NVIDIA (NASDAQ:NVDA) Trading Down 2% – Here’s Why

NVIDIA Corporation (NASDAQ:NVDA) shares traded down 2% during trading on Tuesday . The company traded as low as $224.85 and last traded at $225.73. 118,663,629 shares traded hands during trading, a decline of 25% from the average session volume of 158,553,531 shares. The stock had previously closed at $230.36.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s recent quarterly results remain the key bullish backdrop: revenue reached $96.2 billion, up 106% year over year, while management indicated roughly 70% revenue growth could continue into fiscal 2028. Strong Data Center demand and upcoming Blackwell and Vera Rubin product ramps support earnings visibility. NVIDIA earnings and outlook
• Positive Sentiment: OpenAI’s GPT-6 Astra was reportedly trained on more than 100,000 NVIDIA Grace Blackwell systems, reinforcing NVIDIA’s role in frontier-model development and potentially supporting additional infrastructure demand. OpenAI GPT-6 Astra and NVIDIA
• Positive Sentiment: CEO Jensen Huang described NVIDIA’s computing systems as durable, rentable, revenue-generating assets. Reports that older H100 GPUs continue to command meaningful rental rates could ease concerns about rapid hardware obsolescence. NVIDIA chip rental demand
• Positive Sentiment: The proposed $12.9 billion acquisition of Hugging Face could expand NVIDIA’s software, developer and open-source AI ecosystem, strengthening its full-stack platform beyond hardware. NVIDIA Hugging Face acquisition
• Neutral Sentiment: Analysts and commentators continue to raise price targets and identify further upside from AI infrastructure expansion, but these views are largely expectations rather than new company guidance.
• Negative Sentiment: Investors remain concerned that hyperscalers may increasingly use custom accelerators from companies such as Broadcom, while older NVIDIA hardware could eventually compete with new products. Broadcom custom AI chip competition
• Negative Sentiment: Risks surrounding the Hugging Face deal include the possibility that developers or open-source contributors resist NVIDIA ownership, limiting the acquisition’s strategic value. Hugging Face acquisition risk
• Negative Sentiment: Large insider selling, supplier financing needs and growing opposition to AI data-center construction add caution around valuation, supply-chain sustainability and the pace of future infrastructure spending.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the stock. Wedbush upped their price target on shares of NVIDIA from $330.00 to $345.00 and gave the stock an “outperform” rating in a report on Thursday, August 27th. Raymond James Financial set a $515.00 price target on shares of NVIDIA and gave the company a “strong-buy” rating in a research note on Thursday, August 27th. Bank of America restated a “buy” rating and set a $350.00 price objective (up from $320.00) on shares of NVIDIA in a report on Thursday, May 21st. Zacks Research cut NVIDIA from a “strong-buy” rating to a “hold” rating in a report on Friday, August 21st. Finally, KeyCorp restated an “overweight” rating and issued a $330.00 price objective on shares of NVIDIA in a report on Monday, August 24th. Two equities research analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $324.83.

NVIDIA Price Performance

The company has a market cap of $5.44 trillion, a PE ratio of 28.54, a PEG ratio of 1.81 and a beta of 2.22. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The stock’s 50-day moving average is $211.32 and its 200 day moving average is $202.51.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 for the quarter, compared to the consensus estimate of $92.27 billion. During the same period in the prior year, the firm posted $1.05 earnings per share. The business’s quarterly revenue was up 105.9% on a year-over-year basis. On average, equities analysts anticipate that NVIDIA Corporation will post 9.1 earnings per share for the current fiscal year.

NVIDIA Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be paid a $0.25 dividend. The ex-dividend date is Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. NVIDIA’s dividend payout ratio (DPR) is 12.64%.

NVIDIA announced that its board has approved a share repurchase 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 purchase up to 1.5% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board believes its stock is undervalued.

Insider Transactions at NVIDIA

In related news, EVP Timothy S. Teter sold 30,000 shares of NVIDIA stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $217.88, for a total value of $6,536,400.00. Following the completion of the sale, the executive vice president directly owned 2,687,660 shares in the company, valued at $585,587,360.80. This trade represents a 1.10% decrease in their position. The transaction 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, Director Mark A. Stevens sold 63,501 shares of the business’s stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $220.06, for a total transaction of $13,974,030.06. Following the sale, the director directly owned 4,558,770 shares in the company, valued at approximately $1,003,202,926.20. This represents a 1.37% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 1,563,501 shares of company stock worth $335,380,530 in the last 90 days. Insiders own 3.94% of the company’s stock.

Hedge Funds Weigh In On NVIDIA

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Boyd Wealth Management LLC grew its holdings in shares of NVIDIA by 273.4% in the second quarter. Boyd Wealth Management LLC now owns 9,145 shares of the computer hardware maker’s stock valued at $1,830,000 after purchasing an additional 6,696 shares during the period. Diversified Enterprises LLC raised its stake in 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 period. Altshuler Shaham Ltd boosted its holdings in NVIDIA by 6,451.9% in the 1st quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker’s stock valued at $111,134,000 after purchasing an additional 627,510 shares during the last quarter. ASR Vermogensbeheer N.V. grew its stake in shares of NVIDIA by 1.8% in 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 buying an additional 54,877 shares during the period. Finally, Storen Legacy Partners LLC purchased a new stake in shares of NVIDIA in the 4th quarter valued at approximately $1,350,000. Hedge funds and other institutional investors own 65.27% of the company’s stock.

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.