NVIDIA (NASDAQ:NVDA) Stock Price Down 3.4% – Here’s Why

NVIDIA Corporation (NASDAQ:NVDA) fell 3.4% on Monday . The stock traded as low as $203.00 and last traded at $203.6910. Approximately 120,348,642 shares changed hands during mid-day trading, a decline of 28% from the average daily volume of 167,839,828 shares. The stock had previously closed at $210.96.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Several articles highlighted continued bullish analyst sentiment, with Wall Street still pointing to major upside for NVIDIA thanks to strong AI demand, expanding earnings power, and attractive valuation relative to its growth. Article Title
• Positive Sentiment: Coverage also emphasized that NVIDIA’s competitive moat in AI chips remains strong, with commentary saying new AI infrastructure spending from major customers still supports demand for its GPUs and full-stack platform. Article Title
• Positive Sentiment: Multiple pieces pointed to NVIDIA’s latest financial strength, including explosive revenue and earnings growth, reinforcing the view that fundamentals are still improving even after a big multi-year run. Article Title
• Neutral Sentiment: Some reports framed the pullback as part of a broader semiconductor and Nasdaq weakness, with futures down and investors rotating out of richly valued tech names rather than reacting to a company-specific problem. Article Title
• Neutral Sentiment: There were also mixed competitive headlines: Google is expanding TPU sales and Broadcom/Marvell are being discussed as possible challengers, which may be capping enthusiasm, but these stories still describe NVIDIA as the market leader. Article Title
• Negative Sentiment: Investor concern is being fueled by talk of a possible AI spending slowdown, valuation reset, and signs that the market is questioning whether the pace of AI capex can keep supporting the whole trade. Article Title
• Negative Sentiment: Additional pressure came from stories about rising competition in AI infrastructure and memory supply constraints, including SK Hynix weakness and concerns that NVIDIA’s supply chain or product timing could create near-term volatility. Article Title

Wall Street Analysts Forecast Growth

NVDA has been the subject of a number of recent research reports. Citigroup assumed coverage on NVIDIA in a research note on Wednesday, April 15th. They issued a “buy” rating for the company. Melius Research set a $400.00 target price on shares of NVIDIA in a research report on Thursday, May 21st. Barclays reiterated an “overweight” rating on shares of NVIDIA in a report on Thursday, May 21st. Morgan Stanley set a $288.00 price objective on NVIDIA and gave the stock an “overweight” rating in a research note on Thursday, May 21st. Finally, Tigress Financial reaffirmed a “strong-buy” rating and issued a $425.00 price objective (up from $360.00) on shares of NVIDIA in a report on Wednesday, May 27th. Three 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’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and an average price target of $303.84.

NVIDIA Trading Down 3.4%

The firm’s fifty day moving average price is $209.48 and its 200-day moving average price is $194.49. The company has a market cap of $4.93 trillion, a price-to-earnings ratio of 31.19, a P/E/G ratio of 0.46 and a beta of 2.21. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, beating the consensus estimate of $1.76 by $0.11. The firm had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. NVIDIA’s quarterly revenue was up 85.2% compared to the same quarter last year. During the same period last year, the firm posted $0.81 EPS. On average, equities analysts expect that NVIDIA Corporation will post 8.8 EPS for the current fiscal year.

NVIDIA Increases Dividend

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

NVIDIA announced that its board has approved a stock repurchase plan on Wednesday, May 20th that allows the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

Insider Activity

In other news, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction that occurred 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 transaction, the director owned 5,207,271 shares of the company’s stock, valued at $1,094,412,146.07. The trade was a 14.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Stephen C. Neal sold 15,500 shares of the business’s stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total value of $3,343,815.00. Following the sale, the director directly owned 116,135 shares in the company, valued at $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 1,901,125 shares of company stock valued at $410,583,015. 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 added to or reduced their stakes in the stock. Diversified Enterprises LLC raised its holdings in shares of NVIDIA by 44.2% in the 4th quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker’s stock worth $23,798,000 after purchasing an additional 39,129 shares during the period. ASR Vermogensbeheer N.V. lifted its holdings in NVIDIA by 1.8% during the 4th quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker’s stock worth $591,086,000 after purchasing an additional 54,877 shares in the last quarter. PMG Family Office LLC bought a new position in shares of NVIDIA in the third quarter valued at approximately $2,150,000. Storen Legacy Partners LLC bought a new position in NVIDIA in the 4th quarter valued at $1,350,000. Finally, Weaver Capital Management LLC boosted its stake 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 buying an additional 4,439 shares during the period. Hedge funds and other 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.