NVIDIA (NASDAQ:NVDA) Shares Down 1.6% After Analyst Downgrade

Shares of NVIDIA Corporation (NASDAQ:NVDA) dropped 1.6% on Thursday after Itau BBA Securities lowered their price target on the stock from $256.00 to $218.00. The stock traded as low as $192.13 and last traded at $195.74. Approximately 148,267,388 shares were traded during mid-day trading, a decline of 13% from the average daily volume of 170,385,109 shares. The stock had previously closed at $199.00.

A number of other research firms have also weighed in on NVDA. Craig Hallum lifted their price objective on shares of NVIDIA from $245.00 to $275.00 and gave the company a “buy” rating in a research report on Thursday, May 21st. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and set a $255.00 target price (up from $220.00) on shares of NVIDIA in a research report on Thursday, May 21st. Robert W. Baird set a $500.00 target price on shares of NVIDIA and gave the stock an “outperform” rating in a research report on Thursday, May 21st. Zacks Research lowered shares of NVIDIA from a “strong-buy” rating to a “hold” rating in a research report on Thursday, May 21st. Finally, Citic Securities lifted their price objective on NVIDIA from $242.00 to $315.00 and gave the stock a “buy” rating in a research report on Friday, May 22nd. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, NVIDIA currently has a consensus rating of “Buy” and an average target price of $303.84.

Insider Buying and Selling at NVIDIA

In other NVIDIA news, Director Stephen C. Neal sold 15,500 shares of the business’s stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the transaction, the director owned 116,135 shares in the company, valued at $25,053,803.55. The trade was a 11.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Mark A. Stevens sold 885,000 shares of the stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the sale, the director owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,901,125 shares of company stock valued at $410,583,015 over the last ninety days. Corporate insiders own 3.94% of the company’s stock.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Micron’s blowout results are helping renew enthusiasm for AI infrastructure spending, which supports demand for NVIDIA’s GPUs and data-center ecosystem. Several articles frame the memory boom as evidence that AI capex remains strong.
• Positive Sentiment: Analyst commentary remains broadly bullish, with multiple firms maintaining Buy/Overweight ratings and price targets well above current levels, citing NVIDIA’s revenue growth, strong margins, and continued hyperscaler demand.
• Positive Sentiment: Fundamental updates remain strong: NVIDIA recently beat earnings expectations, raised its dividend, and authorized a large buyback, all of which reinforce confidence in cash generation and management’s view that shares are undervalued.
• Neutral Sentiment: Articles also continue to highlight NVIDIA’s long-term dominance in AI, including claims of a potential $1 trillion AI infrastructure opportunity by 2027 and expansion into networking, robotics, and software tools like BioNeMo.
• Negative Sentiment: The stock is being dragged by sector-wide concerns that AI spending may be cooling, with reports of slower HBM expansion at SK Hynix and broader worries about debt-funded AI capex hitting chip stocks across the group.
• Negative Sentiment: There is also some near-term headline risk from insider selling and legal news, including a major share sale by director Mark Stevens and a lawsuit involving AI training data, which may add to investor caution.

Institutional Trading of NVIDIA

Hedge funds and other institutional investors have recently bought and sold shares of the company. State Street Corp increased its stake in NVIDIA by 1.2% during the 4th quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker’s stock valued at $184,911,111,000 after buying an additional 11,451,386 shares during the period. Geode Capital Management LLC lifted its position in shares of NVIDIA by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker’s stock valued at $109,446,217,000 after acquiring an additional 3,383,441 shares during the last quarter. Norges Bank purchased a new stake in shares of NVIDIA during the fourth quarter valued at $62,244,133,000. Bank of America Corp DE lifted its stake in NVIDIA by 2.1% during the first quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker’s stock valued at $33,345,453,000 after buying an additional 4,019,505 shares in the last quarter. Finally, Legal & General Group Plc boosted its stake in NVIDIA by 1.5% in the 3rd quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker’s stock worth $33,808,862,000 after purchasing an additional 2,609,560 shares during the period. 65.27% of the stock is owned by institutional investors.

NVIDIA Trading Down 1.6%

The firm has a market cap of $4.74 trillion, a price-to-earnings ratio of 29.98, a PEG ratio of 0.45 and a beta of 2.22. 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 $210.80 and a 200 day moving average price of $192.91.

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

NVIDIA Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. The ex-dividend date is Thursday, June 4th. NVIDIA’s dividend payout ratio is presently 15.31%.

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

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.