NVIDIA (NASDAQ:NVDA) Stock Price Down 1.6% – Here’s What Happened

NVIDIA Corporation (NASDAQ:NVDA) fell 1.6% during mid-day trading on Wednesday . The company traded as low as $209.23 and last traded at $209.66. 137,255,310 shares changed hands during trading, a decline of 13% from the average session volume of 158,291,813 shares. The stock had previously closed at $213.05.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Quarterly earnings beat expectations. NVIDIA reported adjusted earnings per share of $2.39, surpassing the $2.09 consensus estimate. Analysts had expected approximately $92 billion in quarterly revenue, slightly above the company’s $91 billion guidance midpoint. NVIDIA quarterly earnings
• Positive Sentiment: Analysts remain highly bullish on NVIDIA’s cash generation and growth. Bank of America analyst Vivek Arya said NVIDIA could generate roughly $1 billion in free cash flow every weekday by this time next year. Raymond James also raised its price target to $352 and maintained a strong-buy rating. BofA NVIDIA cash flow outlook
• Positive Sentiment: NVIDIA is expanding its AI ecosystem beyond GPUs. Its infrastructure, financing platform, Groq inference products, robotics computers, and $2 billion Synopsys investment could strengthen its software, networking, and full-stack competitive moat over time. NVIDIA AI infrastructure strategy
• Neutral Sentiment: Earnings expectations are exceptionally high. Prediction markets placed approximately a 97% probability on an earnings beat, while options traders priced in a potential 5.4% move. Consequently, even strong results may not lift the stock unless NVIDIA provides robust forward guidance, particularly for its Rubin platform and data-center demand. NVIDIA earnings options volatility
• Negative Sentiment: Custom AI chips are emerging as a long-term competitive risk. OpenAI’s Jalapeño ASIC reportedly delivers superior efficiency on certain inference workloads and reduces reliance on NVIDIA’s CUDA ecosystem. Microsoft’s planned Maia 300 chip adds to concerns that hyperscalers may shift more workloads to internally designed silicon, potentially pressuring NVIDIA’s margins and market share over several years. OpenAI Jalapeño chip
• Negative Sentiment: Investors are questioning NVIDIA’s AI financing and strategic investments. Critics argue that its large investments in OpenAI and SpaceX could amount to financing customers or potential rivals that purchase NVIDIA hardware, raising concerns about circular financing and the durability of reported demand. NVIDIA OpenAI investment concerns

Analysts Set New Price Targets

A number of equities analysts have weighed in on the stock. Needham & Company LLC reaffirmed a “buy” rating and set a $270.00 target price on shares of NVIDIA in a research note on Tuesday, June 2nd. Mizuho set a $300.00 price objective on shares of NVIDIA in a research report on Thursday, May 21st. Itau BBA Securities decreased their target price on shares of NVIDIA from $256.00 to $218.00 in a report on Wednesday, June 24th. Zacks Research downgraded shares of NVIDIA from a “strong-buy” rating to a “hold” rating in a research note on Friday, August 21st. Finally, JPMorgan Chase & Co. increased their price target on shares of NVIDIA from $265.00 to $280.00 and gave the company an “overweight” rating in a report on Thursday, May 21st. One analyst has rated the stock with a Strong Buy rating, fifty have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $308.46.

NVIDIA Trading Down 1.6%

The stock has a market capitalization of $5.07 trillion, a P/E ratio of 32.11, a price-to-earnings-growth ratio of 0.41 and a beta of 2.23. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. The company has a 50-day moving average price of $207.50 and a 200 day moving average price of $200.09.

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

Insider Buying and Selling

In other news, Director Stephen C. Neal sold 15,500 shares of the business’s 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 sale, the director owned 116,135 shares in the company, valued at approximately $25,053,803.55. The trade was a 11.77% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Mark A. Stevens sold 885,000 shares of the stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total value of $186,000,450.00. Following the transaction, the director directly owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,900,500 shares of company stock worth $410,449,265 over the last 90 days. Insiders own 3.94% of the company’s stock.

Institutional Investors Weigh In On NVIDIA

Hedge funds have recently made changes to their positions in the company. State Street Corp boosted its holdings in NVIDIA by 1.2% in the 4th quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker’s stock valued at $184,911,111,000 after purchasing an additional 11,451,386 shares during the period. Geode Capital Management LLC boosted its stake in NVIDIA by 0.6% in the fourth quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker’s stock valued at $109,446,217,000 after acquiring an additional 3,383,441 shares during the last quarter. Norges Bank purchased a new position in NVIDIA in the 4th quarter valued at approximately $62,244,133,000. Bank of America Corp DE raised its position in shares of NVIDIA by 2.2% in the second quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker’s stock worth $39,090,956,000 after buying an additional 4,165,875 shares in the last quarter. Finally, Legal & General Group Plc lifted its stake in NVIDIA by 1.5% during the third quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker’s stock worth $33,808,862,000 after purchasing an additional 2,609,560 shares during the last quarter. Institutional investors and hedge funds 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.