NVIDIA (NASDAQ:NVDA) Trading Down 4.6% – Time to Sell?

NVIDIA Corporation (NASDAQ:NVDA)’s stock price traded down 4.6% during mid-day trading on Friday . The stock traded as low as $216.81 and last traded at $217.55. Approximately 193,499,131 shares traded hands during trading, an increase of 21% from the average daily volume of 159,716,031 shares. The stock had previously closed at $227.98.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s fiscal Q2 results exceeded expectations, with revenue of $96.2 billion, up 106% year over year, and Data Center revenue of $89 billion, up 117%. Adjusted EPS was $2.22 versus the $2.09 consensus. NVIDIA fiscal second-quarter results
• Positive Sentiment: Management forecast approximately $108 billion in fiscal Q3 revenue and about 70% revenue growth for fiscal 2028, well above Wall Street’s prior expectations near 45%. The outlook suggests AI infrastructure demand remains supply-constrained rather than demand-constrained. NVIDIA longer AI spending runway
• Positive Sentiment: Analysts raised price targets following the results, including Wedbush to $345, Truist to $346, and JPMorgan to $320, reinforcing the bullish view on Blackwell, the Vera Rubin ramp and long-term AI spending.
• Positive Sentiment: NVIDIA reportedly agreed to acquire open-source AI platform Hugging Face for approximately $12.9 billion. The deal could expand NVIDIA beyond chips into models, developer tools and cloud capacity, potentially strengthening demand for its hardware, although the transaction has not been fully confirmed. NVIDIA Hugging Face acquisition report
• Neutral Sentiment: NVIDIA expanded its AWS relationship to deliver an additional 2 million GPUs, while also pursuing large financing and infrastructure partnerships. These initiatives could broaden future revenue, but increase exposure to customer financing and project execution.
• Negative Sentiment: Fiscal Q3 gross-margin guidance of 74% is below the 75% achieved in Q2, reflecting higher memory, packaging and infrastructure costs. Operating expenses are also rising rapidly.
• Negative Sentiment: The outlook assumes no Data Center compute revenue from China, highlighting export-control and market-access risks. NVIDIA is simultaneously optimizing products for Chinese open models, which could invite additional regulatory scrutiny. NVIDIA Chinese AI models report
• Negative Sentiment: Reports that NVIDIA paused some revenue-sharing deals with AI cloud companies have revived concerns about circular financing and customer credit risk. Investors are also locking in gains after the sharp earnings-driven advance.
• Negative Sentiment: A hawkish Federal Reserve message at Jackson Hole increased concerns that interest rates may remain higher for longer, pressuring richly valued, high-beta technology stocks.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on NVDA shares. Benchmark reissued a “buy” rating and set a $335.00 price objective on shares of NVIDIA in a report on Thursday. Stifel Nicolaus set a $315.00 target price on NVIDIA in a research report on Thursday. Morgan Stanley set a $300.00 price target on NVIDIA and gave the company an “overweight” rating in a research note on Thursday. Argus boosted their price target on NVIDIA from $220.00 to $270.00 and gave the stock a “buy” rating in a report on Thursday, May 21st. Finally, Truist Financial upped their price objective on NVIDIA from $307.00 to $346.00 and gave the company a “buy” rating in a research note on Thursday. Two equities research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $322.61.

NVIDIA Price Performance

The firm has a market cap of $5.26 trillion, a P/E ratio of 27.50, a P/E/G ratio of 0.41 and a beta of 2.23. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. The business’s 50 day moving average is $207.95 and its two-hundred day moving average is $200.66.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 107.00% and a net margin of 63.66%.The firm had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. During the same period last year, the business posted $1.05 EPS. The business’s revenue was up 105.9% compared to the same quarter last year. As a group, analysts anticipate that NVIDIA Corporation will post 8.8 earnings per share for the current year.

NVIDIA Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Thursday, September 10th. NVIDIA’s payout ratio is presently 15.31%.

NVIDIA declared that its board has initiated a share buyback plan on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to buy up to 1.5% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling at NVIDIA

In other NVIDIA news, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction on 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 sale, the director directly owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Stephen C. Neal sold 15,500 shares of the company’s stock in a transaction dated 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 transaction, the director owned 116,135 shares in the company, valued at $25,053,803.55. This represents a 11.77% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 1,900,500 shares of company stock worth $410,449,265. 3.94% of the stock is owned by insiders.

Institutional Investors Weigh In On NVIDIA

Hedge funds and other institutional investors have recently modified their holdings of the company. Norges Bank bought a new stake in shares of NVIDIA during the fourth quarter worth about $62,244,133,000. J. Stern & Co. LLP lifted its position in NVIDIA by 13,709.1% in the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock valued at $23,454,297,000 after acquiring an additional 124,849,603 shares in the last quarter. Jupiter Topco LLC acquired a new position in NVIDIA during the 2nd quarter valued at about $16,156,076,000. Cardano Risk Management B.V. increased its holdings in NVIDIA by 896.4% during the 4th quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker’s stock worth $14,570,119,000 after purchasing an additional 70,283,539 shares in the last quarter. Finally, Capital Research Global Investors raised its stake in shares of NVIDIA by 16.1% in the third quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker’s stock worth $30,855,564,000 after purchasing an additional 22,896,705 shares during the last quarter. Institutional investors own 65.27% of the company’s stock.

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.