NVIDIA (NASDAQ:NVDA) Shares Down 2.9% – Here’s What Happened

NVIDIA Corporation (NASDAQ:NVDA) shares traded down 2.9% on Thursday. The company traded as low as $229.85 and last traded at $230.48. 114,270,318 shares were traded during trading, a decline of 25% from the average session volume of 152,876,109 shares. The stock had previously closed at $237.47.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: AI infrastructure demand remains robust. TSMC reported third-quarter revenue growth of 50%, while analysts cited continued hyperscaler spending and projected U.S. data-center capital expenditures of roughly $2 trillion next year—supportive of NVIDIA’s accelerator demand. NVIDIA AI spending outlook
• Positive Sentiment: SpaceX reportedly plans to raise as much as $40 billion to purchase NVIDIA AI chips, highlighting the scale of demand from emerging AI customers. NVIDIA also committed $1 billion over five years to U.S. scientific research in areas including quantum computing, healthcare and energy security. SpaceX NVIDIA chip purchase report
• Neutral Sentiment: Options activity is mixed: a large bullish trade suggests some investors expect further gains, but heavier put buying in the semiconductor ETF indicates increased hedging and caution across the chip sector. Technical analysts also see resistance near $235 and potential support around $215–$220. NVIDIA and semiconductor options activity
• Negative Sentiment: Investors remain concerned that AI spending may be debt-funded and approaching a peak. The withdrawal of NVIDIA-backed Firmus Grid’s proposed multibillion-dollar IPO, alongside reports that OpenAI’s annualized revenue was below earlier expectations, has raised questions about AI infrastructure valuations and customer funding. Firmus IPO withdrawal
• Negative Sentiment: Leadership and governance headlines add limited uncertainty: NVIDIA’s head of corporate communications left after roughly four months, while a legal challenge to the company’s Groq technology transaction could create additional execution and reputational risk. NVIDIA communications chief departure

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the company. Sanford C. Bernstein reissued a “buy” rating on shares of NVIDIA in a report on Monday, September 21st. Mizuho set a $315.00 price target on shares of NVIDIA and gave the company an “outperform” rating in a report on Thursday, August 27th. Jefferies Financial Group reissued a “buy” rating on shares of NVIDIA in a research note on Wednesday, August 26th. JPMorgan Chase & Co. raised their price target on NVIDIA from $280.00 to $320.00 and gave the stock an “overweight” rating in a research note on Thursday, August 27th. Finally, Wells Fargo & Company set a $210.00 target price on shares of NVIDIA in a research note on Friday, October 2nd. Five research analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, NVIDIA has a consensus rating of “Buy” and a consensus target price of $321.89.

NVIDIA Stock Down 0.5%

The stock has a market capitalization of $5.53 trillion, a PE ratio of 28.99, a price-to-earnings-growth ratio of 1.78 and a beta of 2.22. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. The company’s 50-day moving average is $222.66 and its 200 day moving average is $209.43.

NVIDIA (NASDAQ:NVDA) last released its 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 firm had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. During the same period in the prior year, the firm earned $1.05 EPS. The firm’s revenue was up 105.9% on a year-over-year basis. As a group, analysts anticipate that NVIDIA Corporation will post 9.25 EPS for the current year.

NVIDIA Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA’s dividend payout ratio (DPR) is 12.64%.

NVIDIA declared that its board has initiated a share repurchase plan on Monday, September 28th that allows the company to repurchase $150.00 billion in shares. This buyback authorization allows the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling at NVIDIA

In related news, Director Mark A. Stevens sold 622,239 shares of NVIDIA stock in a transaction that occurred 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 completion of the transaction, the director directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Timothy S. Teter sold 30,460 shares of the business’s stock in a transaction on Monday, September 21st. The shares were sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the completion of the transaction, the executive vice president owned 2,687,660 shares of the company’s stock, valued at approximately $598,810,648. This represents a 1.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 Trading of NVIDIA

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Integrated Financial Solutions Inc. raised its holdings in NVIDIA by 0.7% in the 3rd quarter. Integrated Financial Solutions Inc. now owns 175,705 shares of the computer hardware maker’s stock valued at $40,127,000 after acquiring an additional 1,301 shares during the last quarter. Sacks & Associates LLC purchased a new position in shares of NVIDIA during the 3rd quarter worth $3,328,000. Adirondack Capital Advisors LLC boosted its stake in NVIDIA by 15.9% during the third quarter. Adirondack Capital Advisors LLC now owns 2,152 shares of the computer hardware maker’s stock worth $491,000 after buying an additional 295 shares during the period. Roan Capital Partners increased its holdings in NVIDIA by 22.7% in the 3rd quarter. Roan Capital Partners now owns 1,378 shares of the computer hardware maker’s stock valued at $315,000 after purchasing an additional 255 shares during the last quarter. Finally, Armstrong Advisory Group Inc. grew its stake in shares of NVIDIA by 2.3% in the third quarter. Armstrong Advisory Group Inc. now owns 29,984 shares of the computer hardware maker’s stock valued at $6,848,000 after buying an additional 663 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 is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.