NVIDIA (NASDAQ:NVDA) Stock Price Down 3.7% – Here’s What Happened

Shares of NVIDIA Corporation (NASDAQ:NVDA) dropped 3.7% during mid-day trading on Wednesday . The stock traded as low as $199.92 and last traded at $200.42. Approximately 157,116,683 shares changed hands during mid-day trading, a decline of 9% from the average daily volume of 172,283,188 shares. The stock had previously closed at $208.19.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: DA Davidson said NVIDIA’s profit margins look relatively safe through 2030, reinforcing the view that the company’s earnings power can stay strong even as competition and capex rise.
• Positive Sentiment: Reuters reported that OpenAI is weighing a 10-gigawatt Ohio data center lease that could include NVIDIA backing, which would further validate demand for NVIDIA’s AI infrastructure ecosystem.
• Positive Sentiment: Multiple outlets highlighted new and expanding partnerships in South Korea, including collaboration plans with SK Group and continued efforts to secure HBM memory supply for next-gen Rubin chips, which supports NVIDIA’s supply chain and future production capacity.
• Positive Sentiment: Commentary from Jim Cramer, analysts, and bullish research pieces continued to frame NVIDIA as the key AI leader, with strong demand, robust Blackwell ramp expectations, and favorable analyst sentiment.
• Neutral Sentiment: Several articles emphasized that NVIDIA remains central to the AI trade, but also noted growing investor interest in alternative beneficiaries such as Micron, Intel, and other “next wave” AI infrastructure names.
• Negative Sentiment: The immediate drag on NVDA is the sector-wide chip rout: Broadcom, AMD, and other semiconductor names also fell sharply, and NVIDIA was hit as part of that broader de-risking move.
• Negative Sentiment: Some articles raised valuation and positioning concerns, including mentions of billionaire/institutional selling and skepticism that the stock’s recent dominance can continue without pauses or rotation.

Analyst Ratings Changes

NVDA has been the topic of several research analyst reports. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a $255.00 price objective (up from $220.00) on shares of NVIDIA in a report on Thursday, May 21st. Cantor Fitzgerald restated an “overweight” rating and set a $350.00 price target on shares of NVIDIA in a report on Thursday, May 21st. Morgan Stanley set a $288.00 price target on NVIDIA and gave the stock an “overweight” rating in a report on Thursday, May 21st. Fundamental Research set a $218.00 price target on NVIDIA in a report on Thursday, February 26th. Finally, Royal Bank Of Canada set a $280.00 price target on NVIDIA 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 company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Buy” and an average target price of $305.67.

NVIDIA Trading Down 3.7%

The firm has a market cap of $4.85 trillion, a PE ratio of 30.69, a P/E/G ratio of 0.47 and a beta of 2.22. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. The business has a fifty day moving average price of $204.93 and a 200 day moving average price of $190.93.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating 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 business had revenue of $81.62 billion for the quarter, compared to the consensus estimate of $78.42 billion. During the same quarter in the prior year, the business posted $0.81 EPS. The business’s revenue for the quarter was up 85.2% on a year-over-year basis. Analysts forecast that NVIDIA Corporation will post 8.61 EPS for the current year.

NVIDIA Increases Dividend

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

NVIDIA announced that its Board of Directors has initiated a share repurchase plan on Wednesday, May 20th that permits the company to repurchase $80.00 billion in shares. This repurchase authorization permits the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.

Insider Transactions at NVIDIA

In related news, CFO Colette Kress sold 20,000 shares of the company’s stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $174.89, for a total value of $3,497,800.00. Following the completion of the sale, the chief financial officer directly owned 83,060 shares of the company’s stock, valued at $14,526,363.40. This represents a 19.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Stephen C. Neal sold 15,500 shares of the company’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total value of $3,343,815.00. Following the completion of the sale, the director directly owned 116,135 shares of the company’s stock, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 1,622,461 shares of company stock worth $332,629,083. Insiders own 3.94% of the company’s stock.

Institutional Trading of NVIDIA

A number of hedge funds have recently added to or reduced their stakes in NVDA. Diversified Enterprises LLC boosted its holdings in shares of NVIDIA by 44.2% during 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. PMG Family Office LLC acquired a new stake in shares of NVIDIA during the third quarter worth $2,150,000. ASR Vermogensbeheer N.V. boosted its holdings in shares of NVIDIA by 1.8% during the fourth quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker’s stock worth $591,086,000 after purchasing an additional 54,877 shares during the last quarter. Weaver Capital Management LLC boosted its holdings 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 worth $15,893,000 after purchasing an additional 4,439 shares during the last quarter. Finally, Circle Wealth Management LLC boosted its holdings in shares of NVIDIA by 16.1% during the third quarter. Circle Wealth Management LLC now owns 107,787 shares of the computer hardware maker’s stock worth $20,111,000 after purchasing an additional 14,936 shares during the last quarter. 65.27% of the stock is 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.