NVIDIA (NASDAQ:NVDA) Trading Down 5.5% – Here’s What Happened

NVIDIA Corporation (NASDAQ:NVDA)’s stock price dropped 5.5% during mid-day trading on Thursday . The company traded as low as $184.32 and last traded at $184.89. Approximately 357,572,255 shares traded hands during mid-day trading, an increase of 102% from the average daily volume of 176,840,078 shares. The stock had previously closed at $195.56.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Record quarter and aggressive guidance: NVDA topped estimates and guided to about $78B for the next quarter, reinforcing very strong AI demand and pushing many analysts to lift long?term forecasts. Nvidia’s forecast points to accelerating growth, as Vera Rubin starts hitting market
• Positive Sentiment: Wall Street is raising targets: Multiple firms raised price targets and reiterated buy/outperform views after the quarter, signaling continued analyst confidence in NVDA’s secular AI position. Analyst price target and rating updates
• Positive Sentiment: Strategic ecosystem wins — OpenAI round and partnerships: NVDA was named among corporate backers in a massive OpenAI funding round, which supports continued demand for Nvidia compute. OpenAI’s $110 billion funding round draws investment from Amazon, Nvidia, SoftBank
• Neutral Sentiment: China exposure remains uncertain: Nvidia has secured limited export licenses but says it has not yet generated meaningful China revenue, leaving a material market risk unresolved. Nvidia still hasn’t sold its U.S.-approved China AI chips — and it’s worried local AI rivals could take over
• Neutral Sentiment: Supply constraints in gaming GPUs: Management warned gaming?chip shortages may persist into year?end, a reminder that parts of the business face production/timing risks even as data center demand booms. Nvidia expects gaming chips shortage to last until year-end
• Negative Sentiment: “Sell?the?news” and sky?high expectations: Despite the beat, investors punished the stock because results had been largely priced in and the market is sensitive to any sign growth could decelerate; several outlets noted investors were “left wanting more.” Nvidia earnings showcase a harsh reality for AI stocks: Investors are getting harder and harder to please
• Negative Sentiment: Macro and market?wide forces: A hot Producer Price Index and rotation out of mega?cap tech pressured the Nasdaq and amplified NVDA’s pullback even though the company’s fundamentals remain strong. US Equity Indexes Fall This Week as Nvidia’s Blowout Quarterly Results Fail to Stem Broadening Market Leadership
• Negative Sentiment: Heightened competition and long?term risk debates: Coverage flagged growing competition (custom silicon from hyperscalers, AMD, Broadcom, Google) and investor concerns about sustainability of hyperscaler capex — these narratives amplify volatility around NVDA. Nvidia’s stock wrapping up tough week as Wall Street focuses more on competition than growth

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on NVDA shares. CICC Research increased their price target on NVIDIA from $228.00 to $240.60 and gave the stock an “outperform” rating in a research note on Friday. HSBC set a $310.00 price target on shares of NVIDIA in a research note on Tuesday. Bank of America boosted their target price on shares of NVIDIA from $275.00 to $300.00 and gave the company a “buy” rating in a report on Thursday. Needham & Company LLC restated a “buy” rating and issued a $240.00 target price on shares of NVIDIA in a research note on Thursday. Finally, JPMorgan Chase & Co. boosted their price objective on shares of NVIDIA from $250.00 to $265.00 and gave the company an “overweight” rating in a research note on Thursday. Four analysts have rated the stock with a Strong Buy rating, forty-seven have assigned a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, NVIDIA currently has an average rating of “Buy” and a consensus price target of $271.86.

NVIDIA Stock Performance

The company has a debt-to-equity ratio of 0.06, a current ratio of 4.47 and a quick ratio of 3.71. The stock has a market cap of $4.31 trillion, a P/E ratio of 36.16, a price-to-earnings-growth ratio of 0.54 and a beta of 2.31. The company has a 50 day simple moving average of $186.43 and a 200-day simple moving average of $183.86.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings results on Wednesday, February 25th. The computer hardware maker reported $1.62 EPS for the quarter, beating analysts’ consensus estimates of $1.54 by $0.08. The business had revenue of $68.13 billion for the quarter, compared to analysts’ expectations of $65.56 billion. NVIDIA had a net margin of 55.60% and a return on equity of 110.96%. The business’s quarterly revenue was up 73.2% on a year-over-year basis. During the same period last year, the business earned $0.89 earnings per share. On average, equities analysts expect that NVIDIA Corporation will post 2.77 earnings per share for the current fiscal year.

NVIDIA Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Wednesday, March 11th will be paid a $0.01 dividend. The ex-dividend date of this dividend is Wednesday, March 11th. This represents a $0.04 annualized dividend and a yield of 0.0%. NVIDIA’s payout ratio is currently 0.82%.

Insider Buying and Selling at NVIDIA

In other news, Director Mark A. Stevens sold 222,500 shares of the firm’s stock in a transaction dated Friday, December 19th. The stock was sold at an average price of $180.17, for a total transaction of $40,087,825.00. Following the transaction, the director directly owned 7,621,453 shares of the company’s stock, valued at approximately $1,373,157,187.01. This trade represents a 2.84% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Ajay K. Puri sold 200,000 shares of the business’s stock in a transaction dated Wednesday, January 21st. The shares were sold at an average price of $180.04, for a total value of $36,008,000.00. Following the completion of the sale, the executive vice president directly owned 3,618,547 shares of the company’s stock, valued at approximately $651,483,201.88. This trade represents a 5.24% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 1,610,848 shares of company stock valued at $291,619,375. Corporate insiders own 4.17% of the company’s stock.

Institutional Investors Weigh In On NVIDIA

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Harbor Asset Planning Inc. bought a new position in NVIDIA during the 2nd quarter valued at approximately $28,000. Winnow Wealth LLC bought a new stake in shares of NVIDIA in the 2nd quarter worth approximately $32,000. Longfellow Investment Management Co. LLC increased 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 buying an additional 67 shares during the period. Spurstone Advisory Services LLC bought a new position in shares of NVIDIA during the second quarter valued at approximately $40,000. Finally, Inspire Investing LLC bought a new stake in NVIDIA in the fourth quarter valued at $44,000. 65.27% of the stock is currently owned by institutional investors.

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.