NVIDIA (NASDAQ:NVDA) Trading Down 1.3% – Here’s Why

Shares of NVIDIA Corporation (NASDAQ:NVDA) traded down 1.3% during mid-day trading on Wednesday . The stock traded as low as $203.08 and last traded at $204.65. Approximately 125,947,335 shares changed hands during mid-day trading, a decline of 26% from the average daily volume of 170,679,078 shares. The stock had previously closed at $207.41.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s AI momentum remains strong after CEO Jensen Huang highlighted continued hardware demand, suggesting the company is still early in the AI spending cycle. 13 Words From Jensen Huang That Spell Good News for Nvidia Shareholders
• Positive Sentiment: HPE expanded its “HPE AI Factory with NVIDIA” offering to support agentic AI and autonomous workflows, underscoring broader enterprise adoption of NVIDIA’s platform. HPE Expands AI Factory with NVIDIA (NVDA) to Support Agentic AI and Autonomous Workflows
• Positive Sentiment: NVIDIA announced new AI partnerships with six major South Korean companies, expanding its international growth opportunities and strengthening demand visibility outside the U.S. Nvidia (NVDA) Announces Artificial Intelligence Partnerships with 6 Major South Korean Companies
• Positive Sentiment: IDC data showing NVIDIA took the No. 1 spot in data center Ethernet switching by revenue suggests the company is gaining share beyond GPUs and broadening its data-center footprint. Nvidia takes No. 1 spot in data center ethernet switching by revenue in Q1: IDC
• Positive Sentiment: Recent articles also point to NVIDIA benefiting from a broader AI infrastructure buildout, including new ecosystem funds and partner projects that keep its hardware central to the market’s AI trade. Nvidia Ecosystem ETF Debuts, Offering Exposure To The AI Buildout
• Neutral Sentiment: Some coverage notes that competitors like Amazon and Google are moving deeper into custom AI chips, which could intensify long-term competition for NVIDIA’s dominance. Amazon hopes to challenge Nvidia more directly by selling its AI chips
• Neutral Sentiment: There is also a mix of investor debate around AI spending sustainability, with some analysts warning of a potential bubble even as others remain bullish on NVIDIA’s earnings power. Nvidia: 3 Reasons Why The Stock Will Continue To Trail The Market

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the company. Truist Financial increased their price target on NVIDIA from $287.00 to $307.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. DA Davidson reiterated a “buy” rating and set a $300.00 price objective on shares of NVIDIA in a research report on Monday, June 1st. BTIG Research began coverage on shares of NVIDIA in a research note on Wednesday, April 15th. They issued a “buy” rating for the company. Fundamental Research set a $218.00 target price on shares of NVIDIA in a report on Thursday, February 26th. Finally, Mizuho set a $300.00 target price on shares of NVIDIA in a report on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Buy” and an average target price of $305.67.

NVIDIA Price Performance

The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. The stock has a market capitalization of $5.10 trillion, a P/E ratio of 32.26, a price-to-earnings-growth ratio of 0.46 and a beta of 2.22. The stock has a 50 day moving average of $209.33 and a 200-day moving average of $192.25.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating the consensus estimate of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. During the same quarter in the prior year, the company posted $0.81 EPS. NVIDIA’s quarterly revenue was up 85.2% on a year-over-year basis. On average, equities research analysts anticipate that NVIDIA Corporation will post 8.65 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Thursday, June 4th will be issued a $0.25 dividend. The ex-dividend date is Thursday, June 4th. 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%. NVIDIA’s dividend payout ratio (DPR) is currently 15.31%.

NVIDIA declared that its board has approved a stock buyback program on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to reacquire up to 1.5% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling

In other news, Director John Dabiri sold 625 shares of the firm’s stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the transaction, the director directly owned 14,163 shares of the company’s stock, valued at approximately $3,030,882. This trade represents a 4.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 500,000 shares of NVIDIA stock in a transaction that occurred on Thursday, June 4th. The shares were 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 $1,406,861,658.93. This represents a 7.25% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,016,125 shares of company stock valued at $224,582,565 in the last 90 days. Company insiders own 3.94% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. Lifetime Wealth Management P.C. purchased a new position in NVIDIA during the 4th quarter valued at about $26,000. Longview Financial Advisors Inc. bought a new stake in NVIDIA during the 1st quarter valued at $27,000. Longfellow Investment Management Co. LLC increased its holdings in shares of NVIDIA by 47.9% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after acquiring an additional 67 shares during the period. Phillip James Consulting Co. purchased a new position in shares of NVIDIA in the 1st quarter valued at $40,000. Finally, Spurstone Advisory Services LLC bought a new position in shares of NVIDIA in the 2nd quarter worth $40,000. 65.27% of the stock is currently 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.