NVIDIA (NASDAQ:NVDA) Shares Down 1.4% – Here’s What Happened

Shares of NVIDIA Corporation (NASDAQ:NVDA) fell 1.4% during trading on Thursday . The company traded as low as $192.35 and last traded at $194.83. Approximately 139,557,238 shares changed hands during mid-day trading, a decline of 18% from the average daily volume of 169,795,688 shares. The stock had previously closed at $197.58.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA unveiled a new revenue-sharing model that lets AI startups trade compute access for a share of future profits, a move that could expand its customer base and make its ecosystem stickier. Nvidia offers start-up customers chance to swap compute power for revenue share
• Positive Sentiment: Analysts and commentators continue to highlight Nvidia as a top AI and semiconductor name, with several articles arguing the recent pullback is a buying opportunity and that the stock could recover meaningfully over the next 12 months. Price Prediction: Nvidia Could Hit $250 in 12 Months Despite AI Selloff
• Positive Sentiment: Multiple reports pointed to new AI/robotics opportunities tied to NVIDIA, including the Palantir sovereign AI partnership, the Agility Robotics launch partnership, and Valar Atomics’ reactor-powered Nvidia chip demo, reinforcing Nvidia’s central role in AI infrastructure. Valar nuclear startup partners with Nvidia on data center aiming to conserve water
• Neutral Sentiment: Nvidia also named Nicholas Parker to lead field operations, an internal leadership move that appears operational rather than a major financial catalyst. Nvidia names Nicholas Parker to lead field operations
• Negative Sentiment: Several pieces said NVDA remains under pressure from semiconductor profit-taking, a broader AI selloff, and concerns that valuations have gotten ahead of fundamentals, with technical traders warning of further downside if support breaks near the $200 area. Nvidia stock continues decline: what’s hurting the AI darling?
• Negative Sentiment: Hedge-fund sentiment also looked like a headwind, with Michael Burry disclosed as betting against Nvidia and other chip stocks, adding to the market’s caution around AI-chip names. Big Short investor Michael Burry reveals fresh bets against Tesla, Nvidia, and Caterpillar

Wall Street Analyst Weigh In

NVDA has been the topic of several recent research reports. Jefferies Financial Group reissued a “buy” rating and issued a $300.00 price target (up from $275.00) on shares of NVIDIA in a report on Thursday, May 21st. Seaport Research Partners increased their target price on NVIDIA from $140.00 to $180.00 and gave the stock a “sell” rating in a research report on Thursday, May 21st. BTIG Research initiated coverage on NVIDIA in a research note on Wednesday, April 15th. They issued a “buy” rating on the stock. CICC Research boosted their price target on shares of NVIDIA from $240.60 to $268.30 and gave the company an “outperform” rating in a report on Friday, May 22nd. Finally, Robert W. Baird set a $500.00 price target on shares of NVIDIA and gave the stock an “outperform” rating in a research report on Thursday, May 21st. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Buy” and a consensus price target of $303.84.

NVIDIA Stock Performance

The company has a market cap of $4.71 trillion, a P/E ratio of 29.84, a PEG ratio of 0.44 and a beta of 2.21. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. The company has a 50 day moving average price of $210.48 and a 200-day moving average price of $193.36.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. The business had revenue of $81.61 billion for the quarter, compared to analysts’ expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company’s revenue was up 85.2% on a year-over-year basis. During the same period in the previous year, the business earned $0.81 earnings per share. Equities analysts expect that NVIDIA Corporation will post 8.69 EPS for the current fiscal year.

NVIDIA Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were paid a dividend of $0.25 per share. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend was Thursday, June 4th. NVIDIA’s dividend payout ratio (DPR) is currently 15.31%.

NVIDIA announced that its Board of Directors has approved a share repurchase plan on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in shares. This buyback authorization authorizes the computer hardware maker to reacquire up to 1.5% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling

In other NVIDIA news, Director Mark A. Stevens sold 885,000 shares of the firm’s stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the completion of the sale, the director directly owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director John Dabiri sold 625 shares of NVIDIA stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the transaction, the director directly owned 14,163 shares in the company, valued at approximately $3,030,882. This trade represents a 4.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 1,901,125 shares of company stock valued at $410,583,015. 3.94% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On NVIDIA

Several institutional investors and hedge funds have recently modified their holdings of NVDA. Diversified Enterprises LLC raised its holdings in shares of NVIDIA by 44.2% in the fourth quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker’s stock valued at $23,798,000 after buying an additional 39,129 shares during the last quarter. ASR Vermogensbeheer N.V. raised its stake in shares of NVIDIA by 1.8% in the fourth quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker’s stock worth $591,086,000 after acquiring an additional 54,877 shares during the last quarter. PMG Family Office LLC acquired a new position in shares of NVIDIA during the third quarter worth approximately $2,150,000. Storen Legacy Partners LLC bought a new stake in shares of NVIDIA during the fourth quarter valued at approximately $1,350,000. Finally, Weaver Capital Management LLC increased its holdings in shares of NVIDIA by 5.5% in the fourth quarter. Weaver Capital Management LLC now owns 85,216 shares of the computer hardware maker’s stock valued at $15,893,000 after purchasing an additional 4,439 shares in the last quarter. 65.27% of the stock is currently owned by hedge funds and other institutional investors.

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.