NVIDIA (NASDAQ:NVDA) Trading Down 4.2% – Here’s What Happened

NVIDIA Corporation (NASDAQ:NVDA)’s stock price fell 4.2% during trading on Friday . The company traded as low as $176.38 and last traded at $177.19. 306,219,776 shares traded hands during mid-day trading, an increase of 70% from the average session volume of 180,133,172 shares. The stock had previously closed at $184.89.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Record quarter and blowout guidance reinforce demand for AI compute — NVDA reported huge revenue and EPS beats and guided to ~77% YoY growth for the April quarter, supporting the long‑term AI infrastructure thesis. NVIDIA’s AI Boom Isn’t Slowing After Blowout Q4
• Positive Sentiment: OpenAI funding and strategic partnerships broaden NVDA’s addressable market — NVDA joined Amazon and others in the massive OpenAI funding round, strengthening partner ties and demand visibility for GPUs. OpenAI’s $110B funding draws investment from Amazon, Nvidia
• Positive Sentiment: Analysts are raising targets — multiple firms lifted price targets and reiterated outperform/buy ratings after the report, giving intermediate upside support. CICC raises NVIDIA price target
• Neutral Sentiment: Valuation picture has shifted — several notes argue forward P/E and PEG have compressed, improving the valuation case even after the rally; that supports medium‑term buyers but doesn’t erase near‑term sentiment risk. Revisiting Comparative Valuations In Light Of NVIDIA’s Earnings (Upgrade)
• Negative Sentiment: “Sell‑the‑news” and rotation pressure pushed shares down — coverage notes that despite the beat the market punished NVDA as expectations were already priced in; investors are rotating out of mega‑cap AI names. Wall Street Roundup: Nvidia Beats And Drops In Edgy Market
• Negative Sentiment: Competition and customer choices are being watched closely — reports highlight hyperscalers exploring alternatives/custom silicon (and AMD/other wins), raising fears growth could face margin/market‑share pressure over time. Nvidia wraps up tough week as investors focus on competition
• Negative Sentiment: Production and segment headwinds — Nvidia warns gaming GPU shortages may persist through year‑end and supply constraints/China export dynamics add execution risk that can temper near‑term upside. Nvidia expects gaming chips shortage to last until year-end

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the company. JPMorgan Chase & Co. raised their price target on NVIDIA from $250.00 to $265.00 and gave the company an “overweight” rating in a research report on Thursday. Wolfe Research increased their target price on NVIDIA from $250.00 to $275.00 and gave the company an “outperform” rating in a research note on Friday, January 30th. Deutsche Bank Aktiengesellschaft lifted their price target on NVIDIA from $180.00 to $215.00 and gave the stock a “hold” rating in a research report on Thursday, November 20th. Citigroup increased their price objective on NVIDIA from $270.00 to $300.00 and gave the company a “buy” rating in a research report on Thursday. Finally, Piper Sandler restated an “overweight” rating on shares of NVIDIA in a research note on Thursday. Four analysts have rated the stock with a Strong Buy rating, forty-seven have assigned a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, NVIDIA currently has an average rating of “Buy” and a consensus price target of $271.86.

NVIDIA Price Performance

The stock has a market cap of $4.31 trillion, a price-to-earnings ratio of 36.16, a price-to-earnings-growth ratio of 0.57 and a beta of 2.31. The company has a quick ratio of 3.71, a current ratio of 4.47 and a debt-to-equity ratio of 0.06. The company’s 50-day moving average is $186.51 and its 200-day moving average is $183.89.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data on Wednesday, February 25th. The computer hardware maker reported $1.62 earnings per share for the quarter, beating the consensus estimate of $1.54 by $0.08. The company had revenue of $68.13 billion for the quarter, compared to analyst estimates of $65.56 billion. NVIDIA had a return on equity of 110.96% and a net margin of 55.60%.The company’s revenue was up 73.2% compared to the same quarter last year. During the same period in the prior year, the company posted $0.89 EPS. Equities research analysts expect that NVIDIA Corporation will post 2.77 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Wednesday, March 11th will be issued a dividend of $0.01 per share. The ex-dividend date of this dividend is Wednesday, March 11th. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.0%. NVIDIA’s dividend payout ratio (DPR) is presently 0.99%.

Insider Activity

In other news, CFO Colette Kress sold 27,640 shares of the company’s stock in a transaction dated Wednesday, February 4th. The shares were sold at an average price of $175.72, for a total value of $4,856,900.80. Following the sale, the chief financial officer owned 846,772 shares of the company’s stock, valued at approximately $148,794,775.84. This represents a 3.16% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Harvey C. Jones sold 250,000 shares of NVIDIA stock in a transaction dated Monday, December 15th. The shares were sold at an average price of $177.33, for a total transaction of $44,332,500.00. Following the transaction, the director directly owned 6,933,280 shares of the company’s stock, valued at $1,229,478,542.40. This represents a 3.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,610,848 shares of company stock worth $291,619,375 over the last 90 days. 4.17% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of NVDA. Brighton Jones LLC lifted its position in shares of NVIDIA by 12.4% during the fourth quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker’s stock worth $43,631,000 after purchasing an additional 35,815 shares in the last quarter. Bank Pictet & Cie Europe AG lifted its holdings in NVIDIA by 1.0% during the 4th quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker’s stock worth $315,100,000 after buying an additional 22,929 shares in the last quarter. Highview Capital Management LLC DE boosted its position in NVIDIA by 6.7% in the 4th quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker’s stock valued at $7,842,000 after buying an additional 3,653 shares during the last quarter. Hudson Value Partners LLC increased its stake in shares of NVIDIA by 30.7% in the 4th quarter. Hudson Value Partners LLC now owns 50,658 shares of the computer hardware maker’s stock valued at $6,805,000 after buying an additional 11,900 shares during the period. Finally, Wealth Group Ltd. raised its position in shares of NVIDIA by 15.7% during the first quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker’s stock worth $715,000 after acquiring an additional 896 shares during the last quarter. 65.27% of the stock is owned by institutional investors and hedge funds.

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.