the company’s earnings power can stay strong even as competition and capex rise.
• Positive Sentiment: Reuters reported that OpenAI is weighing a 10-gigawatt Ohio data center lease that could include NVIDIA backing, which would further validate demand for NVIDIA’s AI infrastructure ecosystem.
• Positive Sentiment: Multiple outlets highlighted new and expanding partnerships in South Korea, including collaboration plans with SK Group and continued efforts to secure HBM memory supply for next-gen Rubin chips, which supports NVIDIA’s supply chain and future production capacity.
• Positive Sentiment: Commentary from Jim Cramer, analysts, and bullish research pieces continued to frame NVIDIA as the key AI leader, with strong demand, robust Blackwell ramp expectations, and favorable analyst sentiment.
• Neutral Sentiment: Several articles emphasized that NVIDIA remains central to the AI trade, but also noted growing investor interest in alternative beneficiaries such as Micron, Intel, and other “next wave” AI infrastructure names.
• Negative Sentiment: The immediate drag on NVDA is the sector-wide chip rout: Broadcom, AMD, and other semiconductor names also fell sharply, and NVIDIA was hit as part of that broader de-risking move.
• Negative Sentiment: Some articles raised valuation and positioning concerns, including mentions of billionaire/institutional selling and skepticism that the stock’s recent dominance can continue without pauses or rotation.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on NVDA shares. Wells Fargo & Company restated an “overweight” rating and set a $315.00 price objective (up from $265.00) on shares of NVIDIA in a report on Tuesday, May 12th. KeyCorp set a $310.00 price objective on NVIDIA and gave the stock an “overweight” rating in a report on Thursday, May 21st. Weiss Ratings reiterated a “buy (b)” rating on shares of NVIDIA in a report on Friday, April 10th. Royal Bank Of Canada set a $280.00 target price on NVIDIA in a report on Thursday, May 21st. Finally, Itau BBA Securities reiterated a “market perform” rating on shares of NVIDIA in a report on Thursday, February 26th. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, NVIDIA currently has a consensus rating of “Buy” and a consensus target price of $305.67.

NVIDIA Stock Performance

The stock has a 50 day simple moving average of $204.93 and a 200 day simple moving average of $190.93. The company has a market cap of $4.85 trillion, a price-to-earnings ratio of 30.69, a PEG ratio of 0.47 and a beta of 2.22. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping analysts’ consensus estimates of $1.76 by $0.11. The company had revenue of $81.62 billion for the quarter, compared to analysts’ expectations of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The firm’s quarterly revenue was up 85.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.81 earnings per share. As a group, analysts predict that NVIDIA Corporation will post 8.61 EPS for the current year.

NVIDIA Increases Dividend

The business 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. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Thursday, June 4th. NVIDIA’s payout ratio is presently 15.31%.

NVIDIA declared that its Board of Directors has approved a share buyback program on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to buy up to 1.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling at NVIDIA

In other news, Director Mark A. Stevens sold 500,000 shares of NVIDIA stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $219.83, for a total transaction of $109,915,000.00. Following the sale, the director directly owned 6,399,771 shares of the company’s stock, valued at approximately $1,406,861,658.93. The trade was a 7.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Stephen C. Neal sold 15,500 shares of NVIDIA stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total value of $3,343,815.00. Following the sale, the director directly owned 116,135 shares in the company, valued at approximately $25,053,803.55. The trade was a 11.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 1,622,461 shares of company stock valued at $332,629,083. Company insiders own 3.94% of the company’s stock.

Institutional Trading of NVIDIA

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Curry Webb Wealth Management LLC bought a new stake in NVIDIA in the first quarter valued at about $358,000. FAS Wealth Partners Inc. increased its holdings in NVIDIA by 6.7% in the first quarter. FAS Wealth Partners Inc. now owns 157,406 shares of the computer hardware maker’s stock valued at $27,452,000 after buying an additional 9,833 shares during the last quarter. Rathbones Group PLC increased its holdings in NVIDIA by 5.7% in the first quarter. Rathbones Group PLC now owns 6,048,138 shares of the computer hardware maker’s stock valued at $1,054,795,000 after buying an additional 325,945 shares during the last quarter. Robinswood Financial LLC bought a new stake in NVIDIA in the first quarter valued at about $432,000. Finally, Positano Wealth Management Ltd increased its holdings in NVIDIA by 20.5% in the first quarter. Positano Wealth Management Ltd now owns 121,352 shares of the computer hardware maker’s stock valued at $21,164,000 after buying an additional 20,660 shares during 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.