NVIDIA (NASDAQ:NVDA) Shares Down 2.4% – Should You Sell?

NVIDIA Corporation (NASDAQ:NVDA)’s share price traded down 2.4% during mid-day trading on Tuesday . The stock traded as low as $207.29 and last traded at $207.41. 123,713,808 shares were traded during mid-day trading, a decline of 28% from the average daily volume of 170,743,641 shares. The stock had previously closed at $212.45.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA was reported to have taken the No. 1 spot in data center Ethernet switching by revenue in Q1, highlighting that its reach is expanding beyond GPUs into networking hardware for AI data centers.
• Positive Sentiment: Several articles pointed to fresh growth catalysts outside the U.S., including NVIDIA’s push into Europe and broader international AI demand, which supports the bull case for continued revenue expansion.
• Positive Sentiment: New products and partnerships are reinforcing the stock’s AI leadership narrative, including NVIDIA’s XR AI toolkit and collaborations tied to next-generation AI infrastructure, which suggest the company is still deepening its technology moat.
• Positive Sentiment: The launch of the PurePlay NVIDIA Ecosystem Picks & Shovels ETF underscores how much of the market is still building investment products around NVIDIA’s AI buildout, a sign of strong institutional interest in the theme.
• Positive Sentiment: Supportive commentary from analysts, media, and well-known investors continued to frame NVIDIA as a core AI winner, helping offset recent worries about valuation and competition.
• Neutral Sentiment: At the same time, news that Amazon Web Services is exploring sales of its custom Trainium AI chips is a reminder that competition in AI accelerators is intensifying, although NVIDIA remains the dominant player for now.
• Neutral Sentiment: Reports about insider selling, short-seller warnings, and concerns about an AI funding squeeze have kept some pressure on sentiment, but they have not yet outweighed the positive operating and ecosystem headlines.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. DZ Bank reaffirmed a “buy” rating on shares of NVIDIA in a research report on Thursday, May 21st. Cantor Fitzgerald reiterated an “overweight” rating and issued a $350.00 price target on shares of NVIDIA in a report on Thursday, May 21st. Truist Financial increased their price objective on NVIDIA from $287.00 to $307.00 and gave the stock a “buy” rating in a research note on Thursday, May 21st. Citic Securities raised their price objective on NVIDIA from $242.00 to $315.00 and gave the stock a “buy” rating in a report on Friday, May 22nd. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of NVIDIA in a research report on Friday, April 10th. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus price target of $305.67.

NVIDIA Stock Up 3.0%

The business’s 50 day moving average is $208.68 and its 200 day moving average is $192.01. 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 company has a market cap of $5.10 trillion, a P/E ratio of 32.26, a P/E/G ratio of 0.46 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA) last announced its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (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 analysts’ expectations of $78.42 billion. During the same quarter last year, the firm earned $0.81 EPS. The business’s revenue for the quarter was up 85.2% on a year-over-year basis. As a group, equities analysts anticipate that NVIDIA Corporation will post 8.65 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Thursday, June 4th will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, June 4th. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA’s dividend payout ratio is 15.31%.

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

Insider Activity

In other news, Director John Dabiri sold 625 shares of the firm’s stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the sale, the director directly owned 14,163 shares in the company, valued at approximately $3,030,882. This trade represents a 4.23% decrease in their position. The transaction 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, CFO Colette Kress sold 42,650 shares of NVIDIA stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $174.89, for a total transaction of $7,459,058.50. Following the completion of the transaction, the chief financial officer directly owned 881,387 shares in the company, valued at approximately $154,145,772.43. The trade was a 4.62% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 1,300,457 shares of company stock valued at $274,041,153. Company insiders own 3.94% of the company’s stock.

Institutional Investors Weigh In On NVIDIA

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Diversified Enterprises LLC grew its stake in NVIDIA by 44.2% in the 4th quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker’s stock valued at $23,798,000 after acquiring an additional 39,129 shares during the period. PMG Family Office LLC acquired a new position in NVIDIA during the third quarter worth $2,150,000. ASR Vermogensbeheer N.V. raised its position in NVIDIA by 1.8% during the fourth quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker’s stock worth $591,086,000 after acquiring an additional 54,877 shares during the period. Weaver Capital Management LLC lifted its holdings in NVIDIA by 5.5% during the fourth quarter. Weaver Capital Management LLC now owns 85,216 shares of the computer hardware maker’s stock valued at $15,893,000 after purchasing an additional 4,439 shares in the last quarter. Finally, Circle Wealth Management LLC lifted its holdings in NVIDIA by 16.1% during the third quarter. Circle Wealth Management LLC now owns 107,787 shares of the computer hardware maker’s stock valued at $20,111,000 after purchasing an additional 14,936 shares in the last quarter. 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.