NVIDIA (NASDAQ:NVDA) Shares Down 5.5% – Here’s What Happened

Shares of NVIDIA Corporation (NASDAQ:NVDA) traded down 5.5% on Thursday . The stock traded as low as $184.32 and last traded at $184.89. 357,572,255 shares changed hands during trading, an increase of 102% from the average session volume of 176,840,078 shares. The stock had previously closed at $195.56.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Blowout quarter and aggressive guidance. NVDA posted record Q4 revenue and EPS and guided Q1 well above Street expectations, driven by Blackwell/Rubin demand and hyperscaler capex — this is the core bullish case for sustained cash flow and margin expansion. Read More.
• Positive Sentiment: Heavy analyst support and price?target upgrades. Multiple brokers raised price targets and reiterated buy/outperform ratings after the print (RBC, Bernstein, Truist, Baird, Bank of America), which supports upside over the medium term. Read More.
• Neutral Sentiment: China shipments: incremental progress, limited revenue so far. NVDA got limited approvals/licenses to ship some H200 chips to China but management says it hasn’t yet recognized revenue there — this reduces one tailwind until scale is proven. Read More.
• Neutral Sentiment: Supply dynamics: gaming GPU shortage to persist. Nvidia expects gaming?GPU shortages through year?end; for investors this is mixed — it may maintain pricing and margins but limits gaming revenue growth. Read More.
• Negative Sentiment: Stock fell despite the beat — investor expectations and rotation. Many traders sold into the strength: the quarter cleared estimates but investors were “left wanting more” on cadence, sustainability and margin cadence; that profit?taking and rotation into other names pressured the share price. Read More.
• Negative Sentiment: Concerns about long?term sustainability, competition and valuation. Media and investors flag risks: hyperscaler capex normalization, rising competition (AMD, Google, Broadcom moves), heavy insider selling and premium multiples — all amplify sensitivity to any slower growth signals. Read More.
• Negative Sentiment: High trading volume and cautious market tone. Volume is elevated and the broader AI/tech trade is volatile — even strong fundamentals can trigger sharp swings when sentiment turns cautious. Read More.

Wall Street Analyst Weigh In

Several brokerages recently commented on NVDA. Evercore reiterated an “outperform” rating on shares of NVIDIA in a report on Tuesday, January 6th. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of NVIDIA in a research note on Monday. Fundamental Research set a $218.00 price objective on shares of NVIDIA in a research report on Thursday. HSBC set a $310.00 target price on NVIDIA in a research report on Tuesday. Finally, Barclays reissued a “buy” rating on shares of NVIDIA in a report on Thursday. Three analysts have rated the stock with a Strong Buy rating, forty-seven have assigned a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, NVIDIA currently has a consensus rating of “Buy” and a consensus target price of $271.58.

NVIDIA Stock Performance

The company has a debt-to-equity ratio of 0.06, a current ratio of 4.47 and a quick ratio of 3.71. The company has a market capitalization of $4.49 trillion, a price-to-earnings ratio of 45.88, a PEG ratio of 0.58 and a beta of 2.31. The firm’s fifty day simple moving average is $186.30 and its 200 day simple moving average is $183.88.

NVIDIA (NASDAQ:NVDA) last posted its earnings results on Wednesday, February 25th. The computer hardware maker reported $1.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.54 by $0.08. The firm had revenue of $68.13 billion during the quarter, compared to analysts’ expectations of $65.56 billion. NVIDIA had a net margin of 53.01% and a return on equity of 99.24%. The company’s revenue was up 73.2% compared to the same quarter last year. During the same period in the previous year, the company earned $0.89 earnings per share. On average, sell-side analysts forecast that NVIDIA Corporation will post 2.77 EPS for the current year.

NVIDIA Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Wednesday, March 11th will be issued a dividend of $0.01 per share. The ex-dividend date of this dividend is Wednesday, March 11th. This represents a $0.04 annualized dividend and a yield of 0.0%. NVIDIA’s dividend payout ratio is currently 0.99%.

Insider Transactions at NVIDIA

In related news, EVP Ajay K. Puri sold 200,000 shares of the company’s stock in a transaction dated Wednesday, January 21st. The stock was sold at an average price of $180.04, for a total value of $36,008,000.00. Following the completion of the sale, the executive vice president owned 3,618,547 shares in the company, valued at approximately $651,483,201.88. This represents a 5.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CFO Colette Kress sold 20,000 shares of the firm’s stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $175.72, for a total value of $3,514,400.00. Following the transaction, the chief financial officer owned 93,060 shares in the company, valued at approximately $16,352,503.20. This trade represents a 17.69% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 1,610,848 shares of company stock worth $291,619,375. Insiders own 4.17% of the company’s stock.

Hedge Funds Weigh In On NVIDIA

Large investors have recently modified their holdings of the business. Norges Bank bought a new stake in NVIDIA in the fourth quarter worth approximately $62,244,133,000. J. Stern & Co. LLP raised its stake in shares of NVIDIA by 13,709.1% during the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock worth $23,454,297,000 after purchasing an additional 124,849,603 shares during the period. Cardano Risk Management B.V. grew its stake in shares of NVIDIA by 896.4% during the 4th quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker’s stock worth $14,570,119,000 after acquiring an additional 70,283,539 shares during the period. Capital Research Global Investors grew its stake in NVIDIA by 16.1% in the 3rd quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker’s stock valued at $30,855,564,000 after buying an additional 22,896,705 shares in the last quarter. Finally, Laurel Wealth Advisors LLC boosted its position in shares of NVIDIA by 15,496.1% in the second quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker’s stock valued at $3,454,534,000 after acquiring an additional 21,725,326 shares during the period. 65.27% of the stock is currently owned by institutional investors and hedge funds.

NVIDIA Company Profile

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.