NVIDIA (NASDAQ:NVDA) Stock Falls 1.8% – Time to Sell?

NVIDIA Corporation (NASDAQ:NVDA)’s stock price dropped 1.8% on Thursday. The company traded as low as $212.85 and last traded at $217.23. 125,481,148 shares changed hands during trading, a decline of 17% from the average session volume of 151,482,672 shares. The stock had previously closed at $221.30.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: New RTX Spark laptops expand NVIDIA’s addressable market. Systems from ASUS, Dell, HP, Lenovo, Microsoft and MSI are now available starting at $2,599, combining Blackwell graphics, up to 128GB of memory and local AI capabilities. The launch could create a new consumer and developer revenue stream beyond data centers. NVIDIA RTX Spark PCs Available Today
• Positive Sentiment: Automotive and enterprise adoption continues. Volvo expanded its partnership with NVIDIA for automated-driving systems, while Adobe is integrating NVIDIA technology across Photoshop, Premiere and other creative tools. These agreements support longer-term demand for NVIDIA hardware and software. Volvo Cars expands automated driving partnership
• Positive Sentiment: Supply-chain investment and customer deployments remain strong. Taiwan is reportedly considering as much as $4 billion for Texas industrial parks serving NVIDIA suppliers, and customers continue deploying Blackwell systems. The developments reinforce demand, although they may take time to affect revenue. Taiwan Texas industrial parks
• Neutral Sentiment: NVIDIA is broadening its software and AI-model ecosystem. Paid offerings such as AI Enterprise and Mission Control, along with Nemotron open models and partnerships with AI startups, could make earnings less dependent on hardware. However, the articles provide no near-term financial contribution.
• Negative Sentiment: AI financing concerns are the main pressure. CoreWeave’s debt has reportedly traded at distressed yields, raising questions about whether highly leveraged customers can continue funding data-center expansion. Higher Treasury yields and inflation concerns are also making large AI projects more expensive. CoreWeave financing worries
• Negative Sentiment: Investors are questioning AI growth expectations. OpenAI’s reported $50 billion revenue run rate was below the roughly $68 billion previously anticipated, prompting concern that AI demand may mature more slowly. Microsoft’s development of custom Maia chips also highlights the risk of customers developing alternatives to NVIDIA GPUs. OpenAI revenue expectations
• Negative Sentiment: Reported insider selling adds a sentiment overhang. Recent data showed NVIDIA insiders made numerous sales and no open-market purchases over the past six months, though such transactions may reflect planned diversification rather than a change in business outlook.

Analysts Set New Price Targets

Several research firms have issued reports on NVDA. Mizuho set a $315.00 price target on shares of NVIDIA and gave the stock an “outperform” rating in a report on Thursday, August 27th. Piper Sandler started coverage on shares of NVIDIA in a research note on Wednesday, September 9th. They issued an “overweight” rating and a $300.00 price objective on the stock. Citigroup reiterated a “buy” rating and set a $315.00 price objective (up from $300.00) on shares of NVIDIA in a research report on Thursday, August 27th. TD Cowen reiterated a “buy” rating on shares of NVIDIA in a research report on Tuesday, August 18th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of NVIDIA in a research note on Monday, August 31st. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Buy” and a consensus price target of $321.89.

NVIDIA Stock Performance

The stock has a market capitalization of $5.16 trillion, a price-to-earnings ratio of 27.07, a price-to-earnings-growth ratio of 1.67 and a beta of 2.22. The company has a 50 day simple moving average of $223.20 and a 200-day simple moving average of $211.10. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings data 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. The company had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company’s quarterly revenue was up 105.9% on a year-over-year basis. During the same quarter last year, the firm posted $1.05 EPS. As a group, equities research analysts expect that NVIDIA Corporation will post 9.27 EPS for the current fiscal year.

NVIDIA Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date was Thursday, September 10th. NVIDIA’s dividend payout ratio (DPR) is presently 12.64%.

NVIDIA announced that its board has authorized a stock repurchase plan on Monday, September 28th that authorizes the company to repurchase $150.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to buy up to 2.8% of its shares through open market purchases. Share repurchase plans are often an indication that the company’s board believes its stock is undervalued.

Insider Buying and Selling at NVIDIA

In related news, CFO Colette Kress sold 34,918 shares of the stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total value of $7,648,787.90. Following the transaction, the chief financial officer directly owned 765,103 shares in the company, valued at $167,595,812.15. This trade represents a 4.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy S. Teter sold 30,460 shares of the firm’s 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 directly owned 2,687,660 shares in the company, valued at $598,810,648. This trade represents a 1.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 1,766,118 shares of company stock valued at $399,450,353. Corporate insiders own 3.94% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. State Street Corp lifted its position in NVIDIA by 1.6% during the second quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker’s stock valued at $202,047,568,000 after purchasing an additional 15,897,836 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of 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 valued at $39,090,956,000 after acquiring an additional 4,165,875 shares in the last quarter. Invesco Ltd. lifted its position in shares of NVIDIA by 0.3% in the 4th 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 lifted 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 buying an additional 12,575,177 shares during the period. Finally, Dimensional Fund Advisors LP grew its holdings in shares of NVIDIA by 0.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker’s stock worth $16,479,126,000 after acquiring an additional 555,221 shares during the period. 65.27% of the stock is currently owned by hedge funds and other institutional investors.

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.