NVIDIA (NASDAQ:NVDA) Trading Down 3.6% – Here’s What Happened

NVIDIA Corporation (NASDAQ:NVDA)’s stock price fell 3.6% during trading on Wednesday . The stock traded as low as $190.01 and last traded at $190.01. 145,178,867 shares were traded during trading, a decline of 12% from the average session volume of 164,486,844 shares. The stock had previously closed at $197.01.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: AI demand remains robust: NVIDIA partner SK Hynix reported a more than sixfold increase in quarterly operating profit, citing strong demand for advanced memory used in AI data centers. NVIDIA’s HBM supply relationships support the company’s system-level architecture and future growth visibility. SK Hynix posts sixfold rise in Q2 profit on AI chip demand
• Positive Sentiment: Analysts and investors continue to see upside: Erste Group modestly raised its fiscal 2027 and 2028 EPS estimates, while UBS said the semiconductor selloff and “circular financing” concerns appear overblown. Commentators also highlighted NVIDIA’s high profitability, including a gross margin above 70%, strong return on invested capital and leadership in complete AI systems rather than chips alone. Chip selloff overblown, UBS says
• Positive Sentiment: Expansion beyond data centers: CEO Jensen Huang’s focus on robotics and “physical AI” provides an additional long-term growth narrative across manufacturing, autos and other industries. NVIDIA stock rebounds on robotics expansion

Analyst Upgrades and Downgrades

NVDA has been the topic of several research analyst reports. Wells Fargo & Company restated an “overweight” rating and issued a $315.00 price target (up from $265.00) on shares of NVIDIA in a research report on Tuesday, May 12th. Tigress Financial reaffirmed a “strong-buy” rating and set a $425.00 price objective (up from $360.00) on shares of NVIDIA in a research report on Wednesday, May 27th. Jefferies Financial Group reiterated a “buy” rating and issued a $300.00 target price (up from $275.00) on shares of NVIDIA in a research note on Thursday, May 21st. Benchmark reissued a “buy” rating and set a $335.00 target price (up from $250.00) on shares of NVIDIA in a research report on Thursday, May 21st. Finally, Mizuho set a $300.00 price target on NVIDIA in a research note on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Buy” and an average price target of $304.26.

NVIDIA Stock Performance

The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. The stock has a fifty day simple moving average of $206.86 and a 200-day simple moving average of $195.98. The company has a market capitalization of $4.60 trillion, a P/E ratio of 29.10, a PEG ratio of 0.38 and a beta of 2.21.

NVIDIA (NASDAQ:NVDA) last posted its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, topping the consensus estimate of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business had revenue of $81.61 billion for the quarter, compared to analyst estimates of $78.42 billion. During the same quarter in the prior year, the firm earned $0.81 EPS. The firm’s quarterly revenue was up 85.2% compared to the same quarter last year. Equities analysts forecast that NVIDIA Corporation will post 8.79 EPS for the current year.

NVIDIA Increases Dividend

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

NVIDIA declared that its Board of Directors has approved a stock repurchase program on Wednesday, May 20th that allows the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to repurchase 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 shares are undervalued.

Insider Buying and Selling

In other news, Director John Dabiri sold 625 shares of the stock in a transaction 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 sale, the director owned 14,163 shares in the company, valued at approximately $3,030,882. This represents a 4.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the transaction, the director directly owned 5,207,271 shares of the company’s stock, valued at $1,094,412,146.07. This represents a 14.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,901,125 shares of company stock worth $410,583,015 in the last three months. Insiders own 3.94% of the company’s stock.

Institutional Investors Weigh In On NVIDIA

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Lifetime Wealth Management P.C. acquired a new stake in shares of NVIDIA in the 4th quarter valued at $26,000. Longview Financial Advisors Inc. acquired a new stake in NVIDIA in the first quarter worth about $27,000. Longfellow Investment Management Co. LLC raised its holdings in NVIDIA by 47.9% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after purchasing an additional 67 shares during the last quarter. Phillip James Consulting Co. acquired a new position in NVIDIA during the 1st quarter valued at about $40,000. Finally, Inspire Investing LLC bought a new position in shares of NVIDIA in the 4th quarter valued at about $44,000. 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.