NVIDIA (NASDAQ:NVDA) Shares Down 2.4% – What’s Next?

NVIDIA Corporation (NASDAQ:NVDA)’s stock price fell 2.4% during trading on Thursday . The stock traded as low as $217.20 and last traded at $218.36. 100,702,071 shares changed hands during mid-day trading, a decline of 36% from the average session volume of 157,938,500 shares. The stock had previously closed at $223.67.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA and Palantir launched a sovereign-AI stack for critical supply chains, initially deploying it across NVIDIA’s own manufacturing and logistics operations. The partnership could expand demand for NVIDIA’s chips, networking and software platform among industrial and government customers. NVIDIA and Palantir Bring Sovereign Intelligence to Critical Supply Chains
• Positive Sentiment: NVIDIA is working with Australian cloud and data-center partners on infrastructure that could support up to 2 gigawatts of AI capacity by 2027, strengthening its long-term position in regional AI computing. Nvidia Teams Up With Australian Partners to Build AI Factory Capacity
• Positive Sentiment: Chip startup d-Matrix plans to use NVIDIA’s chip-linking technology in its AI servers, while SolarEdge published an 800-volt data-center power framework with NVIDIA. These announcements support adoption of NVIDIA’s broader hardware and infrastructure ecosystem. Chip Startup d-Matrix to Use Nvidia Chip-Linking Technology
• Neutral Sentiment: CEO Jensen Huang identified cybersecurity as a potential next major AI application, suggesting opportunities beyond coding assistants. However, the comments are strategic rather than an immediate revenue catalyst. Nvidia CEO Says Cybersecurity Is AI’s Next Blockbuster App
• Neutral Sentiment: TSMC reported a 53.3% year-over-year revenue increase for August, confirming robust semiconductor and AI infrastructure demand. At the same time, higher manufacturing, memory and advanced-packaging costs could pressure chip designers’ margins.
• Negative Sentiment: The U.S. Department of Justice is reportedly investigating whether NVIDIA’s licensing deal with AI startup Groq was structured to avoid antitrust scrutiny. Regulatory uncertainty could increase legal costs and limit future deal flexibility. DOJ Probes Nvidia’s Licensing Deal With Groq
• Negative Sentiment: Director Mark Stevens has sold more than $235 million of NVIDIA shares in recent transactions, adding to concerns about insider profit-taking after the stock’s substantial rally. NVIDIA Director Sells 400,000 Shares
• Negative Sentiment: Investors are also comparing NVIDIA with Broadcom and AMD as rising yields compress technology valuations. Despite exceptional recent earnings growth, the stock’s premium valuation leaves it vulnerable to profit-taking and shifts in risk appetite.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. HSBC boosted their target price on shares of NVIDIA from $360.00 to $365.00 in a research note on Thursday, August 27th. Truist Financial boosted their price objective on NVIDIA from $307.00 to $346.00 and gave the stock a “buy” rating in a research report on Thursday, August 27th. Seaport Research Partners upped their target price on NVIDIA from $140.00 to $180.00 and gave the stock a “sell” rating in a report on Thursday, May 21st. Evercore set a $465.00 target price on NVIDIA and gave the company an “outperform” rating in a research report on Thursday, August 27th. Finally, William Blair reissued an “outperform” rating on shares of NVIDIA in a research note on Tuesday, June 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $324.34.

NVIDIA Trading Down 2.4%

The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The company has a market cap of $5.26 trillion, a price-to-earnings ratio of 27.61, a PEG ratio of 1.77 and a beta of 2.22. The firm has a 50 day moving average price of $212.35 and a two-hundred day moving average price of $203.02.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. The company had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The firm’s quarterly revenue was up 105.9% on a year-over-year basis. During the same period in the previous year, the firm earned $1.05 earnings per share. As a group, equities analysts forecast that NVIDIA Corporation will post 9.1 earnings per share for the current year.

NVIDIA Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Thursday, September 10th. NVIDIA’s dividend payout ratio is currently 12.64%.

NVIDIA announced that its board has approved a share buyback plan on Wednesday, May 20th that permits the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization permits the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

Insiders Place Their Bets

In other NVIDIA news, EVP Timothy S. Teter sold 30,000 shares of the stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the completion of the sale, the executive vice president directly owned 2,687,660 shares in the company, valued at approximately $585,587,360.80. This trade represents a 1.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, 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 stock was 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 approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 2,585,740 shares of company stock valued at $571,015,527 in the last three months. 3.94% of the stock is owned by insiders.

Institutional Investors Weigh In On NVIDIA

Several institutional investors and hedge funds have recently made changes to their positions in the business. Montgomery Financial Services LLC acquired a new position in shares of NVIDIA during the 2nd quarter valued at $28,000. Lifetime Wealth Management P.C. acquired a new stake in NVIDIA in the fourth quarter worth $26,000. Longview Financial Advisors Inc. acquired a new stake in NVIDIA in the first quarter worth $27,000. Longfellow Investment Management Co. LLC increased its stake in NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after purchasing an additional 67 shares in the last quarter. Finally, Phillip James Consulting Co. bought a new stake in NVIDIA in the first quarter valued at $40,000. Institutional investors own 65.27% of the company’s stock.

NVIDIA Company Profile

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company’s offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.