NVIDIA (NASDAQ:NVDA) Stock Price Down 3.4% – Here’s Why

NVIDIA Corporation (NASDAQ:NVDA)’s stock price dropped 3.4% during trading on Monday . The company traded as low as $203.00 and last traded at $203.6910. Approximately 120,348,642 shares were traded during mid-day trading, a decline of 28% from the average daily volume of 167,839,828 shares. The stock had previously closed at $210.96.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: KeyBanc raised its price target on NVIDIA to $330 from $310 while keeping an Overweight rating, citing continued strength in AI infrastructure spending and long-term demand for NVIDIA’s chips. What Is Going on With NVIDIA Stock on Tuesday?
• Positive Sentiment: Multiple articles pointed to NVIDIA’s expanding AI ecosystem, including new partnerships across cloud, networking, autos, telecom, and related enterprise AI efforts, reinforcing the view that the company remains the core platform in AI hardware. NVIDIA’s AI Partnerships Expand: Can This Keep NVDA Ahead of Rivals?
• Positive Sentiment: Reports that China may allow a limited number of AI firms to buy NVIDIA H200 chips raised hopes for a China revenue rebound, even if the rollout is expected to be gradual and tightly controlled. ZTE among Chinese firms licensed to purchase Nvidia’s H200 chips, documents show
• Neutral Sentiment: Several commentary pieces remained broadly bullish on NVIDIA’s AI dominance, arguing that the company still has a wide moat, strong revenue growth, and more upside if AI capex stays elevated. NVIDIA (NVDA): One of the Best Monopoly Stocks to Buy According to Hedge Funds
• Neutral Sentiment: At the same time, some reports highlighted caution around the pace of the China comeback, possible delays in the next-generation Rubin rollout, and competitive pressure from rivals like Broadcom, AMD, Google, and others. Nvidia Faces ‘Slight Delay’ in Rubin Chip Rollout. What It Means for the Stock.
• Negative Sentiment: One article noted that Cypress Funds LLC reduced its NVIDIA stake, and another said U.S. trade officials said only a very small number of H200 chips had been shipped to China so far, which underscores lingering regulatory uncertainty. Cypress Funds Llc slashes Nvidia stake by 72,518 shares

Analysts Set New Price Targets

NVDA has been the topic of several recent analyst reports. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $255.00 target price (up from $220.00) on shares of NVIDIA in a report on Thursday, May 21st. Wall Street Zen downgraded NVIDIA from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 4th. Rothschild & Co Redburn boosted their price objective on shares of NVIDIA from $280.00 to $300.00 and gave the stock a “buy” rating in a research report on Tuesday, May 26th. The Goldman Sachs Group reiterated a “buy” rating and set a $285.00 price target (up from $250.00) on shares of NVIDIA in a research note on Wednesday, May 20th. Finally, Wedbush raised their price objective on NVIDIA from $300.00 to $330.00 and gave the stock an “outperform” rating in a report on Thursday, May 21st. Two 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, NVIDIA has a consensus rating of “Moderate Buy” and an average price target of $304.26.

NVIDIA Price Performance

The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The company has a market capitalization of $5.13 trillion, a PE ratio of 32.43, a P/E/G ratio of 0.45 and a beta of 2.21. The company’s 50-day simple moving average is $209.87 and its 200-day simple moving average is $194.76.

NVIDIA (NASDAQ:NVDA) last announced its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business had revenue of $81.61 billion during the quarter, compared to analysts’ expectations of $78.42 billion. During the same period in the prior year, the company earned $0.81 earnings per share. The business’s revenue was up 85.2% compared to the same quarter last year. As a group, sell-side analysts anticipate that NVIDIA Corporation will post 8.8 earnings per share for the current year.

NVIDIA Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were paid a $0.25 dividend. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. The ex-dividend date was Thursday, June 4th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is 15.31%.

NVIDIA declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its stock is undervalued.

Insider Activity

In related news, Director John Dabiri sold 625 shares of the stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total transaction of $133,750.00. Following the completion of the sale, the director directly owned 14,163 shares of the company’s stock, valued at $3,030,882. This trade represents a 4.23% decrease in their ownership of the stock. The sale was disclosed in a document filed 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, Director Stephen C. Neal sold 15,500 shares of NVIDIA 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 transaction, the director owned 116,135 shares in the company, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 1,901,125 shares of company stock valued at $410,583,015. Company insiders own 3.94% of the company’s stock.

Hedge Funds Weigh In On NVIDIA

Large investors have recently bought and sold shares of the company. Brighton Jones LLC raised its holdings in NVIDIA by 12.4% during the fourth quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker’s stock worth $43,631,000 after purchasing an additional 35,815 shares in the last quarter. Bank Pictet & Cie Europe AG lifted its position in NVIDIA by 1.0% in the fourth quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker’s stock valued at $315,100,000 after purchasing an additional 22,929 shares during the period. Highview Capital Management LLC DE boosted its holdings in NVIDIA by 6.7% in the 4th quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker’s stock valued at $7,842,000 after purchasing an additional 3,653 shares in the last quarter. Hudson Value Partners LLC boosted its holdings in NVIDIA by 30.7% in the 4th quarter. Hudson Value Partners LLC now owns 50,658 shares of the computer hardware maker’s stock valued at $6,805,000 after purchasing an additional 11,900 shares in the last quarter. Finally, Wealth Group Ltd. increased its position in NVIDIA by 15.7% during the 1st quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker’s stock worth $715,000 after purchasing an additional 896 shares during the period. Hedge funds and other institutional investors own 65.27% of the company’s stock.

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.