NVIDIA (NASDAQ:NVDA) Stock Price Down 9.3% – Should You Sell?

NVIDIA Corporation (NASDAQ:NVDA) shares fell 9.3% during trading on Thursday. The company traded as low as $181.46 and last traded at $181.60. 300,814,832 shares were traded during trading, an increase of 102% from the average session volume of 148,900,359 shares. The stock had previously closed at $200.13.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Box expanded its partnership with NVIDIA, incorporating NVIDIA’s Nemotron technology into new AI search and workflow tools. The deal provides another example of NVIDIA’s technology being adopted in enterprise products. Reuters: Box expands Nvidia partnership
• Neutral Sentiment: Chinese AI startup Moonshot is reportedly exploring access to NVIDIA Blackwell chips through European data centers, underscoring overseas demand. However, the effort also highlights export-control and geopolitical risks. CNBC: Moonshot seeks Nvidia chip access in Europe
• Negative Sentiment: Investors are concerned that political shifts could lead to restrictions, delays, or higher costs for data-center projects. UBS estimates that a significant portion of planned U.S. capacity for 2028 could be delayed if construction pauses spread, threatening a key source of AI-chip demand. The Motley Fool: AI selloff and data-center concerns
• Negative Sentiment: The decline is also part of a wider selloff in technology and AI stocks, with fears about infrastructure spending and financing weighing on chipmakers. NVIDIA’s shares have also broken below a widely watched 200-day moving average, which may add to near-term selling pressure. Invezz: AI spending fears and financing risks
• Negative Sentiment: Expectations remain demanding ahead of NVIDIA’s November 17 results: even strong growth may not be enough to lift the stock if investors expect the company to exceed its already ambitious outlook. The Motley Fool: Nvidia’s upcoming earnings

Analyst Upgrades and Downgrades

Several research firms have recently commented on NVDA. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $350.00 price objective on shares of NVIDIA in a report on Thursday, October 1st. Stifel Nicolaus set a $315.00 target price on shares of NVIDIA in a report on Thursday, August 27th. Evercore set a $465.00 target price on shares of NVIDIA and gave the company an “outperform” rating in a research report on Thursday, August 27th. KeyCorp reaffirmed an “overweight” rating and issued a $330.00 price target on shares of NVIDIA in a report on Monday, August 24th. Finally, TD Cowen reaffirmed a “buy” rating on shares of NVIDIA in a research report on Tuesday, August 18th. Five equities research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Buy” and a consensus price target of $318.85.

NVIDIA Stock Performance

The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The firm has a fifty day moving average of $221.19 and a 200-day moving average of $204.51. The stock has a market capitalization of $4.38 trillion, a price-to-earnings ratio of 22.96, a PEG ratio of 1.59 and a beta of 2.21.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. The firm had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The firm’s revenue was up 105.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.05 EPS. As a group, sell-side analysts anticipate that NVIDIA Corporation will post 9.30 EPS for the current year.

NVIDIA Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Thursday, September 10th. NVIDIA’s payout ratio is currently 12.64%.

NVIDIA declared that its Board of Directors has initiated a stock buyback program on Monday, September 28th that authorizes the company to buy back $150 billion in shares. This buyback authorization authorizes the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Share buyback programs are typically a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling at NVIDIA

In other news, Director Mark A. Stevens sold 622,239 shares of the business’s stock in a transaction on Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the completion of the sale, the director owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. The trade was a 21.03% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Colette Kress sold 34,918 shares of NVIDIA stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total value of $7,648,787.90. Following the sale, the chief financial officer directly owned 765,103 shares in the company, valued at $167,595,812.15. This trade represents a 4.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 1,766,118 shares of company stock worth $399,450,353. Insiders own 3.94% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. State Street Corp lifted its holdings in shares of NVIDIA by 1.6% in the 2nd quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker’s stock valued at $202,047,568,000 after buying an additional 15,897,836 shares during the period. Bank of America Corp DE boosted its stake 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 valued at $39,090,956,000 after buying an additional 4,165,875 shares in the last quarter. Amundi grew its holdings in NVIDIA by 10.4% during the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after acquiring an additional 12,575,177 shares during the period. Dimensional Fund Advisors LP grew its holdings in NVIDIA by 0.6% during the first quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker’s stock worth $16,479,126,000 after acquiring an additional 555,221 shares during the period. Finally, Deutsche Bank AG grew its holdings in NVIDIA by 2.3% during the second quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker’s stock worth $18,399,108,000 after acquiring an additional 2,045,101 shares during the period. Hedge funds and other institutional investors own 65.27% of the company’s stock.

About NVIDIA

NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.

The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.