NVIDIA (NASDAQ:NVDA) Trading Down 1.3% – Time to Sell?
by Danessa Lincoln · The Markets DailyNVIDIA Corporation (NASDAQ:NVDA – Get Free Report)’s share price traded down 1.3% during mid-day trading on Wednesday . The stock traded as low as $203.08 and last traded at $204.65. 125,947,335 shares changed hands during trading, a decline of 26% from the average session volume of 170,679,078 shares. The stock had previously closed at $207.41.
Key Headlines Impacting NVIDIA
Here are the key news stories impacting NVIDIA this week:
- Positive Sentiment: CEO Jensen Huang said AI could help revive U.S. manufacturing, reinforcing the view that NVIDIA’s chips and platforms remain central to the next wave of industrial and AI investment. Article: Nvidia’s Huang pledges AI will boost manufacturing jobs. A test will come in Texas
- Positive Sentiment: NVIDIA-backed SandboxAQ received a $500 million U.S. government award to develop new semiconductor materials, highlighting NVIDIA’s ecosystem reach and the strategic importance of domestic chip supply chains. Article: US awards $500 million to Nvidia-backed SandboxAQ for finding new chipmaking materials
- Positive Sentiment: Multiple headlines emphasized continued AI demand and upbeat analyst/industry commentary, including bullish views on NVIDIA’s next product cycle and ongoing partnerships in AI infrastructure. Article: Can Nvidia Stock Reach $743 in the Next 12 Months?
- Neutral Sentiment: NVIDIA’s recent $25 billion bond sale and broader debt financing discussion suggest the company is still funding a massive AI buildout, which can support growth but also raises questions about capital intensity and funding discipline. Article: Nvidia plans to raise about $20 billion in first debt sale since start of AI boom
- Neutral Sentiment: NVIDIA also received some offsetting support from China-trade reprieve headlines and new partnerships, but these items mainly reinforce existing demand rather than changing the near-term earnings outlook. Article: Nvidia Gets a China Trade Reprieve
- Negative Sentiment: Short-seller Jim Chanos warned that the AI capex boom looks similar to the dot-com/telecom bubble, adding to concerns that AI infrastructure spending may not be sustainable at current levels. Article: Legendary Short Seller Jim Chanos Issues Dire Prediction
- Negative Sentiment: Several reports said NVIDIA stock is lagging the broader semiconductor group as customers face pressure to spend more efficiently, which can weigh on near-term sentiment. Article: Nvidia Stock Braced for AI Funding Squeeze
Analysts Set New Price Targets
Several equities research analysts have recently issued reports on the company. Needham & Company LLC reaffirmed a “buy” rating and set a $270.00 target price on shares of NVIDIA in a research report on Tuesday, June 2nd. Oppenheimer reaffirmed an “outperform” rating and set a $265.00 target price on shares of NVIDIA in a research report on Thursday, February 26th. Zacks Research downgraded NVIDIA from a “strong-buy” rating to a “hold” rating in a research note on Thursday, May 21st. Wells Fargo & Company reiterated an “overweight” rating and set a $315.00 price target (up from $265.00) on shares of NVIDIA in a research note on Tuesday, May 12th. Finally, BNP Paribas Exane raised their target price on NVIDIA from $270.00 to $285.00 and gave the stock an “outperform” rating in a research note 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, the stock presently has an average rating of “Buy” and an average price target of $305.67.
Get Our Latest Analysis on NVIDIA
NVIDIA Trading Down 1.3%
The firm has a 50 day simple moving average of $208.14 and a 200 day simple moving average of $191.84. 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 has a market cap of $4.95 trillion, a P/E ratio of 31.34, a P/E/G ratio of 0.47 and a beta of 2.22.
NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping the consensus estimate 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 during the quarter, compared to the consensus estimate of $78.42 billion. During the same quarter last year, the company earned $0.81 EPS. The firm’s revenue was up 85.2% compared to the same quarter last year. On average, equities research analysts predict that NVIDIA Corporation will post 8.65 EPS for the current fiscal year.
NVIDIA Increases Dividend
The firm also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Thursday, June 4th will be given a dividend of $0.25 per share. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. The ex-dividend date is Thursday, June 4th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. NVIDIA’s dividend payout ratio is 15.31%.
NVIDIA announced that its Board of Directors has initiated a share buyback plan on Wednesday, May 20th that allows the company to buyback $80.00 billion in shares. This buyback authorization allows the computer hardware maker to reacquire up to 1.5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its stock is undervalued.
Insider Activity
In other news, CFO Colette Kress sold 20,000 shares of NVIDIA stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $174.89, for a total transaction of $3,497,800.00. Following the completion of the sale, the chief financial officer owned 83,060 shares in the company, valued at approximately $14,526,363.40. This trade represents a 19.41% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Aarti S. Shah sold 19,000 shares of NVIDIA stock in a transaction dated Thursday, March 19th. The shares were sold at an average price of $176.71, for a total value of $3,357,490.00. Following the sale, the director owned 36,007 shares of the company’s stock, valued at approximately $6,362,796.97. This trade represents a 34.54% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 1,319,457 shares of company stock worth $277,398,643. Company insiders own 3.94% of the company’s stock.
Institutional Trading of NVIDIA
A number of large investors have recently modified their holdings of the business. State Street Corp boosted its position in shares of NVIDIA by 1.2% during the 4th quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker’s stock valued at $184,911,111,000 after acquiring an additional 11,451,386 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of NVIDIA by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker’s stock valued at $109,446,217,000 after buying an additional 3,383,441 shares in the last quarter. Norges Bank purchased a new position in shares of NVIDIA during the 4th quarter valued at about $62,244,133,000. Bank of America Corp DE raised its holdings in shares of NVIDIA by 2.1% during the 1st quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker’s stock valued at $33,345,453,000 after buying an additional 4,019,505 shares in the last quarter. Finally, Legal & General Group Plc raised its holdings in shares of NVIDIA by 1.5% during the 3rd quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker’s stock valued at $33,808,862,000 after buying an additional 2,609,560 shares in the last quarter. Institutional investors own 65.27% of the company’s stock.
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.