NVIDIA (NASDAQ:NVDA) Shares Down 2.4% – Time to Sell?

NVIDIA Corporation (NASDAQ:NVDA) shares traded down 2.4% on Thursday . The stock traded as low as $217.20 and last traded at $218.36. 100,702,071 shares traded hands during mid-day trading, a decline of 36% from the average session volume of 157,938,500 shares. The stock had previously closed at $223.67.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Analyst upgrade and growth outlook: Piper Sandler upgraded NVIDIA to “strong buy,” while CEO Jensen Huang reiterated expectations for roughly 70% revenue growth next year and a potential $3 trillion–$4 trillion AI market by 2030. Erste Group also raised its FY2027 EPS estimate to $9.23 from $9.00. NVIDIA analyst upgrade Jensen Huang growth outlook
• Positive Sentiment: Evidence of sustained chip demand: TSMC reported August revenue growth of 53.3% year over year, signaling continued orders for AI accelerators and advanced packaging. The data supports NVIDIA’s view that hyperscaler and enterprise AI infrastructure spending remains strong. TSMC August revenue
• Positive Sentiment: Infrastructure expansion and partnerships: NVIDIA is working with Australian cloud and data-center companies on up to 2 gigawatts of AI-factory capacity by 2027. Its collaborations with Palantir on sovereign AI supply chains and d-Matrix on chip-linking technology further expand the CUDA-based ecosystem and potential future demand. NVIDIA Australia AI infrastructure d-Matrix partnership
• Neutral Sentiment: Valuation remains the central debate: Investors are weighing NVIDIA’s exceptional growth, profitability and AI leadership against a very high market capitalization and the possibility that optimistic forecasts are already reflected in the stock. Analysts continue to compare NVIDIA with Broadcom and AMD as custom silicon competition develops. NVIDIA valuation debate
• Negative Sentiment: Regulatory and sentiment risks: The Justice Department is reportedly examining NVIDIA’s licensing arrangement with Groq for possible antitrust concerns. In addition, insiders have reported substantial selling with no purchases in the past six months, while higher oil prices and Treasury yields have pressured high-growth technology shares. DOJ Groq investigation NVIDIA insider sales

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on NVDA shares. Phillip Securities boosted their price target on shares of NVIDIA from $285.00 to $300.00 and gave the company a “buy” rating in a report on Monday, August 31st. Oppenheimer set a $315.00 price objective on NVIDIA and gave the stock an “outperform” rating in a research note on Thursday, August 27th. Royal Bank Of Canada lifted their target price on NVIDIA from $300.00 to $330.00 and gave the stock an “outperform” rating in a report on Thursday, August 27th. Truist Financial boosted their target price on NVIDIA from $307.00 to $346.00 and gave the company a “buy” rating in a research note on Thursday, August 27th. Finally, Wall Street Zen upgraded NVIDIA from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 29th. Three equities research analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus price target of $324.34.

NVIDIA Stock Performance

The stock has a market capitalization of $5.26 trillion, a price-to-earnings ratio of 27.60, a price-to-earnings-growth ratio of 1.71 and a beta of 2.22. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. The stock’s 50 day moving average is $213.29 and its two-hundred day moving average is $203.33.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.13. The firm had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The company’s revenue for the quarter was up 105.9% on a year-over-year basis. During the same quarter last year, the business posted $1.05 EPS. Analysts expect that NVIDIA Corporation will post 9.12 earnings per share for the current fiscal year.

NVIDIA Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, September 10th. NVIDIA’s dividend payout ratio (DPR) is currently 12.64%.

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

Insider Activity at NVIDIA

In other NVIDIA news, EVP Timothy Teter sold 30,000 shares of the company’s stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the completion of the transaction, the executive vice president owned 2,687,660 shares of the company’s stock, valued at $585,587,360.80. This represents a 1.10% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of the firm’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the transaction, the director directly owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 2,585,740 shares of company stock worth $571,015,527 in the last 90 days. Company insiders own 3.94% of the company’s stock.

Institutional Investors Weigh In On NVIDIA

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Boyd Wealth Management LLC lifted its position in NVIDIA by 273.4% during the second quarter. Boyd Wealth Management LLC now owns 9,145 shares of the computer hardware maker’s stock worth $1,830,000 after purchasing an additional 6,696 shares during the period. Diversified Enterprises LLC raised its position in shares of NVIDIA by 44.2% in the 4th quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker’s stock valued at $23,798,000 after buying an additional 39,129 shares in the last quarter. Altshuler Shaham Ltd lifted its holdings in shares of NVIDIA by 6,451.9% during the 1st quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker’s stock worth $111,134,000 after acquiring an additional 627,510 shares during the period. ASR Vermogensbeheer N.V. lifted its holdings in shares of NVIDIA by 1.8% during the 4th quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker’s stock worth $591,086,000 after acquiring an additional 54,877 shares during the period. Finally, Storen Legacy Partners LLC bought a new stake in shares of NVIDIA during the 4th quarter worth approximately $1,350,000. 65.27% of the stock is currently owned by institutional investors and hedge funds.

NVIDIA Company Profile

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company’s offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.