NVIDIA (NASDAQ:NVDA) Shares Down 1.2% – Here’s Why

Shares of NVIDIA Corporation (NASDAQ:NVDA) dropped 1.2% during mid-day trading on Monday . The stock traded as low as $185.91 and last traded at $188.22. Approximately 119,284,208 shares were traded during mid-day trading, a decline of 46% from the average daily volume of 221,682,516 shares. The stock had previously closed at $190.53.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Large Groq deal strengthens NVIDIA’s product moat by adding inference-focused LPUs, talent and a non‑exclusive license — a direct play into low‑latency inference that complements NVIDIA’s GPUs and could widen its market dominance. Five Things to Know About Nvidia’s $20 Billion Licensing Deal
• Positive Sentiment: Wall Street remains broadly bullish: several firms reaffirmed buy/outperform ratings and raised price targets (many in the $250–$275 range), supporting upside expectations versus current levels. ‘It’s a Clear Leader,’ Says Top Analysts About Nvidia Stock After Groq Tie-Up
• Positive Sentiment: Macro/earnings backdrop looks supportive — MarketBeat and others highlight Q4/Q1 earnings season as a bullish catalyst for AI leaders like NVIDIA, where guidance, bookings and buyback talk could re‑accelerate the stock. Why Q4 Earnings Season Could Be a Bullish Catalyst for S&P 500 Stocks
• Neutral Sentiment: NVIDIA completed a $5B private placement to buy Intel shares — this cements a strategic tie but ties up capital in an outside company; the long‑term strategic benefits are debated by investors. Nvidia Closes $5 Billion Purchase of Intel Shares
• Neutral Sentiment: Corporate tweaks — NVIDIA is reorganizing its cloud unit and preparing for Jensen Huang’s CES keynote — operational changes and upcoming messaging could be neutral-to-positive catalysts depending on execution. NVIDIA Corporation (NVDA) Reorganizes Cloud Division
• Negative Sentiment: Some investors are selling into the headlines: concerns about aggressive capital deployment (big M&A/licensing checks and the Intel stake) and year‑end profit‑taking have pressured the stock. Nvidia stock plunges nearly 2% today: here’s why NVDA is trading in red
• Negative Sentiment: Heavy insider selling in 2025 (noted across filings) is weighing on sentiment — executives monetized gains, which can create short‑term investor unease even if proceeds are for diversification. Insiders dumped over $1 billion Nvidia shares in 2025
• Negative Sentiment: Regulatory/antitrust scrutiny and questions about the non‑exclusive Groq licensing raise potential review risk and competitive oversight — another source of near‑term uncertainty. Former Assistant AG Kanter on the non-exclusive licensing agreement in the Nvidia-Groq deal

Analysts Set New Price Targets

NVDA has been the topic of a number of research analyst reports. Robert W. Baird reaffirmed an “outperform” rating and issued a $275.00 price target on shares of NVIDIA in a research note on Friday. Wall Street Zen upgraded NVIDIA from a “hold” rating to a “buy” rating in a report on Sunday, October 19th. Daiwa Capital Markets lifted their target price on shares of NVIDIA from $165.00 to $205.00 and gave the stock an “outperform” rating in a research note on Wednesday, September 17th. DZ Bank reiterated a “buy” rating on shares of NVIDIA in a research report on Thursday, November 20th. Finally, Rosenblatt Securities raised their price target on shares of NVIDIA from $240.00 to $245.00 and gave the stock a “buy” rating in a research note on Thursday, November 20th. Five analysts have rated the stock with a Strong Buy rating, forty-six have assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, NVIDIA currently has a consensus rating of “Buy” and an average price target of $262.14.

NVIDIA Stock Performance

The firm’s fifty day moving average is $186.12 and its 200-day moving average is $177.01. The company has a current ratio of 4.47, a quick ratio of 3.71 and a debt-to-equity ratio of 0.06. The stock has a market capitalization of $4.57 trillion, a PE ratio of 46.70, a price-to-earnings-growth ratio of 0.93 and a beta of 2.29.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings results on Wednesday, November 19th. The computer hardware maker reported $1.30 earnings per share for the quarter, beating analysts’ consensus estimates of $1.23 by $0.07. The business had revenue of $57.01 billion during the quarter, compared to analysts’ expectations of $54.66 billion. NVIDIA had a net margin of 53.01% and a return on equity of 99.24%. The business’s revenue for the quarter was up 62.5% on a year-over-year basis. During the same period last year, the business earned $0.81 earnings per share. As a group, research analysts anticipate that NVIDIA Corporation will post 2.77 earnings per share for the current year.

NVIDIA Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, December 26th. Investors of record on Thursday, December 4th were issued a $0.01 dividend. This represents a $0.04 annualized dividend and a yield of 0.0%. The ex-dividend date was Thursday, December 4th. NVIDIA’s dividend payout ratio (DPR) is 0.99%.

Insider Transactions at NVIDIA

In related news, EVP Debora Shoquist sold 80,000 shares of the stock in a transaction dated Tuesday, December 9th. The stock was sold at an average price of $184.65, for a total transaction of $14,772,000.00. Following the transaction, the executive vice president owned 1,574,443 shares of the company’s stock, valued at approximately $290,720,899.95. This represents a 4.84% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Harvey C. Jones sold 250,000 shares of the firm’s stock in a transaction dated Monday, December 15th. The shares were sold at an average price of $177.33, for a total value of $44,332,500.00. Following the transaction, the director owned 6,933,280 shares of the company’s stock, valued at $1,229,478,542.40. This trade represents a 3.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 2,086,474 shares of company stock valued at $382,482,492 over the last three months. 4.17% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Harbor Asset Planning Inc. acquired a new stake in NVIDIA in the 2nd quarter valued at about $28,000. Winnow Wealth LLC acquired a new position in NVIDIA during the 2nd quarter worth approximately $32,000. Longfellow Investment Management Co. LLC increased its position in shares of NVIDIA by 47.9% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after purchasing an additional 67 shares during the last quarter. Spurstone Advisory Services LLC acquired a new stake in shares of NVIDIA in the 2nd quarter valued at $40,000. Finally, Sellwood Investment Partners LLC acquired a new position in shares of NVIDIA during the third quarter worth $50,000. 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.