NVIDIA (NASDAQ:NVDA) Stock Price Down 1.2% – Should You Sell?

NVIDIA Corporation (NASDAQ:NVDA) shares were down 1.2% on Wednesday. The stock traded as low as $214.47 and last traded at $215.38. 89,765,552 shares changed hands during mid-day trading, a decline of 40% from the average session volume of 148,949,234 shares. The stock had previously closed at $217.94.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA will invest $3 billion in Meta’s equity offering while expanding its partnership on Meta’s Muse AI models. Meta also plans to deploy more NVIDIA Vera Rubin systems, Vera CPUs, Spectrum-X networking and BlueField-4 technology, reinforcing demand from one of NVIDIA’s largest customers. Nvidia, Meta partner on Muse agent as Nvidia invests $3 billion
• Positive Sentiment: NVIDIA and Oracle expanded the availability of Vera Rubin systems and CPUs on Oracle Cloud at multi-gigawatt scale, potentially broadening the company’s cloud infrastructure revenue opportunity. NVIDIA and Oracle Expand NVIDIA Vera Rubin
• Positive Sentiment: Continued demand indicators remain strong: analysts point to supply constraints, major hyperscaler infrastructure spending and an ongoing AI-compute shortage. NVIDIA also released an open-weight transcription model covering up to 40 languages, expanding its software and AI-model ecosystem. Nvidia releases new open transcription model
• Neutral Sentiment: NVIDIA scheduled its third-quarter financial-results conference call for November 17. Investors will focus on forward guidance, data-center demand, margins and supply constraints. NVIDIA Sets Conference Call for Third-Quarter Financial Results
• Negative Sentiment: The U.S. Department of Justice is examining NVIDIA’s proposed $12.93 billion acquisition of Hugging Face, creating potential regulatory delay or deal-completion risk. US DOJ examines Nvidia’s Hugging Face acquisition
• Negative Sentiment: Google’s TPUs are gaining distribution through Oracle Cloud, while OpenAI is reportedly purchasing Google’s custom chips. The developments could diversify customers away from NVIDIA GPUs and reduce NVIDIA’s pricing power over time. Google’s AI chip business is getting harder for Nvidia to ignore
• Negative Sentiment: TSMC reportedly plans to raise advanced-packaging prices by 10% to 20% and wafer prices by 3% to 6%, potentially pressuring NVIDIA’s costs and gross margins. A bearish analysis also cut its price target to $200, citing possible moderation in AI spending and future earnings revisions. Nvidia: Risk Building, Earnings Revisions Can Turn Negative

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on NVDA. DZ Bank reaffirmed a “buy” rating on shares of NVIDIA in a research note on Wednesday, August 26th. Wall Street Zen downgraded NVIDIA from a “strong-buy” rating to a “buy” rating in a research report on Saturday. Cantor Fitzgerald restated an “overweight” rating and set a $350.00 price target on shares of NVIDIA in a research note on Thursday, October 1st. Wells Fargo & Company set a $210.00 price objective on NVIDIA in a report on Friday, October 2nd. Finally, Yorkville Ives initiated coverage on NVIDIA in a research report on Tuesday, October 6th. They set an “outperform” rating and a $300.00 target price on the stock. Five equities research analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $321.47.

NVIDIA Price Performance

The firm has a market capitalization of $5.19 trillion, a PE ratio of 27.23, a P/E/G ratio of 1.62 and a beta of 2.22. The firm’s fifty day moving average price is $222.15 and its 200 day moving average price is $203.85. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The business 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 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, equities analysts forecast that NVIDIA Corporation will post 9.30 earnings per share for the current year.

NVIDIA Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 0.5%. The ex-dividend date was Thursday, September 10th. NVIDIA’s payout ratio is 12.64%.

NVIDIA declared that its Board of Directors has approved a share repurchase plan on Monday, September 28th that permits the company to repurchase $150 billion in outstanding shares. This buyback authorization permits the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Share buyback plans are usually a sign that the company’s board believes its shares are undervalued.

Insider Activity

In other news, CFO Colette Kress sold 34,918 shares of NVIDIA stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the sale, the chief financial officer owned 765,103 shares of the company’s stock, valued at approximately $167,595,812.15. The trade was a 4.36% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed 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 NVIDIA stock in a transaction on Friday, September 4th. The shares were sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the sale, the director owned 2,336,531 shares in the company, valued at $541,187,310.22. This represents a 21.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,766,118 shares of company stock worth $399,450,353 over the last three months. Insiders own 3.94% of the company’s stock.

Hedge Funds Weigh In On NVIDIA

Hedge funds and other institutional investors have recently bought and sold shares of the company. Intelligent Financial Strategies acquired a new stake in NVIDIA in the third quarter valued at approximately $26,000. Longview Financial Advisors Inc. purchased a new stake in shares of NVIDIA in the 1st quarter valued at approximately $27,000. Montgomery Financial Services LLC acquired a new stake in shares of NVIDIA in the 2nd quarter valued at $28,000. Langley Wealth Management LLC purchased a new stake in shares of NVIDIA during the 2nd quarter worth $34,000. Finally, Newton One Investments LLC purchased a new stake in shares of NVIDIA during the 3rd quarter worth $34,000. 65.27% of the stock is currently owned by hedge funds and other institutional investors.

NVIDIA Company Profile

NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.

The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.