NVIDIA (NASDAQ:NVDA) Trading Down 2.8% – Should You Sell?

NVIDIA Corporation (NASDAQ:NVDA) shares dropped 2.8% during mid-day trading on Tuesday . The stock traded as low as $176.23 and last traded at $180.34. Approximately 201,960,199 shares traded hands during mid-day trading, an increase of 21% from the average daily volume of 166,323,234 shares. The stock had previously closed at $185.61.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Nvidia-backed UK AI firm Nscale is preparing an IPO (Goldman/JPMorgan hired), which signals continued dealflow and ecosystem monetization for NVIDIA’s partner network. Nscale hires banks for IPO
• Positive Sentiment: New commercial partnerships and platform integrations (e.g., Dassault Systèmes) expand NVIDIA’s TAM beyond hyperscalers into industrial AI and virtual twins, supporting long-term demand for GPUs and software. Dassault Systèmes partnership
• Positive Sentiment: China export approvals and reported H200 chip orders have reopened a key revenue stream for NVDA, boosting the data-center growth narrative and near-term sales visibility. Quiver: H200 export boost & earnings commentary
• Neutral Sentiment: CEO Jensen Huang publicly pushed back on deal-controversy reports, saying the company’s plan to invest in OpenAI is “on track” and that NVIDIA would consider investing in OpenAI’s IPO — comments that curb downside but leave deal size/timing unclear. Huang denies controversy
• Negative Sentiment: Reports say Nvidia and OpenAI appear stalled on the previously announced mega-deal and OpenAI has explored rival chip suppliers; separate reporting says OpenAI is unsatisfied with some Nvidia chips — this creates near-term revenue uncertainty and strategic risk. CNBC: stalled deal Reuters: OpenAI unsatisfied with chips
• Negative Sentiment: Ongoing headlines about internal pushback on the $100B OpenAI investment, plus extensive insider selling activity shown in filings, have increased short-term investor jitters despite strong fundamentals. Fool: risks and insider context Quiver: insider transactions
• Neutral Sentiment: Competitive moves (Intel announcing new GPUs) are being watched by investors as a longer-term risk to margins and market share, but NVIDIA’s CUDA ecosystem and production lead still favor the near-term outlook. TechCrunch: Intel to make GPUs

Analyst Upgrades and Downgrades

A number of brokerages recently commented on NVDA. Morgan Stanley raised their price objective on shares of NVIDIA from $235.00 to $250.00 and gave the company an “overweight” rating in a research report on Monday, December 1st. Wedbush lifted their target price on shares of NVIDIA from $210.00 to $230.00 and gave the stock an “outperform” rating in a research report on Thursday, November 20th. Tigress Financial reissued a “strong-buy” rating and issued a $350.00 price target (up from $280.00) on shares of NVIDIA in a report on Thursday, December 18th. Needham & Company LLC reissued a “buy” rating and set a $240.00 price objective on shares of NVIDIA in a research note on Thursday, November 20th. Finally, Royal Bank Of Canada reiterated a “buy” rating on shares of NVIDIA in a research report on Thursday, January 15th. Four investment analysts have rated the stock with a Strong Buy rating, forty-seven have issued a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, NVIDIA currently has an average rating of “Buy” and an average target price of $263.98.

NVIDIA Stock Performance

The stock has a 50 day simple moving average of $184.15 and a 200 day simple moving average of $182.71. The company has a market cap of $4.38 trillion, a price-to-earnings ratio of 44.75, a PEG ratio of 0.93 and a beta of 2.31. The company has a quick ratio of 3.71, a current ratio of 4.47 and a debt-to-equity ratio of 0.06.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings data on Wednesday, November 19th. The computer hardware maker reported $1.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.23 by $0.07. The company had revenue of $57.01 billion during the quarter, compared to the consensus estimate of $54.66 billion. NVIDIA had a net margin of 53.01% and a return on equity of 99.24%. NVIDIA’s revenue for the quarter was up 62.5% on a year-over-year basis. During the same quarter last year, the company earned $0.81 earnings per share. As a group, analysts predict that NVIDIA Corporation will post 2.77 EPS for the current year.

NVIDIA Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, December 26th. Investors of record on Thursday, December 4th were paid a dividend of $0.01 per share. The ex-dividend date of this dividend was Thursday, December 4th. This represents a $0.04 annualized dividend and a yield of 0.0%. NVIDIA’s payout ratio is 0.99%.

Insider Buying and Selling

In related news, CFO Colette Kress sold 30,500 shares of the stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $178.11, for a total value of $5,432,355.00. Following the completion of the transaction, the chief financial officer owned 1,286,826 shares of the company’s stock, valued at approximately $229,196,578.86. This represents a 2.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Harvey C. Jones sold 250,000 shares of the firm’s stock in a transaction that occurred on Monday, December 15th. The shares were sold at an average price of $177.33, for a total value of $44,332,500.00. Following the sale, the director owned 6,933,280 shares of the company’s stock, valued at approximately $1,229,478,542.40. This trade represents a 3.48% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 1,563,834 shares of company stock worth $283,360,391 over the last quarter. Company insiders own 4.17% of the company’s stock.

Hedge Funds Weigh In On NVIDIA

Institutional investors and hedge funds have recently made changes to their positions in the business. Harbor Asset Planning Inc. bought a new stake in shares of NVIDIA in the 2nd quarter worth about $28,000. Winnow Wealth LLC acquired a new position in NVIDIA in the second quarter worth about $32,000. Longfellow Investment Management Co. LLC increased 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 buying an additional 67 shares during the last quarter. Spurstone Advisory Services LLC acquired a new stake in NVIDIA during the second quarter valued at approximately $40,000. Finally, Syntax Research Inc. lifted its holdings in NVIDIA by 62.5% during the 4th quarter. Syntax Research Inc. now owns 260 shares of the computer hardware maker’s stock worth $49,000 after buying an additional 100 shares during the last quarter. 65.27% of the stock is currently 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.