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

NVIDIA Corporation (NASDAQ:NVDA)’s share price traded down 2.4% on Thursday . The stock traded as low as $205.85 and last traded at $207.40. Approximately 120,870,101 shares traded hands during trading, a decline of 28% from the average daily volume of 167,054,922 shares. The stock had previously closed at $212.50.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA expanded its AI footprint in Japan with new partnerships across robotics, manufacturing, and public-sector infrastructure, including a national AI infrastructure initiative and the launch of Cosmos 3 Edge and Nemotron-based local AI projects. These moves reinforce NVDA’s role as the core platform for physical AI and could support long-term demand. Japan Government, Industrial Leaders and NVIDIA Launch the World’s First National AI Infrastructure
• Positive Sentiment: Multiple analysts raised earnings estimates for NVIDIA, with KeyCorp and Erste Group boosting forecasts and maintaining bullish ratings/price targets. That suggests Wall Street still sees strong profit growth ahead.
• Positive Sentiment: TSMC reported strong AI-driven demand, which is a positive read-through for NVIDIA’s supply chain and ongoing chip demand. TSMC Just Announced Fantastic News for Nvidia Shareholders
• Neutral Sentiment: Apple briefly overtook NVIDIA as the world’s most valuable company, highlighting a rotation in mega-cap leadership and renewed investor doubts about how much AI upside is already priced into NVDA. Apple dethrones Nvidia as world’s most valuable company, ending the chipmaker’s long run at the top
• Neutral Sentiment: Several articles point to a broader semiconductor sell-off and “sell the news” behavior in AI and chip stocks, which appears to be pressuring NVDA along with peers rather than reflecting a company-specific setback. Why Nvidia stock is down around 2.5% on Thursday
• Negative Sentiment: Market commentary from Jim Cramer and other bearish notes on semiconductors suggest some investors are rotating out of chip stocks, adding near-term pressure to NVDA sentiment. Jim Cramer Says Semiconductor Stocks Are “Going Down.” Buy These 2 Dividend Stocks Instead

Analyst Ratings Changes

Several research analysts recently commented on the company. TD Cowen reiterated a “buy” rating and issued a $275.00 price target (up from $235.00) on shares of NVIDIA in a research note on Friday, May 15th. President Capital raised their price objective on NVIDIA from $280.00 to $295.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Wolfe Research restated an “outperform” rating and set a $275.00 price objective on shares of NVIDIA in a report on Thursday, May 21st. 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. Finally, Stifel Nicolaus set a $282.00 target price on NVIDIA and gave the company a “buy” rating in a research note on Thursday, May 21st. Two research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $304.26.

NVIDIA Trading Down 2.2%

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 company has a market cap of $4.91 trillion, a price-to-earnings ratio of 31.06, a price-to-earnings-growth ratio of 0.46 and a beta of 2.21. The firm has a 50-day moving average price of $209.63 and a 200 day moving average price of $195.10.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings results 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. The business had revenue of $81.61 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%. The company’s quarterly revenue was up 85.2% on a year-over-year basis. During the same period in the previous year, the business posted $0.81 EPS. As a group, sell-side analysts forecast that NVIDIA Corporation will post 8.81 EPS for the current year.

NVIDIA Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were paid a $0.25 dividend. The ex-dividend date was Thursday, June 4th. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA’s payout ratio is presently 15.31%.

NVIDIA declared that its board has approved a stock buyback plan on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in shares. This buyback authorization authorizes the computer hardware maker to purchase up to 1.5% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s management believes its shares are undervalued.

Insider Transactions at NVIDIA

In related news, Director John Dabiri sold 625 shares of the business’s stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total transaction of $133,750.00. Following the completion of the transaction, the director owned 14,163 shares in the company, valued at $3,030,882. The trade was a 4.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of the company’s stock in a transaction on 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 transaction, the director owned 116,135 shares of the company’s stock, valued at approximately $25,053,803.55. The trade was a 11.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 1,901,125 shares of company stock worth $410,583,015. 3.94% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NVIDIA

Hedge funds and other institutional investors have recently modified their holdings of the company. Defender Capital LLC. lifted its position in NVIDIA by 0.7% in the second quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker’s stock valued at $1,507,000 after buying an additional 50 shares during the last quarter. Spectrum Financial Alliance Ltd LLC raised its stake in shares of NVIDIA by 3.8% in the 1st quarter. Spectrum Financial Alliance Ltd LLC now owns 1,395 shares of the computer hardware maker’s stock valued at $243,000 after acquiring an additional 51 shares during the period. Vision Financial Markets LLC raised its stake in shares of NVIDIA by 1.2% in the 3rd quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker’s stock valued at $866,000 after acquiring an additional 53 shares during the period. Presidio Capital Management LLC lifted its holdings in shares of NVIDIA by 0.4% in the 4th quarter. Presidio Capital Management LLC now owns 15,137 shares of the computer hardware maker’s stock worth $2,823,000 after acquiring an additional 53 shares during the last quarter. Finally, LMG Wealth Partners LLC lifted its holdings in shares of NVIDIA by 0.7% in the 4th quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker’s stock worth $1,427,000 after acquiring an additional 53 shares during the last quarter. Institutional investors and hedge funds 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.