NVIDIA (NASDAQ:NVDA) Stock Falls 9.3% – Should You Sell?

NVIDIA Corporation (NASDAQ:NVDA)’s stock price dropped 9.3% on Thursday. The stock traded as low as $181.46 and last traded at $181.60. Approximately 300,814,832 shares traded hands during mid-day trading, an increase of 102% from the average session volume of 148,900,359 shares. The stock had previously closed at $200.13.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Box expanded its partnership with NVIDIA, incorporating NVIDIA’s Nemotron technology into new AI search and workflow tools. The deal provides another example of NVIDIA’s technology being adopted in enterprise products. Reuters: Box expands Nvidia partnership
• Neutral Sentiment: Chinese AI startup Moonshot is reportedly exploring access to NVIDIA Blackwell chips through European data centers, underscoring overseas demand. However, the effort also highlights export-control and geopolitical risks. CNBC: Moonshot seeks Nvidia chip access in Europe
• Negative Sentiment: Investors are concerned that political shifts could lead to restrictions, delays, or higher costs for data-center projects. UBS estimates that a significant portion of planned U.S. capacity for 2028 could be delayed if construction pauses spread, threatening a key source of AI-chip demand. The Motley Fool: AI selloff and data-center concerns
• Negative Sentiment: The decline is also part of a wider selloff in technology and AI stocks, with fears about infrastructure spending and financing weighing on chipmakers. NVIDIA’s shares have also broken below a widely watched 200-day moving average, which may add to near-term selling pressure. Invezz: AI spending fears and financing risks
• Negative Sentiment: Expectations remain demanding ahead of NVIDIA’s November 17 results: even strong growth may not be enough to lift the stock if investors expect the company to exceed its already ambitious outlook. The Motley Fool: Nvidia’s upcoming earnings

Analyst Ratings Changes

Several research analysts have recently weighed in on the company. KeyCorp restated an “overweight” rating and set a $330.00 target price on shares of NVIDIA in a report on Monday, August 24th. Rothschild & Co Redburn increased their price target on NVIDIA from $300.00 to $325.00 in a report on Thursday, August 27th. Zacks Research upgraded NVIDIA from a “hold” rating to a “strong-buy” rating in a research report on Monday, September 21st. Cantor Fitzgerald reissued an “overweight” rating and set a $350.00 price objective on shares of NVIDIA in a research note on Thursday, October 1st. Finally, KGI Securities raised their target price on NVIDIA from $335.00 to $345.00 in a research note on Thursday, August 27th. Five investment analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus price target of $318.85.

NVIDIA Price Performance

The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The firm has a market capitalization of $4.38 trillion, a price-to-earnings ratio of 22.96, a PEG ratio of 1.59 and a beta of 2.21. The stock has a 50 day moving average price of $221.19 and a two-hundred day moving average price of $204.51.

NVIDIA (NASDAQ:NVDA) last announced its 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 company had revenue of $96.22 billion during the quarter, compared to analysts’ expectations of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. NVIDIA’s revenue for the quarter was up 105.9% on a year-over-year basis. During the same period last year, the business posted $1.05 EPS. As a group, analysts expect that NVIDIA Corporation will post 9.30 EPS for the current year.

NVIDIA Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were issued a $0.25 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.6%. NVIDIA’s payout ratio is 12.64%.

NVIDIA announced that its Board of Directors has authorized a stock repurchase program on Monday, September 28th that allows the company to buy back $150 billion in shares. This buyback authorization allows the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Share buyback programs are typically a sign that the company’s leadership believes its stock is undervalued.

Insiders Place Their Bets

In other NVIDIA news, CFO Colette Kress sold 34,918 shares of NVIDIA stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the completion of the sale, the chief financial officer directly owned 765,103 shares of the company’s stock, valued at $167,595,812.15. The trade was a 4.36% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy S. Teter sold 30,460 shares of the firm’s stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $222.80, for a total value of $6,786,488.00. Following the sale, the executive vice president directly owned 2,687,660 shares in the company, valued at $598,810,648. This trade represents a 1.12% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,766,118 shares of company stock worth $399,450,353 in the last ninety days. 3.94% of the stock is owned by corporate insiders.

Institutional Trading of NVIDIA

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Silver Grove Financial Group Inc. raised its position in shares of NVIDIA by 4.0% in the 3rd quarter. Silver Grove Financial Group Inc. now owns 28,978 shares of the computer hardware maker’s stock valued at $6,618,000 after purchasing an additional 1,117 shares during the last quarter. Davis Investment Partners LLC grew its position in NVIDIA by 78.1% during the 3rd quarter. Davis Investment Partners LLC now owns 4,892 shares of the computer hardware maker’s stock worth $1,117,000 after purchasing an additional 2,145 shares during the last quarter. Inspire Trust Co. N.A. grew its position in NVIDIA by 4,788.7% during the 3rd quarter. Inspire Trust Co. N.A. now owns 52,065 shares of the computer hardware maker’s stock worth $11,891,000 after purchasing an additional 51,000 shares during the last quarter. Oak Barrel Wealth Advisory LLC increased its stake in NVIDIA by 0.7% during the 3rd quarter. Oak Barrel Wealth Advisory LLC now owns 12,339 shares of the computer hardware maker’s stock valued at $2,818,000 after purchasing an additional 87 shares in the last quarter. Finally, Bahl & Gaynor LLC raised its holdings in shares of NVIDIA by 70.6% in the third quarter. Bahl & Gaynor LLC now owns 378,401 shares of the computer hardware maker’s stock worth $86,419,000 after buying an additional 156,550 shares during the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.

About NVIDIA

NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.

The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.