NVIDIA (NASDAQ:NVDA) Stock Price Down 1.3% – What’s Next?

NVIDIA Corporation (NASDAQ:NVDA) fell 1.3% during trading on Wednesday . The company traded as low as $193.45 and last traded at $197.58. Approximately 141,671,574 shares changed hands during mid-day trading, a decline of 17% from the average daily volume of 170,048,422 shares. The stock had previously closed at $200.09.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA expanded its AI footprint through several new partnerships, including a sovereign AI initiative with Palantir and a data-center project with Valar Atomics aimed at conserving water, reinforcing demand for its AI infrastructure. Valar nuclear startup partners with Nvidia on data center aiming to conserve water
• Positive Sentiment: Analyst commentary remained constructive, with multiple reports pointing to NVIDIA’s leadership in AI, edge computing, robotics, and potential long-term TAM expansion as AI moves beyond data centers. Nvidia (NVDA) Remains a Key Humanoid Robotics Play, Bernstein Says
• Positive Sentiment: Several articles highlighted continued bullishness on the stock, including views that recent weakness could be a buying opportunity and that NVIDIA’s market cap and revenue growth still support a strong long-term thesis. Here’s Why Nvidia (NVDA) is a Strong Growth Stock
• Neutral Sentiment: NVIDIA’s partnership with Palantir to deploy sovereign AI for government and infrastructure customers is a strategic positive, but the market may still be digesting it as part of a broader AI-software rally rather than a direct near-term earnings boost. NVIDIA (NVDA), Palantir (PLTR) Partner to Deploy Secure AI Models for Government and Infrastructure
• Neutral Sentiment: Wall Street notes that NVIDIA remains a core AI leader, but the stock’s recent underperformance versus the broader semiconductor group suggests investors are waiting for either a fresh catalyst or a better entry point. Nvidia Stock Trails Chip Rivals in a Tough First Half—It Could Be the New Normal
• Negative Sentiment: Profit-taking across semiconductors, concerns about valuation compression, and warnings from some traders about a possible slide toward $165 are pressuring the stock in the near term. Why Nvidia stock is slipping over 2% today
• Negative Sentiment: Michael Burry reportedly added to bearish bets against NVIDIA and other chip stocks, reinforcing skepticism that the AI trade may be getting overheated. ‘Big Short’ investor Michael Burry reveals fresh bets against Tesla, Nvidia, and Caterpillar
• Negative Sentiment: Several pieces pointed to June weakness, chip-sector rotation, and stock-specific underperformance as reasons the shares are struggling to hold support near $200. How Nvidia Stock Is Trading Today

Analyst Ratings Changes

A number of equities research analysts have weighed in on the stock. Wolfe Research reiterated an “outperform” rating and set a $275.00 price target on shares of NVIDIA in a research note on Thursday, May 21st. William Blair reaffirmed an “outperform” rating on shares of NVIDIA in a report on Tuesday, June 2nd. Argus lifted their target price on shares of NVIDIA from $220.00 to $270.00 and gave the company a “buy” rating in a research report on Thursday, May 21st. The Goldman Sachs Group reissued a “buy” rating and issued a $285.00 target price (up from $250.00) on shares of NVIDIA in a research note on Wednesday, May 20th. Finally, Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $255.00 price target (up from $220.00) on shares of NVIDIA in a research report on Thursday, May 21st. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus price target of $303.84.

NVIDIA Stock Performance

The stock has a market capitalization of $4.78 trillion, a price-to-earnings ratio of 30.26, a price-to-earnings-growth ratio of 0.43 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 stock’s 50-day simple moving average is $210.57 and its 200 day simple moving average is $193.24.

NVIDIA (NASDAQ:NVDA) last posted its earnings results 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 company had revenue of $81.61 billion during 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%. NVIDIA’s quarterly revenue was up 85.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.81 earnings per share. Analysts expect that NVIDIA Corporation will post 8.69 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were given a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 0.5%. The ex-dividend date was Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s dividend payout ratio is presently 15.31%.

NVIDIA declared that its Board of Directors has initiated a stock buyback plan on Wednesday, May 20th that allows the company to repurchase $80.00 billion in shares. This repurchase authorization allows the computer hardware maker to buy up to 1.5% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

Insiders Place Their Bets

In other news, Director Stephen C. Neal sold 15,500 shares of the stock in a transaction on 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 sale, the director owned 116,135 shares in the company, valued at approximately $25,053,803.55. This represents a 11.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director John Dabiri sold 625 shares of the firm’s stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the completion of the sale, the director owned 14,163 shares of the company’s stock, valued at approximately $3,030,882. This trade represents a 4.23% 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. Over the last quarter, insiders have sold 1,901,125 shares of company stock valued at $410,583,015. 3.94% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On NVIDIA

A number of institutional investors have recently modified their holdings of NVDA. Spectrum Financial Alliance Ltd LLC raised its position in NVIDIA by 3.8% in the 1st quarter. Spectrum Financial Alliance Ltd LLC now owns 1,395 shares of the computer hardware maker’s stock worth $243,000 after purchasing an additional 51 shares during the last quarter. Presidio Capital Management LLC increased its stake in shares of NVIDIA by 0.4% in the 4th quarter. Presidio Capital Management LLC now owns 15,137 shares of the computer hardware maker’s stock valued at $2,823,000 after buying an additional 53 shares during the period. LMG Wealth Partners LLC raised its position in shares of NVIDIA by 0.7% during the fourth quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker’s stock worth $1,427,000 after acquiring an additional 53 shares during the last quarter. Vision Financial Markets LLC raised its position in shares of NVIDIA by 1.2% during the third quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker’s stock worth $866,000 after acquiring an additional 53 shares during the last quarter. Finally, Cyr Financial Inc. lifted its stake in shares of NVIDIA by 0.7% during the third quarter. Cyr Financial Inc. now owns 7,737 shares of the computer hardware maker’s stock valued at $1,444,000 after acquiring an additional 54 shares during the period. 65.27% of the stock is owned by 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.