NVIDIA (NASDAQ:NVDA) Stock Falls 4.2% – Time to Sell?

NVIDIA Corporation (NASDAQ:NVDA) fell 4.2% during trading on Friday. The stock traded as low as $200.92 and last traded at $204.64. Approximately 165,557,268 shares were traded during mid-day trading, an increase of 11% from the average daily volume of 148,796,969 shares. The stock had previously closed at $213.66.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s recent results and outlook continue to support the bullish case. Articles highlight another substantial earnings beat, strong margins and management’s expectation that revenue growth could remain exceptionally high, potentially exceeding Wall Street forecasts for fiscal 2028. NVIDIA’s AI Dominance Could Have Further to Run
• Positive Sentiment: The company is expanding beyond individual GPUs into complete “AI factories,” including networking, software, modular data-center systems and edge products. Expanded collaborations with Microsoft, Meta, Oracle and other partners indicate that hyperscaler demand remains a key growth driver. How AI Factory Expansion Will Impact NVIDIA Investors
• Positive Sentiment: Analysts remain broadly constructive, arguing that NVIDIA’s valuation has become more reasonable after its correction while shortages in memory and optical networking could reinforce demand for its systems and ecosystem. NVIDIA Stock Analyst Estimates and Ratings
• Neutral Sentiment: NVIDIA’s reported investments, partnerships, loans and potential acquisitions—including its reported Hugging Face transaction and stakes in AI infrastructure companies—could strengthen its ecosystem, but they also increase regulatory scrutiny and financial exposure. The Department of Justice is examining whether the Hugging Face deal gives NVIDIA excessive control over AI-model distribution. NVIDIA’s Hugging Face Deal
• Negative Sentiment: Investors are concerned about reported plans for NVIDIA to provide billions of dollars in credit guarantees for an Anthropic data center. Such arrangements raise questions about circular AI financing, customer credit risk and whether spending is being supported by the companies that benefit from it. NVIDIA Credit Support for Nscale’s Anthropic Deal
• Negative Sentiment: A broader semiconductor selloff intensified after disappointing results and guidance from Intel and Amazon, reviving concerns that hyperscalers may be spending heavily on AI infrastructure before returns become clear. Why NVIDIA Shares Are Down
• Negative Sentiment: Rising memory costs are expected to pressure gross margins, while skeptics question whether NVIDIA can sustain its unusually rapid growth and profitability as the business becomes larger.
• Negative Sentiment: Reports involving a suspected Chinese intelligence asset’s proximity to CEO Jensen Huang and continuing scrutiny of NVIDIA’s China relationships add geopolitical, regulatory and reputational risk. NVIDIA has disputed aspects of the reports. NVIDIA Response to Chinese Intelligence Report

Analyst Ratings Changes

A number of research analysts recently weighed in on NVDA shares. Raymond James Financial set a $515.00 price objective on shares of NVIDIA and gave the company a “strong-buy” rating in a research report on Thursday, August 27th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of NVIDIA in a report on Monday, August 31st. TD Cowen reiterated a “buy” rating on shares of NVIDIA in a research note on Tuesday, August 18th. Phillip Securities increased their price objective on shares of NVIDIA from $285.00 to $300.00 and gave the stock a “buy” rating in a research note on Monday, August 31st. Finally, Wall Street Zen downgraded NVIDIA from a “strong-buy” rating to a “buy” rating in a research report on Saturday, October 24th. Five analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Buy” and a consensus target price of $321.47.

NVIDIA Trading Down 4.2%

The stock has a market capitalization of $4.93 trillion, a P/E ratio of 25.87, a PEG ratio of 1.65 and a beta of 2.22. The stock’s fifty day moving average price is $221.99 and its 200 day moving average price is $204.15. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. The business had revenue of $96.22 billion for the quarter, compared to analysts’ expectations of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company’s revenue was up 105.9% compared to the same quarter last year. During the same period last year, the business earned $1.05 EPS. Research analysts forecast that NVIDIA Corporation will post 9.30 earnings per share for the current year.

NVIDIA Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date was Thursday, September 10th. NVIDIA’s payout ratio is currently 12.64%.

NVIDIA announced that its Board of Directors has approved a stock repurchase plan on Monday, September 28th that allows the company to buy back $150 billion in shares. This repurchase authorization allows the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Share repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling at NVIDIA

In other NVIDIA news, CFO Colette Kress sold 34,918 shares of the stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the sale, the chief financial officer directly owned 765,103 shares in the company, valued at $167,595,812.15. This represents a 4.36% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy S. Teter sold 30,460 shares of the firm’s stock in a transaction on Monday, September 21st. The shares were sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the completion of the sale, the executive vice president owned 2,687,660 shares in the company, valued at $598,810,648. The trade was a 1.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Corporate insiders own 3.94% of the company’s stock.

Institutional Trading of NVIDIA

A number of hedge funds have recently added to or reduced their stakes in NVDA. Compass Wealth Management LLC GA grew its holdings in shares of NVIDIA by 0.6% during the 3rd quarter. Compass Wealth Management LLC GA now owns 51,211 shares of the computer hardware maker’s stock worth $11,696,000 after purchasing an additional 325 shares during the period. MFG Investments LLC acquired a new position in shares of NVIDIA during the third quarter worth $2,814,000. Third View Private Wealth LLC boosted its stake in shares of NVIDIA by 3.0% in the third quarter. Third View Private Wealth LLC now owns 306,795 shares of the computer hardware maker’s stock valued at $70,066,000 after purchasing an additional 8,969 shares during the period. Provenance Wealth Advisors LLC grew its holdings in NVIDIA by 147.3% during the 3rd quarter. Provenance Wealth Advisors LLC now owns 229,427 shares of the computer hardware maker’s stock valued at $52,397,000 after purchasing an additional 136,668 shares in the last quarter. Finally, Ackerman Capital Advisors LLC increased its stake in NVIDIA by 506.1% during the 3rd quarter. Ackerman Capital Advisors LLC now owns 8,182 shares of the computer hardware maker’s stock worth $1,869,000 after buying an additional 6,832 shares during the period. 65.27% of the stock is owned by institutional investors and hedge funds.

About NVIDIA

NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.

The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.