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

NVIDIA Corporation (NASDAQ:NVDA)’s share price was down 3.4% during trading on Monday . The company traded as low as $208.93 and last traded at $210.96. 130,578,030 shares were traded during mid-day trading, a decline of 17% from the average session volume of 157,415,375 shares. The stock had previously closed at $218.29.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Strong AI demand remains the core bullish factor. NVIDIA management reportedly expects approximately 70% revenue growth in fiscal 2028, with supply—not customer demand—still limiting sales. High GPU utilization at Oracle and continued infrastructure commitments from neocloud providers support the view that AI compute demand remains robust. Is It Too Late to Buy Nvidia Stock?
• Positive Sentiment: CUDA-Q Logical expands NVIDIA’s opportunity beyond conventional AI. The company launched an open-source orchestration layer for fault-tolerant quantum computing and partnered with Qedma on error mitigation. Fermilab reportedly reduced architecture-development time from five months to three weeks using the platform, although commercial benefits are longer term. NVIDIA Expands Open Source CUDA-Q Platform
• Positive Sentiment: Potential strategic investments could deepen NVIDIA’s ecosystem. Reports say NVIDIA is considering a roughly $10 billion investment in Anthropic, linking its chips to one of the leading AI-model developers. The company is also emphasizing optical networking and supply-chain partnerships to address emerging data-center bottlenecks. NVIDIA Prepares Investment in Anthropic
• Neutral Sentiment: NVIDIA’s capital-allocation profile remains notable. One report says NVIDIA is conducting record share repurchases while other hyperscalers have reduced buybacks because of heavy AI spending. That may support per-share earnings, but it also reflects the enormous capital requirements across the AI infrastructure industry. The End of Big Tech Buybacks
• Negative Sentiment: AI-pacing warnings triggered the immediate selling pressure. Executives associated with Anthropic, OpenAI and other AI companies have called for a slower or more carefully regulated approach to frontier-model development. Investors interpreted those comments as a possible threat to the pace of hyperscaler spending on NVIDIA accelerators. Nvidia Stock Amid AI Slowdown Fears
• Negative Sentiment: Margins and concentration remain risks. Rising memory costs are expected to pressure gross margins, while NVIDIA’s AI revenue is concentrated among a small number of large customers. Higher oil prices, an approaching Federal Reserve decision and broader concerns about expensive AI infrastructure added to the sector-wide risk-off tone. Nvidia and Other Chipmakers Suffer

Wall Street Analysts Forecast Growth

Several research firms recently commented on NVDA. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $400.00 price objective (up from $315.00) on shares of NVIDIA in a research report on Thursday, August 27th. Bank of America restated a “buy” rating and set a $350.00 target price (up from $320.00) on shares of NVIDIA in a research note on Thursday, May 21st. Stifel Nicolaus set a $315.00 price target on shares of NVIDIA in a report on Thursday, August 27th. Citigroup reiterated a “buy” rating and issued a $315.00 price target (up from $300.00) on shares of NVIDIA in a research note on Thursday, August 27th. Finally, KeyCorp reissued an “overweight” rating and set a $330.00 price objective on shares of NVIDIA in a report on Monday, August 24th. Three research analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Buy” and a consensus price target of $324.34.

NVIDIA Stock Down 3.4%

The firm has a market capitalization of $5.08 trillion, a P/E ratio of 26.67, a P/E/G ratio of 1.71 and a beta of 2.22. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The company’s 50-day simple moving average is $213.29 and its two-hundred day simple moving average is $203.41.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The business had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. During the same quarter in the previous year, the company posted $1.05 earnings per share. NVIDIA’s revenue for the quarter was up 105.9% on a year-over-year basis. As a group, research analysts expect that NVIDIA Corporation will post 9.12 earnings per share for the current year.

NVIDIA Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, September 10th. NVIDIA’s dividend payout ratio (DPR) is 12.64%.

NVIDIA declared that its board has approved a share buyback program 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 shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

Insider Buying and Selling

In other news, EVP Timothy Teter sold 30,000 shares of NVIDIA stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the sale, the executive vice president owned 2,687,660 shares in the company, valued at $585,587,360.80. This trade represents a 1.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of the company’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the transaction, the director owned 2,336,531 shares of the company’s stock, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 2,585,740 shares of company stock valued at $571,015,527. 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. Lifetime Wealth Management P.C. purchased a new stake in shares of NVIDIA during the 4th quarter worth approximately $26,000. Longview Financial Advisors Inc. purchased a new position in shares of NVIDIA in the first quarter valued at $27,000. Montgomery Financial Services LLC purchased a new position in shares of NVIDIA in the second quarter valued at $28,000. Langley Wealth Management LLC bought a new stake in NVIDIA in the second quarter worth $34,000. Finally, Phillip James Consulting Co. purchased a new stake in NVIDIA during the first quarter valued at $40,000. 65.27% of the stock is currently owned by hedge funds and other institutional investors.

About NVIDIA

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company’s offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.