NVIDIA (NASDAQ:NVDA) Shares Down 2% – Should You Sell?

NVIDIA Corporation (NASDAQ:NVDA)’s share price dropped 2% during trading on Tuesday . The stock traded as low as $224.85 and last traded at $225.73. 118,663,629 shares traded hands during mid-day trading, a decline of 25% from the average session volume of 158,553,531 shares. The stock had previously closed at $230.36.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s recent quarterly results remain the key bullish backdrop: revenue reached $96.2 billion, up 106% year over year, while management indicated roughly 70% revenue growth could continue into fiscal 2028. Strong Data Center demand and upcoming Blackwell and Vera Rubin product ramps support earnings visibility. NVIDIA earnings and outlook
• Positive Sentiment: OpenAI’s GPT-6 Astra was reportedly trained on more than 100,000 NVIDIA Grace Blackwell systems, reinforcing NVIDIA’s role in frontier-model development and potentially supporting additional infrastructure demand. OpenAI GPT-6 Astra and NVIDIA
• Positive Sentiment: CEO Jensen Huang described NVIDIA’s computing systems as durable, rentable, revenue-generating assets. Reports that older H100 GPUs continue to command meaningful rental rates could ease concerns about rapid hardware obsolescence. NVIDIA chip rental demand
• Positive Sentiment: The proposed $12.9 billion acquisition of Hugging Face could expand NVIDIA’s software, developer and open-source AI ecosystem, strengthening its full-stack platform beyond hardware. NVIDIA Hugging Face acquisition
• Neutral Sentiment: Analysts and commentators continue to raise price targets and identify further upside from AI infrastructure expansion, but these views are largely expectations rather than new company guidance.
• Negative Sentiment: Investors remain concerned that hyperscalers may increasingly use custom accelerators from companies such as Broadcom, while older NVIDIA hardware could eventually compete with new products. Broadcom custom AI chip competition
• Negative Sentiment: Risks surrounding the Hugging Face deal include the possibility that developers or open-source contributors resist NVIDIA ownership, limiting the acquisition’s strategic value. Hugging Face acquisition risk
• Negative Sentiment: Large insider selling, supplier financing needs and growing opposition to AI data-center construction add caution around valuation, supply-chain sustainability and the pace of future infrastructure spending.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on NVDA. Susquehanna restated a “positive” rating and issued a $275.00 price objective (up from $250.00) on shares of NVIDIA in a report on Tuesday, May 12th. Jefferies Financial Group reaffirmed a “buy” rating on shares of NVIDIA in a research note on Wednesday, August 26th. Wall Street Zen raised shares of NVIDIA from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 29th. Melius Research set a $420.00 price objective on shares of NVIDIA in a report on Thursday, August 27th. Finally, Oppenheimer set a $315.00 price objective on shares of NVIDIA and gave the stock an “outperform” rating in a research report on Thursday, August 27th. Two investment analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $324.83.

NVIDIA Stock Performance

The stock has a market cap of $5.44 trillion, a PE ratio of 28.54, a PEG ratio of 1.81 and a beta of 2.22. 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 50 day moving average of $211.32 and a two-hundred day moving average of $202.51.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping the consensus estimate of $2.09 by $0.13. The firm had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. NVIDIA’s revenue for the quarter was up 105.9% compared to the same quarter last year. During the same period last year, the business earned $1.05 EPS. Research analysts predict that NVIDIA Corporation will post 9.1 EPS for the current fiscal year.

NVIDIA Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be given a dividend of $0.25 per share. The ex-dividend date is Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.4%. NVIDIA’s dividend payout ratio (DPR) is 12.64%.

NVIDIA declared that its Board of Directors has approved a share repurchase plan 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 purchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other news, EVP Timothy Teter sold 30,000 shares of the company’s stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $217.88, for a total value of $6,536,400.00. Following the completion of the sale, the executive vice president directly owned 2,687,660 shares of the company’s stock, valued at approximately $585,587,360.80. This represents a 1.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 885,000 shares of the business’s 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 owned 5,207,271 shares in the company, valued at $1,094,412,146.07. This trade represents a 14.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 1,563,501 shares of company stock worth $335,380,530. 3.94% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On NVIDIA

A number of institutional investors have recently added to or reduced their stakes in NVDA. Lifetime Wealth Management P.C. purchased a new stake in shares of NVIDIA in the fourth quarter valued at approximately $26,000. Longview Financial Advisors Inc. acquired a new position in NVIDIA during the first quarter worth $27,000. Montgomery Financial Services LLC purchased a new position in NVIDIA in the second quarter worth $28,000. Longfellow Investment Management Co. LLC lifted its holdings 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 acquiring an additional 67 shares during the period. Finally, Langley Wealth Management LLC acquired a new stake in NVIDIA in the second quarter valued at $34,000. Hedge funds and other institutional investors 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.