NVIDIA (NASDAQ:NVDA) Shares Down 1.1% - Time to Sell?

Key Points

• NVIDIA shares fell 1.1% in mid-day trading, though the stock still traded near recent highs and remained supported by heavy volume and a massive $5.14 trillion market cap.
• Despite the dip, the company’s fundamentals remain strong: latest earnings beat expectations with $1.87 EPS and $81.62 billion in revenue, while revenue jumped 85.2% year over year.
• Wall Street remains broadly bullish, with multiple analysts raising targets and NVIDIA also announcing an $80 billion share buyback and a sharply higher quarterly dividend.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report)'s share price traded down 1.1% during mid-day trading on Wednesday . The stock traded as low as $208.78 and last traded at $212.60. 161,475,906 shares traded hands during trading, a decline of 5% from the average session volume of 170,794,531 shares. The stock had previously closed at $214.86.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Analysts continued to raise targets and turn more bullish, including Tigress Financial lifting its price target to $425 and other firms reiterating buy/outperform views, citing NVIDIA’s dominant AI position. Wall Street analyst updates Nvidia stock price target
• Positive Sentiment: NVIDIA’s data center business crossed $75 billion in revenue, Blackwell ramp-up remains on track, and guidance points to sustained high growth momentum. NVIDIA's Data Center Crosses 75B Mark: Can Growth Stay Strong Ahead?
• Positive Sentiment: Jensen Huang doubled down on Taiwan as the “epicentre” of AI, with NVIDIA planning about $150 billion in annual spending there and a new campus, reinforcing supply-chain confidence. Nvidia CEO says Taiwan is epicentre of AI revolution

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the stock. Royal Bank Of Canada set a $280.00 price objective on shares of NVIDIA in a research report on Thursday, May 21st. DZ Bank reissued a "buy" rating on shares of NVIDIA in a research report on Thursday, May 21st. CICC Research lifted their target price on shares of NVIDIA from $240.60 to $268.30 and gave the company an "outperform" rating in a report on Friday, May 22nd. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $350.00 target price on shares of NVIDIA in a report on Thursday, May 21st. Finally, Oppenheimer reaffirmed an "outperform" rating and issued a $265.00 target price on shares of NVIDIA in a report on Thursday, February 26th. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, NVIDIA currently has an average rating of "Buy" and a consensus target price of $305.38.

NVIDIA Trading Down 1.1%

The stock has a market cap of $5.14 trillion, a PE ratio of 32.56, a P/E/G ratio of 0.52 and a beta of 2.25. The business's fifty day moving average is $197.43 and its 200 day moving average is $189.19. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.76 by $0.11. The company had revenue of $81.62 billion during the quarter, compared to analysts' expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm's quarterly revenue was up 85.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.81 earnings per share. As a group, analysts predict that NVIDIA Corporation will post 7.98 earnings per share for the current year.

NVIDIA Increases Dividend

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

NVIDIA declared that its Board of Directors has initiated a share repurchase program on Wednesday, May 20th that allows the company to buyback $80.00 billion in shares. This buyback authorization allows the computer hardware maker to buy up to 1.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its stock is undervalued.

Insider Activity at NVIDIA

In other NVIDIA news, Director Mark A. Stevens sold 221,682 shares of NVIDIA stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $173.68, for a total transaction of $38,501,729.76. Following the completion of the transaction, the director owned 7,399,771 shares in the company, valued at approximately $1,285,192,227.28. The trade was a 2.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director John Dabiri sold 3,004 shares of NVIDIA stock in a transaction dated Friday, March 13th. The stock was sold at an average price of $184.90, for a total transaction of $555,439.60. Following the transaction, the director owned 14,788 shares of the company's stock, valued at approximately $2,734,301.20. The trade was a 16.88% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 906,336 shares of company stock valued at $162,802,518 in the last quarter. 3.94% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On NVIDIA

A number of institutional investors have recently modified their holdings of the company. Lifetime Wealth Management P.C. acquired a new position in NVIDIA during the fourth quarter worth approximately $26,000. Longview Financial Advisors Inc. acquired a new position in NVIDIA during the first quarter worth approximately $27,000. Longfellow Investment Management Co. LLC increased its position in NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock worth $33,000 after purchasing an additional 67 shares during the last quarter. Phillip James Consulting Co. purchased a new stake in NVIDIA during the first quarter worth approximately $40,000. Finally, Spurstone Advisory Services LLC purchased a new stake in NVIDIA during the second quarter worth approximately $40,000. Institutional investors and hedge funds 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.

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