NVIDIA (NASDAQ:NVDA) Shares Down 2.4% – Here’s Why

NVIDIA Corporation (NASDAQ:NVDA) was down 2.4% on Thursday . The company traded as low as $205.85 and last traded at $207.40. Approximately 120,870,101 shares traded hands during trading, a decline of 28% from the average daily volume of 167,054,922 shares. The stock had previously closed at $212.50.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA expanded its Japan AI push with partnerships across robotics, manufacturing, healthcare, and infrastructure, including a national AI infrastructure effort and a new AI factory initiative. These deals deepen NVIDIA’s presence in a key growth market and support longer-term demand for its chips and software. Japan Government, Industrial Leaders and NVIDIA Launch the World’s First National AI Infrastructure
• Positive Sentiment: CEO Jensen Huang said Vera Rubin is already in production and pushed back on delay rumors, which should help reduce investor concern about NVIDIA’s next-generation product cycle. Nvidia CEO Huang denies Vera Rubin delays, says AI accelerator is in production
• Positive Sentiment: Analysts continued to sound constructive on NVIDIA, with KeyBanc reiterating an Overweight rating and a $330 price target, citing strong earnings potential into fiscal 2028. Analyst coverage update
• Neutral Sentiment: Several reports discussed NVIDIA’s expanding “physical AI” ecosystem in Japan and new tools like Cosmos 3 Edge and Nemotron, which reinforce the company’s platform strategy but may not move near-term earnings immediately.
• Negative Sentiment: NVDA also traded lower as semiconductor stocks sold off broadly, suggesting the weakness was driven more by sector rotation and risk reduction than by a company-specific setback. Why Nvidia stock is down around 2.5% on Thursday
• Negative Sentiment: Persistent concerns around insider selling and mixed institutional positioning may also weigh on sentiment, even though they do not change the underlying business outlook.

Analysts Set New Price Targets

NVDA has been the topic of a number of analyst reports. The Goldman Sachs Group restated a “buy” rating and set a $285.00 target price (up from $250.00) on shares of NVIDIA in a research report on Wednesday, May 20th. DZ Bank restated a “buy” rating on shares of NVIDIA in a research note on Thursday, May 21st. Itau BBA Securities dropped their price objective on NVIDIA from $256.00 to $218.00 in a report on Wednesday, June 24th. Craig Hallum increased their target price on NVIDIA from $245.00 to $275.00 and gave the stock a “buy” rating in a report on Thursday, May 21st. Finally, CICC Research boosted their price target on NVIDIA from $240.60 to $268.30 and gave the company an “outperform” rating in a research note on Friday, May 22nd. Two analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, NVIDIA has an average rating of “Moderate Buy” and a consensus target price of $304.26.

NVIDIA Stock Performance

The stock has a fifty day simple moving average of $209.96 and a two-hundred day simple moving average of $194.93. The stock has a market cap of $5.02 trillion, a price-to-earnings ratio of 31.76, a P/E/G ratio of 0.47 and a beta of 2.21. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company had revenue of $81.61 billion for the quarter, compared to analyst estimates of $78.42 billion. During the same quarter last year, the company posted $0.81 EPS. The company’s revenue for the quarter was up 85.2% compared to the same quarter last year. Analysts expect that NVIDIA Corporation will post 8.8 EPS for the current fiscal year.

NVIDIA Increases Dividend

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

NVIDIA declared that its board has initiated a share buyback plan on Wednesday, May 20th that allows the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to reacquire up to 1.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership 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 dated Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total value of $3,343,815.00. Following the completion of the transaction, the director owned 116,135 shares of the company’s stock, valued at approximately $25,053,803.55. This represents a 11.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Mark A. Stevens sold 885,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the completion of the sale, the director owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 1,901,125 shares of company stock valued at $410,583,015. 3.94% of the stock is currently owned by corporate insiders.

Institutional Trading of NVIDIA

A number of hedge funds have recently added to or reduced their stakes in the stock. Lifetime Wealth Management P.C. bought a new stake in NVIDIA during the 4th quarter worth $26,000. Longview Financial Advisors Inc. bought a new position in NVIDIA in the first quarter valued at about $27,000. Longfellow Investment Management Co. LLC boosted its stake in shares of NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after purchasing an additional 67 shares in the last quarter. Phillip James Consulting Co. acquired a new stake in shares of NVIDIA during the first quarter valued at about $40,000. Finally, Spurstone Advisory Services LLC bought a new stake in shares of NVIDIA during the second quarter worth about $40,000. Institutional investors and hedge funds 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.