NVIDIA (NASDAQ:NVDA) Stock Price Down 2.4% – What’s Next?

NVIDIA Corporation (NASDAQ:NVDA) was down 2.4% during trading on Thursday . The stock traded as low as $217.20 and last traded at $218.36. Approximately 100,702,071 shares were traded 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.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA and Palantir launched a sovereign-AI stack for critical supply chains, initially deploying it across NVIDIA’s own manufacturing and logistics operations. The partnership could expand demand for NVIDIA’s chips, networking and software platform among industrial and government customers. NVIDIA and Palantir Bring Sovereign Intelligence to Critical Supply Chains
• Positive Sentiment: NVIDIA is working with Australian cloud and data-center partners on infrastructure that could support up to 2 gigawatts of AI capacity by 2027, strengthening its long-term position in regional AI computing. Nvidia Teams Up With Australian Partners to Build AI Factory Capacity
• Positive Sentiment: Chip startup d-Matrix plans to use NVIDIA’s chip-linking technology in its AI servers, while SolarEdge published an 800-volt data-center power framework with NVIDIA. These announcements support adoption of NVIDIA’s broader hardware and infrastructure ecosystem. Chip Startup d-Matrix to Use Nvidia Chip-Linking Technology
• Neutral Sentiment: CEO Jensen Huang identified cybersecurity as a potential next major AI application, suggesting opportunities beyond coding assistants. However, the comments are strategic rather than an immediate revenue catalyst. Nvidia CEO Says Cybersecurity Is AI’s Next Blockbuster App
• Neutral Sentiment: TSMC reported a 53.3% year-over-year revenue increase for August, confirming robust semiconductor and AI infrastructure demand. At the same time, higher manufacturing, memory and advanced-packaging costs could pressure chip designers’ margins.
• Negative Sentiment: The U.S. Department of Justice is reportedly investigating whether NVIDIA’s licensing deal with AI startup Groq was structured to avoid antitrust scrutiny. Regulatory uncertainty could increase legal costs and limit future deal flexibility. DOJ Probes Nvidia’s Licensing Deal With Groq
• Negative Sentiment: Director Mark Stevens has sold more than $235 million of NVIDIA shares in recent transactions, adding to concerns about insider profit-taking after the stock’s substantial rally. NVIDIA Director Sells 400,000 Shares
• Negative Sentiment: Investors are also comparing NVIDIA with Broadcom and AMD as rising yields compress technology valuations. Despite exceptional recent earnings growth, the stock’s premium valuation leaves it vulnerable to profit-taking and shifts in risk appetite.

Analyst Ratings Changes

NVDA has been the subject of a number of recent analyst reports. KeyCorp reiterated an “overweight” rating and issued a $330.00 price target on shares of NVIDIA in a research note on Monday, August 24th. Stifel Nicolaus set a $315.00 price objective on shares of NVIDIA in a research note on Thursday, August 27th. China Renaissance raised their target price on shares of NVIDIA from $319.00 to $330.00 and gave the company a “buy” rating in a research note on Monday, August 31st. Truist Financial boosted their price target on NVIDIA from $307.00 to $346.00 and gave the stock a “buy” rating in a research report on Thursday, August 27th. Finally, President Capital raised their price objective on NVIDIA from $295.00 to $330.00 in a research report on Thursday, August 27th. Two analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, NVIDIA has a consensus rating of “Moderate Buy” and a consensus price target of $324.34.

NVIDIA Stock Down 2.4%

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 has a market cap of $5.26 trillion, a P/E ratio of 27.61, a PEG ratio of 1.77 and a beta of 2.22. The firm has a 50-day simple moving average of $212.35 and a two-hundred day simple moving average of $203.02.

NVIDIA (NASDAQ:NVDA) last announced its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company had revenue of $96.22 billion during the quarter, compared to analysts’ expectations of $92.27 billion. During the same quarter in the previous year, the business posted $1.05 earnings per share. NVIDIA’s quarterly revenue was up 105.9% on a year-over-year basis. Equities research analysts expect that NVIDIA Corporation will post 9.1 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Thursday, September 10th. NVIDIA’s payout ratio is 12.64%.

NVIDIA announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in 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 typically an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In related news, EVP Timothy S. Teter sold 30,000 shares of the firm’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $217.88, for a total value of $6,536,400.00. Following the transaction, the executive vice president owned 2,687,660 shares in the company, valued at approximately $585,587,360.80. This trade represents a 1.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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 622,239 shares of the company’s stock in a transaction dated 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 sale, 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 position. The SEC filing for this sale provides additional information. Insiders have sold 2,585,740 shares of company stock worth $571,015,527 in the last three months. 3.94% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NVIDIA

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Lifetime Wealth Management P.C. bought a new stake in shares of 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. Montgomery Financial Services LLC acquired a new position in NVIDIA during the second quarter worth about $28,000. Longfellow Investment Management Co. LLC lifted its holdings in shares of NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after acquiring an additional 67 shares during the last quarter. Finally, Langley Wealth Management LLC acquired a new stake in shares of NVIDIA in the 2nd quarter valued at approximately $34,000. 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.