NVIDIA (NASDAQ:NVDA) Stock Price Down 2.3% – What’s Next?

NVIDIA Corporation (NASDAQ:NVDA)’s share price traded down 2.3% during trading on Tuesday . The stock traded as low as $218.69 and last traded at $219.74. 102,507,493 shares traded hands during trading, a decline of 36% from the average session volume of 159,941,875 shares. The stock had previously closed at $225.01.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Analysts remain broadly bullish. Stifel reiterated a Buy rating with a $282 price target, while Bank of America reportedly set a $350 target, citing NVIDIA’s valuation discount, strong profitability and potential for additional upside. Analyst updates Nvidia stock price ahead of earnings
• Positive Sentiment: Supply-chain checks from Foxconn and Super Micro, along with continued hyperscaler spending, suggest demand for NVIDIA’s AI systems remains robust heading into the earnings report. NVIDIA: What Foxconn and Super Micro Are Telling Us about the AI Boom
• Positive Sentiment: NVIDIA is expanding beyond chip sales by connecting GPU customers with data-center operators in the Nordic region. The initiative could help accelerate deployments, increase GPU utilization and strengthen NVIDIA’s influence across the AI infrastructure ecosystem. Nvidia plays matchmaker in Nordics
• Positive Sentiment: Reports that NVIDIA may invest in AI data-labeling company Mercor, alongside its previously disclosed investment gains from xAI, highlight the company’s strategy of building a broader AI portfolio. Nvidia Weighs Investment in Mercor
• Neutral Sentiment: NVIDIA guided for fiscal second-quarter revenue of approximately $91 billion, plus or minus 2%, while Wall Street’s average estimate is about $91.9 billion. The guidance is strong, but the slightly higher analyst forecast leaves little room for an earnings disappointment. Nvidia Guided to $91 Billion
• Negative Sentiment: China remains a major risk. Small H200 shipments have reportedly reached China, but deliveries face restrictions, while U.S. officials are examining loopholes that allow Chinese firms to access NVIDIA computing power through overseas data centers. Nvidia H200 chips reach China in small shipments
• Negative Sentiment: Investors are also concerned about valuation and the risks of NVIDIA financing or supporting large AI infrastructure projects, including its reported backing for an OpenAI data center. Higher Treasury yields and weakness across chip stocks have added pressure ahead of earnings.

Wall Street Analyst Weigh In

A number of research firms have issued reports on NVDA. Melius Research set a $400.00 price target on NVIDIA in a research note on Thursday, May 21st. Barclays reaffirmed an “overweight” rating on shares of NVIDIA in a research report on Thursday, May 21st. KeyCorp restated an “overweight” rating and set a $330.00 target price (up from $310.00) on shares of NVIDIA in a research note on Tuesday, July 14th. Seaport Research Partners increased their price objective on shares of NVIDIA from $140.00 to $180.00 and gave the stock a “sell” rating in a research note on Thursday, May 21st. Finally, Mizuho set a $300.00 price target on NVIDIA in a research note on Thursday, May 21st. Three research analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus price target of $305.94.

NVIDIA Stock Performance

The stock has a market capitalization of $5.26 trillion, a PE ratio of 33.32, a price-to-earnings-growth ratio of 0.44 and a beta of 2.23. The business’s fifty day moving average is $207.04 and its two-hundred day moving average is $199.23. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04.

NVIDIA (NASDAQ:NVDA) last announced its 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 net margin of 62.97% and a return on equity of 96.94%. The firm had revenue of $81.61 billion for the quarter, compared to analysts’ expectations of $78.42 billion. During the same period in the prior year, the company earned $0.81 EPS. The business’s revenue was up 85.2% compared to the same quarter last year. As a group, research analysts anticipate that NVIDIA Corporation will post 8.59 EPS for the current fiscal year.

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

Insider Transactions at NVIDIA

In other news, Director John Dabiri sold 625 shares of NVIDIA stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the completion of the sale, the director owned 14,163 shares of the company’s stock, valued at approximately $3,030,882. The trade was a 4.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of the firm’s stock in a transaction 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 transaction, the director owned 5,207,271 shares in the company, valued at $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 three months, insiders have sold 1,901,125 shares of company stock valued at $410,583,015. 3.94% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On NVIDIA

A number of hedge funds have recently made changes to their positions in the stock. State Street Corp boosted its holdings in shares of NVIDIA by 1.2% in the 4th quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker’s stock valued at $184,911,111,000 after acquiring an additional 11,451,386 shares during the last quarter. Geode Capital Management LLC boosted its holdings in NVIDIA by 0.6% in the fourth quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker’s stock valued at $109,446,217,000 after purchasing an additional 3,383,441 shares during the last quarter. Norges Bank acquired a new stake in NVIDIA during the 4th quarter worth about $62,244,133,000. Bank of America Corp DE grew its position in NVIDIA by 2.2% during the 2nd quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker’s stock worth $39,090,956,000 after purchasing an additional 4,165,875 shares during the period. Finally, Legal & General Group Plc raised its stake in shares of NVIDIA by 1.5% during the 3rd quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker’s stock valued at $33,808,862,000 after buying an additional 2,609,560 shares during the last quarter. 65.27% of the stock is currently 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.