NVIDIA (NASDAQ:NVDA) Trading Down 2.9% – Here’s What Happened

NVIDIA Corporation (NASDAQ:NVDA) dropped 2.9% during trading on Monday . The stock traded as low as $216.77 and last traded at $217.55. Approximately 113,623,289 shares changed hands during mid-day trading, a decline of 30% from the average session volume of 162,592,641 shares. The stock had previously closed at $223.96.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA is reportedly partnering with Apollo Global Management, Blackstone, BlackRock’s Global Infrastructure Partners, Brookfield, Goldman Sachs and KKR on an AI infrastructure financing initiative targeting as much as $500 billion. The effort could support demand for NVIDIA systems by helping fund new data centers. Nvidia teams up with Wall Street asset managers on $500 billion AI infrastructure push
• Positive Sentiment: Bank of America maintained a Buy rating and a $350 price target, forecasting fiscal second-quarter revenue of $94 billion to $95 billion—potentially $3 billion to $4 billion above NVIDIA’s guidance. BofA believes a strong report could begin a multi-quarter cycle of earnings-estimate upgrades. BofA: Nvidia’s next earnings report could kick off a multi-quarter upgrade cycle
• Positive Sentiment: Institutional and high-profile investors continue to signal confidence: ARK reportedly purchased 80,000 NVIDIA shares, while Brown Advisory also added to its position. Recent coverage highlights NVIDIA’s strong revenue growth, cash generation and expanding customer base. Cathie Wood Ignores AI Panic — Buys More Nvidia, Sells This Gaming Stock Instead
• Neutral Sentiment: NVIDIA is reportedly considering investing up to $3 billion in Lancium, an AI data-center power infrastructure company. The deal could strengthen NVIDIA’s ecosystem and address power constraints, but it also adds capital-allocation risk. Market Chatter: Nvidia to Invest Up to $3 Billion in Lancium
• Negative Sentiment: Investors are scrutinizing NVIDIA’s growing investments and financing activities, with some arguing that capital should instead be returned through buybacks. Mark Cuban compared the strategy with a dot-com-era company “funding everyone,” raising concerns about circular financing and AI-bubble risks. Nvidia Stock Slips as Its AI Investments Draw Fresh Scrutiny
• Negative Sentiment: Microsoft is reportedly reconsidering its reliance on NVIDIA by developing custom AI silicon, potentially lowering costs and reducing future demand from one of the chipmaker’s major customers. Microsoft Rethinks Its Nvidia Reliance

Analyst Ratings Changes

A number of brokerages recently issued reports on NVDA. KeyCorp reaffirmed an “overweight” rating and set a $330.00 target price (up from $310.00) on shares of NVIDIA in a research report on Tuesday, July 14th. Craig Hallum upped their price objective on shares of NVIDIA from $245.00 to $275.00 and gave the company a “buy” rating in a research report on Thursday, May 21st. Truist Financial boosted their price target on NVIDIA from $287.00 to $307.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Jefferies Financial Group reiterated a “buy” rating and issued a $300.00 price objective (up from $275.00) on shares of NVIDIA in a research report on Thursday, May 21st. Finally, William Blair restated an “outperform” rating on shares of NVIDIA in a research report on Tuesday, June 2nd. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, NVIDIA has a consensus rating of “Buy” and a consensus target price of $304.26.

NVIDIA Stock Performance

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 50 day moving average price of $205.66 and a two-hundred day moving average price of $197.27. The company has a market capitalization of $5.26 trillion, a P/E ratio of 33.32, a price-to-earnings-growth ratio of 0.44 and a beta of 2.23.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating the consensus estimate of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The business had revenue of $81.61 billion for the quarter, compared to analyst estimates of $78.42 billion. During the same quarter in the previous year, the firm earned $0.81 EPS. NVIDIA’s quarterly revenue was up 85.2% on a year-over-year basis. On average, research analysts expect that NVIDIA Corporation will post 8.79 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Thursday, June 4th were issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend was Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s payout ratio is currently 15.31%.

NVIDIA announced that its board has authorized a stock buyback program 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 buy up to 1.5% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s board believes its shares are undervalued.

Insider Buying and Selling

In other news, Director John Dabiri sold 625 shares of the firm’s stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the completion of the sale, the director owned 14,163 shares of the company’s stock, valued at approximately $3,030,882. This trade represents a 4.23% decrease in their ownership of the stock. The transaction was disclosed in a 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 Stephen C. Neal sold 15,500 shares of NVIDIA stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the transaction, the director owned 116,135 shares of the company’s stock, valued at $25,053,803.55. This trade represents a 11.77% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 1,901,125 shares of company stock worth $410,583,015 in the last quarter. 3.94% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On NVIDIA

Several institutional investors have recently bought and sold shares of the business. Lifetime Wealth Management P.C. bought a new position in NVIDIA in the 4th quarter valued at $26,000. Longview Financial Advisors Inc. acquired a new position in shares of NVIDIA during the first quarter valued at $27,000. Longfellow Investment Management Co. LLC lifted its stake in shares of NVIDIA by 47.9% during 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. Langley Wealth Management LLC bought a new position in NVIDIA in the second quarter valued at about $34,000. Finally, Phillip James Consulting Co. acquired a new stake in NVIDIA in the first quarter worth about $40,000. 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.