NVIDIA (NASDAQ:NVDA) Shares Down 3.6% – Here’s What Happened

NVIDIA Corporation (NASDAQ:NVDA)’s share price dropped 3.6% during mid-day trading on Wednesday . The stock traded as low as $190.01 and last traded at $190.01. 145,178,867 shares were traded during trading, a decline of 12% from the average daily volume of 164,486,844 shares. The stock had previously closed at $197.01.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: AI demand remains robust: NVIDIA partner SK Hynix reported a more than sixfold increase in quarterly operating profit, citing strong demand for advanced memory used in AI data centers. NVIDIA’s HBM supply relationships support the company’s system-level architecture and future growth visibility. SK Hynix posts sixfold rise in Q2 profit on AI chip demand
• Positive Sentiment: Analysts and investors continue to see upside: Erste Group modestly raised its fiscal 2027 and 2028 EPS estimates, while UBS said the semiconductor selloff and “circular financing” concerns appear overblown. Commentators also highlighted NVIDIA’s high profitability, including a gross margin above 70%, strong return on invested capital and leadership in complete AI systems rather than chips alone. Chip selloff overblown, UBS says
• Positive Sentiment: Expansion beyond data centers: CEO Jensen Huang’s focus on robotics and “physical AI” provides an additional long-term growth narrative across manufacturing, autos and other industries. NVIDIA stock rebounds on robotics expansion

Analyst Ratings Changes

A number of equities analysts have recently commented on the stock. BNP Paribas Exane increased their price target on shares of NVIDIA from $270.00 to $285.00 and gave the stock an “outperform” rating in a report on Thursday, May 21st. Mizuho set a $300.00 target price on shares of NVIDIA in a research report on Thursday, May 21st. Rosenblatt Securities reissued a “buy” rating and issued a $325.00 target price on shares of NVIDIA in a research note on Thursday, May 21st. DA Davidson restated a “buy” rating and set a $300.00 price target on shares of NVIDIA in a research report on Monday, June 1st. Finally, Cantor Fitzgerald reaffirmed an “overweight” rating and set a $350.00 price target on shares of NVIDIA in a research note on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, NVIDIA has an average rating of “Buy” and an average target price of $304.26.

NVIDIA Stock Down 3.6%

The firm has a market cap of $4.60 trillion, a PE ratio of 29.10, a PEG ratio of 0.38 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. The company’s 50-day simple moving average is $206.86 and its two-hundred day simple moving average is $195.98.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. The firm had revenue of $81.61 billion for the quarter, compared to analysts’ expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company’s revenue for the quarter was up 85.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.81 earnings per share. On average, analysts predict that NVIDIA Corporation will post 8.79 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend was Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s dividend payout ratio is currently 15.31%.

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

Insiders Place Their Bets

In other news, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total value of $186,000,450.00. Following the sale, the director directly owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Stephen C. Neal sold 15,500 shares of the business’s stock in a transaction that occurred on 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 transaction, the director directly owned 116,135 shares in the company, valued at $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. In the last 90 days, insiders sold 1,901,125 shares of company stock worth $410,583,015. 3.94% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in NVDA. Defender Capital LLC. boosted its stake in NVIDIA by 0.7% during the 2nd quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker’s stock valued at $1,507,000 after purchasing an additional 50 shares during the period. Kooman & Associates increased its position in NVIDIA by 0.6% in the 2nd quarter. Kooman & Associates now owns 8,464 shares of the computer hardware maker’s stock worth $1,694,000 after buying an additional 50 shares during the period. Roof Eidam Maycock Peralta LLC increased its position in NVIDIA by 0.3% in the 2nd quarter. Roof Eidam Maycock Peralta LLC now owns 18,827 shares of the computer hardware maker’s stock worth $3,767,000 after buying an additional 50 shares during the period. Spectrum Financial Alliance Ltd LLC lifted its holdings in shares of NVIDIA by 3.8% during the first quarter. Spectrum Financial Alliance Ltd LLC now owns 1,395 shares of the computer hardware maker’s stock worth $243,000 after buying an additional 51 shares during the last quarter. Finally, PFS Partners LLC boosted its position in shares of NVIDIA by 1.2% in the second quarter. PFS Partners LLC now owns 4,375 shares of the computer hardware maker’s stock valued at $875,000 after acquiring an additional 51 shares during the period. 65.27% of the stock is owned by hedge funds and other 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.