NVIDIA (NASDAQ:NVDA) Trading Down 1.6% – Here’s What Happened

NVIDIA Corporation (NASDAQ:NVDA) shares were down 1.6% during trading on Wednesday . The stock traded as low as $209.23 and last traded at $209.66. Approximately 137,255,310 shares were traded during mid-day trading, a decline of 13% from the average session volume of 158,291,813 shares. The stock had previously closed at $213.05.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA reported fiscal Q2 revenue of $96.2 billion, up 106% year over year, while Data Center revenue climbed 117% to $89.0 billion. Adjusted EPS of $2.22 also exceeded the $2.09 consensus estimate. NVIDIA Announces Financial Results for Second Quarter Fiscal 2027
• Positive Sentiment: Management forecast approximately $108 billion in fiscal Q3 revenue and about 70% revenue growth for fiscal 2028, well above prior market expectations. CEO Jensen Huang said AI infrastructure demand is accelerating and that the buildout is “at full steam.” Nvidia rises after signaling longer AI spending runway
• Positive Sentiment: The expanded AWS partnership, including an additional 2 million NVIDIA GPUs, supports the view that hyperscaler demand remains strong. Analysts responded with higher targets, including JPMorgan’s $320 target and RBC’s $330 target. Amazon just tripled its order of Nvidia chips
• Positive Sentiment: NVIDIA is expanding its ecosystem beyond GPUs through Vera Rubin CPUs, open-source AI tools, compute-financing partnerships and reported interest in Hugging Face. These initiatives could deepen customer reliance on its full-stack platform. Nvidia agrees to buy Hugging Face for $12.9 billion, report says
• Neutral Sentiment: Investors briefly took profits after the earnings-driven semiconductor rally, suggesting that exceptionally high expectations may produce near-term volatility even when results remain strong. Nvidia, AMD, Intel stocks slide premarket
• Negative Sentiment: Fiscal Q3 gross margin is expected to ease to about 74% from 75%, while memory, packaging and power shortages could constrain shipments and raise costs.
• Negative Sentiment: NVIDIA’s outlook assumes no China data-center compute revenue, and Washington may impose further restrictions. Support for Chinese open-source models could increase regulatory and geopolitical exposure. Nvidia is bolstering support for Chinese open AI models
• Negative Sentiment: The reported pause in some AI-cloud revenue-sharing and financing deals raises questions about customer credit risk, cash-flow quality and whether NVIDIA is subsidizing demand. Nvidia pauses revenue-sharing deals with AI cloud companies

Analyst Ratings Changes

A number of brokerages have issued reports on NVDA. Seaport Research Partners boosted their target price on shares of NVIDIA from $140.00 to $180.00 and gave the company a “sell” rating in a report on Thursday, May 21st. DZ Bank reaffirmed a “buy” rating on shares of NVIDIA in a report on Thursday, May 21st. Weiss Ratings reiterated a “buy (b)” rating on shares of NVIDIA in a research report on Wednesday, July 8th. Bank of America reiterated a “buy” rating and set a $350.00 price objective (up from $320.00) on shares of NVIDIA in a research note on Thursday, May 21st. Finally, DA Davidson reissued a “buy” rating and set a $300.00 price objective on shares of NVIDIA in a report on Thursday. Two equities research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $322.61.

NVIDIA Stock Up 8.7%

The company’s 50 day simple moving average is $207.95 and its 200-day simple moving average is $200.66. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The firm has a market capitalization of $5.52 trillion, a PE ratio of 28.82, a PEG ratio of 0.41 and a beta of 2.23.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. The firm had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 107.00%. The business’s revenue for the quarter was up 105.9% on a year-over-year basis. During the same period in the previous year, the business earned $1.05 EPS. On average, analysts forecast that NVIDIA Corporation will post 8.8 EPS for the current fiscal year.

NVIDIA Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be paid a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.4%. 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 allows the company to buyback $80.00 billion in shares. This buyback authorization allows the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Activity

In other NVIDIA news, Director Mark A. Stevens sold 885,000 shares of the company’s stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $210.17, for a total value of $186,000,450.00. Following the transaction, the director directly owned 5,207,271 shares in the company, valued at $1,094,412,146.07. This represents a 14.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Stephen C. Neal sold 15,500 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total value of $3,343,815.00. Following the completion of 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 position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 1,900,500 shares of company stock valued at $410,449,265. 3.94% of the stock is owned by company insiders.

Institutional Investors Weigh In On NVIDIA

Institutional investors and hedge funds have recently bought and sold shares of the stock. Retirement Wealth Solutions LLC increased its stake in NVIDIA by 1.2% in the second quarter. Retirement Wealth Solutions LLC now owns 4,121 shares of the computer hardware maker’s stock valued at $825,000 after acquiring an additional 47 shares during the last quarter. LightSquare Wealth Management LLC lifted its stake in NVIDIA by 0.3% during the second quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker’s stock worth $3,741,000 after purchasing an additional 49 shares during the last quarter. Defender Capital LLC. boosted its holdings in shares of NVIDIA by 0.7% in the 2nd quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker’s stock worth $1,507,000 after purchasing an additional 50 shares in the last quarter. Kooman & Associates boosted its holdings in shares of NVIDIA by 0.6% in the 2nd quarter. Kooman & Associates now owns 8,464 shares of the computer hardware maker’s stock worth $1,694,000 after purchasing an additional 50 shares in the last quarter. Finally, Roof Eidam Maycock Peralta LLC increased its position in shares of NVIDIA by 0.3% during the 2nd quarter. Roof Eidam Maycock Peralta LLC now owns 18,827 shares of the computer hardware maker’s stock valued at $3,767,000 after purchasing an additional 50 shares during the last quarter. 65.27% of the stock is 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.