NVIDIA (NASDAQ:NVDA) Stock Price Down 2.4% – Here’s What Happened

NVIDIA Corporation (NASDAQ:NVDA)’s stock price fell 2.4% during trading on Tuesday . The stock traded as low as $207.29 and last traded at $207.41. 123,713,808 shares changed hands during trading, a decline of 28% from the average session volume of 170,743,641 shares. The stock had previously closed at $212.45.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Multiple reports highlight continued strength in NVIDIA’s AI infrastructure business, including commentary that data center revenue is surging and that demand for “AI factories” remains strong. Investors are also reacting to bullish calls comparing new AI companies to NVIDIA’s early breakout years, reinforcing the market’s view that NVDA remains the core AI leader. Article Title
• Positive Sentiment: NVIDIA also announced broad ecosystem momentum, including HPE’s new agentic AI production offerings built with NVIDIA, which supports the company’s role at the center of enterprise AI deployment. Article Title
• Positive Sentiment: Analyst coverage remains constructive, with one report citing a median price target well above the current share price and arguing that growing AI demand still leaves room for upside in NVIDIA stock. Article Title
• Neutral Sentiment: NVIDIA is tapping the debt market for the first time in years with a large bond sale, which gives it extra financial flexibility to fund AI-chip production and infrastructure needs, but also signals the scale of capital required to keep up with demand. Article Title
• Neutral Sentiment: Several articles note NVIDIA’s enormous market cap and continued investor attention, including comparisons to other AI leaders and broader semiconductor strength, but these are mostly sentiment-driven rather than company-specific fundamentals. Article Title
• Negative Sentiment: Some commentary warns that AI investing is getting crowded and more speculative, and that major customers and competitors are exploring custom chips or alternative infrastructure, which could pressure NVIDIA’s long-term margin and share gains. Article Title

Analyst Upgrades and Downgrades

NVDA has been the topic of a number of research analyst reports. JPMorgan Chase & Co. upped their target price on shares of NVIDIA from $265.00 to $280.00 and gave the company an “overweight” rating in a report on Thursday, May 21st. DZ Bank reissued a “buy” rating on shares of NVIDIA in a report on Thursday, May 21st. New Street Research lowered their price target on shares of NVIDIA from $343.00 to $340.00 in a report on Thursday, May 21st. Zacks Research cut shares of NVIDIA from a “strong-buy” rating to a “hold” rating in a report on Thursday, May 21st. Finally, Daiwa Securities Group increased their price target on shares of NVIDIA from $215.00 to $255.00 and gave the company an “outperform” rating in a report on Friday, May 22nd. Three analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Buy” and an average target price of $305.67.

NVIDIA Stock Performance

The stock’s 50-day simple moving average is $207.54 and its 200-day simple moving average is $191.65. The stock has a market cap of $5.02 trillion, a price-to-earnings ratio of 31.76, a price-to-earnings-growth ratio of 0.46 and a beta of 2.22. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.76 by $0.11. The business had revenue of $81.62 billion for the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm’s revenue for the quarter was up 85.2% on a year-over-year basis. During the same quarter last year, the business posted $0.81 EPS. Analysts forecast that NVIDIA Corporation will post 8.65 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

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

NVIDIA declared that its board has initiated a stock buyback plan on Wednesday, May 20th that allows the company to buyback $80.00 billion in shares. This buyback authorization allows the computer hardware maker to reacquire up to 1.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its shares are undervalued.

Insider Activity

In other news, Director Aarti S. Shah sold 19,000 shares of NVIDIA stock in a transaction dated Thursday, March 19th. The shares were sold at an average price of $176.71, for a total transaction of $3,357,490.00. Following the completion of the transaction, the director directly owned 36,007 shares in the company, valued at $6,362,796.97. This trade represents a 34.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Colette Kress sold 42,650 shares of the firm’s stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $174.89, for a total transaction of $7,459,058.50. Following the transaction, the chief financial officer directly owned 881,387 shares in the company, valued at $154,145,772.43. The trade was a 4.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 1,619,457 shares of company stock valued at $332,073,643. 3.94% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NVIDIA

Several hedge funds have recently bought and sold shares of NVDA. Lifetime Wealth Management P.C. bought a new stake in NVIDIA during the 4th quarter valued at $26,000. Longview Financial Advisors Inc. bought a new position in NVIDIA in the 1st quarter worth $27,000. Longfellow Investment Management Co. LLC raised its holdings in NVIDIA by 47.9% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after purchasing an additional 67 shares in the last quarter. Phillip James Consulting Co. bought a new position in NVIDIA in the 1st quarter worth $40,000. Finally, Spurstone Advisory Services LLC bought a new position in NVIDIA in the 2nd quarter worth $40,000. Hedge funds and other institutional investors 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.