NVIDIA (NASDAQ:NVDA) Shares Down 1.3% – Here’s Why

Shares of NVIDIA Corporation (NASDAQ:NVDA) fell 1.3% on Monday . The company traded as low as $218.37 and last traded at $222.32. 144,682,403 shares traded hands during mid-day trading, a decline of 15% from the average session volume of 170,539,172 shares. The stock had previously closed at $225.32.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA delivered a major earnings beat, with revenue of $81.6 billion and diluted EPS of $2.39, both above expectations, while data center revenue jumped to a record $75.2 billion. Article Title
• Positive Sentiment: The company raised shareholder returns by authorizing an additional $80 billion in buybacks and boosting its quarterly dividend from $0.01 to $0.25 per share, signaling strong confidence in future cash generation. Article Title
• Positive Sentiment: Second-quarter revenue guidance of about $91.0 billion, plus or minus 2%, came in above Wall Street’s estimate, reinforcing the view that AI infrastructure demand remains extremely strong. Article Title
• Positive Sentiment: Several analysts reaffirmed bullish views and raised price targets ahead of the report, reflecting continued confidence in NVIDIA’s AI leadership and earnings power. Article Title
• Neutral Sentiment: Investor attention is also focused on whether NVIDIA can keep near-75% gross margins and maintain its growth rate as competition, China exposure, and a high valuation become bigger questions. Article Title
• Negative Sentiment: Some coverage highlighted concerns that expectations were extremely elevated heading into earnings, with options pricing implying a large post-report swing and little room for disappointment. Article Title

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on NVDA shares. Itau BBA Securities restated a “market perform” rating on shares of NVIDIA in a research note on Thursday, February 26th. Rosenblatt Securities restated a “buy” rating and issued a $325.00 target price on shares of NVIDIA in a research note on Monday, March 23rd. Robert W. Baird raised their target price on NVIDIA from $275.00 to $300.00 and gave the company an “outperform” rating in a research note on Thursday, February 26th. William Blair set a $300.00 target price on NVIDIA in a research note on Thursday, March 12th. Finally, BTIG Research started coverage on NVIDIA in a research note on Wednesday, April 15th. They issued a “buy” rating for the company. Four analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, NVIDIA presently has a consensus rating of “Buy” and a consensus price target of $279.06.

NVIDIA Stock Up 1.3%

The stock has a 50 day simple moving average of $194.00 and a 200-day simple moving average of $188.61. The firm has a market cap of $5.41 trillion, a PE ratio of 45.61, a PEG ratio of 0.69 and a beta of 2.25. The company has a debt-to-equity ratio of 0.05, a current ratio of 3.91 and a quick ratio of 3.24.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. The business had revenue of $81.62 billion during the quarter, compared to analysts’ expectations of $78.42 billion. NVIDIA had a return on equity of 97.37% and a net margin of 55.60%. Sell-side analysts predict that NVIDIA Corporation will post 7.85 EPS for the current fiscal year.

NVIDIA Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, April 1st. Shareholders of record on Wednesday, March 11th were issued a $0.01 dividend. The ex-dividend date of this dividend was Wednesday, March 11th. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.0%. NVIDIA’s dividend payout ratio (DPR) is presently 0.82%.

Insiders Place Their Bets

In other NVIDIA news, Director Aarti S. Shah sold 19,000 shares of NVIDIA stock in a transaction on Thursday, March 19th. The stock was sold at an average price of $176.71, for a total value of $3,357,490.00. Following the completion of the sale, the director owned 36,007 shares of the company’s stock, valued at approximately $6,362,796.97. This trade represents a 34.54% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director John Dabiri sold 3,004 shares of NVIDIA stock in a transaction on Friday, March 13th. The stock was sold at an average price of $184.90, for a total value of $555,439.60. Following the completion of the sale, the director directly owned 14,788 shares of the company’s stock, valued at approximately $2,734,301.20. The trade was a 16.88% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 906,336 shares of company stock worth $162,802,518. 4.17% of the stock is owned by corporate insiders.

Institutional Trading of NVIDIA

Several large investors have recently modified their holdings of the company. Norges Bank bought a new stake in NVIDIA during the fourth quarter valued at about $62,244,133,000. J. Stern & Co. LLP lifted its position in shares of NVIDIA by 13,709.1% in the fourth quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock valued at $23,454,297,000 after acquiring an additional 124,849,603 shares in the last quarter. Cardano Risk Management B.V. lifted its position in shares of NVIDIA by 896.4% in the fourth quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker’s stock valued at $14,570,119,000 after acquiring an additional 70,283,539 shares in the last quarter. Capital Research Global Investors lifted its position in shares of NVIDIA by 16.1% in the third quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker’s stock valued at $30,855,564,000 after acquiring an additional 22,896,705 shares in the last quarter. Finally, Laurel Wealth Advisors LLC lifted its position in shares of NVIDIA by 15,496.1% in the second quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker’s stock valued at $3,454,534,000 after acquiring an additional 21,725,326 shares in the last quarter. 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.