NVIDIA (NASDAQ:NVDA) Stock Falls 2.9% – What’s Next?

NVIDIA Corporation (NASDAQ:NVDA) fell 2.9% during mid-day trading on Thursday. The company traded as low as $229.85 and last traded at $230.48. 114,270,318 shares changed hands during trading, a decline of 25% from the average daily volume of 152,876,109 shares. The stock had previously closed at $237.47.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA committed $1 billion over five years to advance U.S. scientific research in areas including quantum computing, healthcare and energy security. The announcement was part of a broader $2.4 billion technology-industry commitment to support federal AI research. NVIDIA Commits $1 Billion to Advance US Science
• Positive Sentiment: SpaceX is reportedly seeking approximately $40 billion in debt financing to purchase NVIDIA GPUs for its AI buildout. If completed, the deal would represent substantial potential demand, although the financing remains under discussion. Apollo, banks in talks to finance SpaceX’s Nvidia GPU purchase
• Positive Sentiment: Microsoft and multiple PC manufacturers unveiled or began taking preorders for AI-focused systems using NVIDIA’s RTX Spark chips, expanding the company’s opportunity beyond data centers into local and enterprise computing. Microsoft to sell Surface Laptop Ultra containing Nvidia AI chip
• Positive Sentiment: BNP Paribas Exane upgraded NVIDIA to “strong buy,” while several reports cited optimistic analyst targets and sustained AI demand. TSMC’s quarterly revenue also rose 50% year over year, reinforcing demand for advanced AI processors. NVIDIA Stock Lifted to Strong-Buy by BNP Paribas Exane
• Neutral Sentiment: NVIDIA is increasingly financing or backstopping AI infrastructure projects. This could stimulate GPU sales and strengthen its ecosystem, but it also exposes the company to customer-credit and residual-value risks if AI spending or hardware utilization weakens. Nvidia: AI’s Lender of Last Resort
• Negative Sentiment: AI stocks sold off after CNBC reported that OpenAI’s annualized revenue was approximately $50 billion at the end of September—below the $68 billion figure widely circulated previously. The revision raised concerns about AI monetization and the sustainability of aggressive infrastructure spending. Nvidia, Oracle, CoreWeave and other AI stocks sink on OpenAI revenue report
• Negative Sentiment: Demand concerns were reinforced by reports of sharply weaker appetite for an NVIDIA-backed data-center company’s IPO, suggesting that AI funding conditions may be becoming more selective. Investors are also monitoring competition from open Ethernet networking platforms that could challenge NVIDIA’s proprietary InfiniBand advantage.

Analyst Upgrades and Downgrades

NVDA has been the topic of a number of recent analyst reports. Rosenblatt Securities reissued a “buy” rating and set a $390.00 price target on shares of NVIDIA in a research report on Tuesday, September 29th. BMO Capital Markets set a $340.00 target price on NVIDIA and gave the stock an “outperform” rating in a report on Thursday, August 20th. KGI Securities raised their price target on NVIDIA from $335.00 to $345.00 in a research report on Thursday, August 27th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of NVIDIA in a report on Monday, August 31st. Finally, Jefferies Financial Group reissued a “buy” rating on shares of NVIDIA in a research note on Wednesday, August 26th. Five analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus price target of $321.89.

NVIDIA Trading Down 2.9%

The firm has a market cap of $5.55 trillion, a P/E ratio of 29.14, a P/E/G ratio of 1.85 and a beta of 2.22. The business’s 50-day moving average is $221.38 and its two-hundred day moving average is $208.88. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The firm had revenue of $96.22 billion for the quarter, compared to analysts’ expectations of $92.27 billion. During the same period in the previous year, the firm posted $1.05 EPS. The company’s revenue for the quarter was up 105.9% on a year-over-year basis. As a group, analysts predict that NVIDIA Corporation will post 9.25 earnings per share for the current fiscal year.

NVIDIA Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were given a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 0.4%. The ex-dividend date was Thursday, September 10th. NVIDIA’s dividend payout ratio is 12.64%.

NVIDIA declared that its board has initiated a stock buyback plan on Monday, September 28th that allows the company to buyback $150.00 billion in shares. This buyback authorization allows the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling at NVIDIA

In related news, EVP Timothy S. Teter sold 30,460 shares of NVIDIA stock in a transaction on Monday, September 21st. The shares were sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the completion of the transaction, the executive vice president owned 2,687,660 shares of the company’s stock, valued at $598,810,648. This trade represents a 1.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the sale, the director owned 2,336,531 shares of the company’s stock, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Insiders own 3.94% of the company’s stock.

Institutional Investors Weigh In On NVIDIA

Several institutional investors and hedge funds have recently made changes to their positions in NVDA. State Street Corp boosted its holdings in shares of NVIDIA by 1.6% during the 2nd quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker’s stock worth $202,047,568,000 after buying an additional 15,897,836 shares in the last quarter. Bank of America Corp DE boosted its stake in NVIDIA by 2.2% during the second 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 acquiring an additional 4,165,875 shares in the last quarter. Invesco Ltd. grew its holdings in NVIDIA by 0.3% in the fourth quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker’s stock worth $26,714,167,000 after purchasing an additional 446,178 shares during the period. Amundi grew its holdings in NVIDIA by 10.4% in the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after purchasing an additional 12,575,177 shares during the period. Finally, J. Stern & Co. LLP increased its stake in NVIDIA by 13,709.1% in the fourth quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock valued at $23,454,297,000 after purchasing an additional 124,849,603 shares in the last quarter. Institutional investors own 65.27% of the company’s stock.

NVIDIA Company Profile

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.