NVIDIA (NASDAQ:NVDA) Trading Down 4.6% – Here’s Why

Shares of NVIDIA Corporation (NASDAQ:NVDA) were down 4.6% on Friday . The stock traded as low as $216.81 and last traded at $217.55. 193,499,131 shares were traded during mid-day trading, an increase of 21% from the average session volume of 159,716,031 shares. The stock had previously closed at $227.98.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA reported fiscal Q2 revenue of approximately $96.2 billion, up 106% year over year and ahead of Wall Street expectations. Data-center revenue rose 117% to $89 billion, while adjusted EPS of $2.22 also exceeded consensus. The results reinforced that hyperscaler AI spending remains robust. Nvidia rises after signaling longer AI spending runway
• Positive Sentiment: Management guided to roughly $108 billion in fiscal Q3 revenue and indicated that fiscal 2028 sales could grow about 70%, well above the roughly 45% growth analysts had modeled. The forecast has shifted the debate from whether AI demand is slowing to whether NVIDIA and its suppliers can build enough capacity. Nvidia’s 70% growth forecast
• Positive Sentiment: Several analysts raised their NVIDIA price targets following the results, including Wedbush, Truist, RBC and JPMorgan. The upgrades reflect expectations for sustained Blackwell demand, the Vera Rubin product ramp and strong order visibility through fiscal 2028. Wedbush lifts Nvidia price target
• Neutral Sentiment: NVIDIA is reportedly pursuing a roughly $12.9 billion acquisition of open-source AI platform Hugging Face. The deal could expand NVIDIA’s software ecosystem and improve visibility into future AI workloads, but reports indicate terms may not be finalized and the valuation is high relative to Hugging Face’s revenue. Nvidia agrees to buy Hugging Face report
• Negative Sentiment: Investors are locking in gains after NVIDIA’s strong post-earnings rally. The stock’s elevated valuation and proximity to record levels make it vulnerable to short-term profit-taking even though fundamentals remain strong. Nvidia AMD Intel stocks slide as investors take profits
• Negative Sentiment: Gross-margin expectations are moving lower toward roughly 72%–73% as NVIDIA absorbs higher memory, packaging and infrastructure costs. Management also said supply constraints remain significant, potentially limiting how much demand can immediately translate into revenue and cash flow.
• Negative Sentiment: Broader market pressure is coming from a more hawkish Federal Reserve outlook, while NVIDIA’s decision to exclude China data-center compute revenue from its forecast underscores continuing export-control and geopolitical risks. Reports that the company paused some revenue-sharing arrangements with AI cloud providers also raise questions about financing and customer ROI. Nvidia pauses revenue-sharing deals

Analysts Set New Price Targets

NVDA has been the topic of several analyst reports. KeyCorp reaffirmed an “overweight” rating and set a $330.00 price target on shares of NVIDIA in a research note on Monday, August 24th. Barclays restated an “overweight” rating on shares of NVIDIA in a research note on Thursday, May 21st. Citic Securities lifted their target price on NVIDIA from $242.00 to $315.00 and gave the stock a “buy” rating in a research report on Friday, May 22nd. Melius Research set a $420.00 price target on NVIDIA in a research note on Thursday. Finally, Needham & Company LLC increased their price target on NVIDIA from $270.00 to $300.00 and gave the company a “buy” rating in a report on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $322.61.

NVIDIA Stock Down 4.6%

The firm has a market cap of $5.24 trillion, a P/E ratio of 27.50, a PEG ratio of 0.42 and a beta of 2.23. The firm’s 50-day moving average price is $208.09 and its 200 day moving average price is $200.77. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 2.85.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share 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 during the quarter, compared to analyst estimates of $92.27 billion. During the same period in the previous year, the company earned $1.05 earnings per share. NVIDIA’s quarterly revenue was up 105.9% on a year-over-year basis. On average, equities research analysts expect that NVIDIA Corporation will post 9.1 earnings per share for the current fiscal year.

NVIDIA Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be paid a dividend of $0.25 per share. The ex-dividend date is Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is 15.31%.

NVIDIA declared that its board has approved a share repurchase program on Wednesday, May 20th that allows the company to repurchase $80.00 billion in shares. This repurchase authorization allows the computer hardware maker to reacquire up to 1.5% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s board of directors believes its stock is undervalued.

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 on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the sale, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Mark A. Stevens sold 885,000 shares of the stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the sale, the director directly owned 5,207,271 shares in the company, valued at $1,094,412,146.07. This trade represents a 14.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 1,900,500 shares of company stock valued at $410,449,265. 3.94% of the stock is owned by insiders.

Hedge Funds Weigh In On NVIDIA

Several institutional investors have recently made changes to their positions in NVDA. State Street Corp raised its stake in shares of NVIDIA by 1.2% during the fourth quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker’s stock valued at $184,911,111,000 after purchasing an additional 11,451,386 shares in the last quarter. Geode Capital Management LLC increased its stake in 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 buying an additional 3,383,441 shares during the period. Norges Bank bought a new stake in shares of NVIDIA during the 4th quarter worth about $62,244,133,000. Bank of America Corp DE lifted its stake in shares of NVIDIA by 2.2% in the 2nd quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker’s stock worth $39,090,956,000 after acquiring an additional 4,165,875 shares during the period. Finally, Legal & General Group Plc boosted its holdings in shares of NVIDIA by 1.5% in the third quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker’s stock valued at $33,808,862,000 after acquiring an additional 2,609,560 shares in the last quarter. 65.27% of the stock is owned by institutional investors.

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.