NVIDIA (NASDAQ:NVDA) Shares Down 1.6% – Here’s Why

NVIDIA Corporation (NASDAQ:NVDA) shares traded down 1.6% on Friday . The stock traded as low as $191.22 and last traded at $192.53. 174,420,872 shares changed hands during trading, an increase of 2% from the average session volume of 170,329,766 shares. The stock had previously closed at $195.74.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA continues to be viewed as a core AI infrastructure winner, with articles highlighting strong demand for Blackwell-powered systems, AWS partnership momentum, and expanding data-center opportunities that support long-term growth. NVIDIA (NVDA), AWS (AMZN) Partner to Boost Production-Scale AI with Blackwell-Powered Instances
• Positive Sentiment: Several pieces argue the stock may still have upside because revenue growth remains strong, margins are high, and AI infrastructure spending is expected to keep expanding through 2026 and beyond. How Much Upside Can NVDA Stock’s Growth Deliver?
• Neutral Sentiment: Some commentary suggests the market is simply reassessing whether NVIDIA still deserves to be the single best AI trade as investors broaden exposure to related themes like memory chips, custom silicon, and AI infrastructure providers.
• Neutral Sentiment: There is also renewed discussion about competition from companies building their own chips, which could cap valuation multiples even if NVIDIA remains the dominant supplier. Why everyone from OpenAI to SpaceX is building their own chips (and turning up the heat on Nvidia)
• Negative Sentiment: Broader tech weakness is weighing on NVDA, with the Nasdaq slumping amid a global AI/tech sell-off and reports that “hot money” is moving elsewhere. Stock Market Today: Small Caps Edge Lower As Dow Goes Flat; Heavy Construction Play Surges (Live Coverage)
• Negative Sentiment: Analysts and market commentary note that NVIDIA is no longer the only obvious AI winner, with some investors rotating into Micron, Qualcomm, and other AI beneficiaries, which is creating near-term selling pressure on NVDA.

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. HSBC reissued a “buy” rating and set a $325.00 price target (up from $295.00) on shares of NVIDIA in a research report on Tuesday, May 19th. New Street Research decreased their price objective on NVIDIA from $343.00 to $340.00 in a report on Thursday, May 21st. Citigroup began coverage on NVIDIA in a research report on Wednesday, April 15th. They issued a “buy” rating on the stock. Seaport Research Partners upped their target price on NVIDIA from $140.00 to $180.00 and gave the stock a “sell” rating in a report on Thursday, May 21st. Finally, Argus increased their price objective on NVIDIA from $220.00 to $270.00 and gave the company a “buy” rating in a report on Thursday, May 21st. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Buy” and an average price target of $303.84.

NVIDIA Stock Down 1.6%

The firm has a market cap of $4.66 trillion, a P/E ratio of 29.48, a P/E/G ratio of 0.44 and a beta of 2.22. 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 firm’s fifty day moving average is $210.79 and its 200 day moving average is $193.00.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company had revenue of $81.61 billion during the quarter, compared to analysts’ expectations of $78.42 billion. During the same quarter in the previous year, the company posted $0.81 earnings per share. The business’s revenue was up 85.2% on a year-over-year basis. As a group, equities research analysts anticipate that NVIDIA Corporation will post 8.69 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be issued a $0.25 dividend. The ex-dividend date of this dividend is Thursday, June 4th. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s payout ratio is presently 15.31%.

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

Insiders Place Their Bets

In other news, Director John Dabiri sold 625 shares of the firm’s 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 transaction, the director directly owned 14,163 shares of the company’s stock, valued at approximately $3,030,882. This trade represents a 4.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the completion of the transaction, the director directly owned 5,207,271 shares in the company, valued at $1,094,412,146.07. This trade represents a 14.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,901,125 shares of company stock worth $410,583,015 in the last quarter. Corporate insiders own 3.94% of the company’s stock.

Hedge Funds Weigh In On NVIDIA

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Diversified Enterprises LLC lifted its stake in NVIDIA by 44.2% in the fourth quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker’s stock worth $23,798,000 after purchasing an additional 39,129 shares during the last quarter. ASR Vermogensbeheer N.V. boosted its holdings in NVIDIA by 1.8% during the 4th quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker’s stock valued at $591,086,000 after acquiring an additional 54,877 shares during the period. PMG Family Office LLC bought a new position in NVIDIA during the 3rd quarter worth approximately $2,150,000. Storen Legacy Partners LLC bought a new stake in NVIDIA in the fourth quarter valued at approximately $1,350,000. Finally, Weaver Capital Management LLC boosted its stake in shares of NVIDIA by 5.5% during the fourth quarter. Weaver Capital Management LLC now owns 85,216 shares of the computer hardware maker’s stock valued at $15,893,000 after purchasing an additional 4,439 shares during the period. 65.27% of the stock is currently owned by institutional investors and hedge funds.

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.