NVIDIA (NASDAQ:NVDA) Shares Down 1.3% - Here's Why

Key Points

• NVIDIA shares fell 1.3% on Monday, trading as low as $218.37 before ending near $222.32, even as volume remained heavy at more than 144 million shares.
• Wall Street remains broadly bullish, with multiple analysts lifting price targets ahead of earnings and a consensus rating of Buy with a target price around $278.73.
• Investor attention is focused on NVIDIA’s upcoming earnings and guidance, with expectations for strong AI data center demand but some concern that the stock may need a very large upside surprise to keep momentum going.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) shares fell 1.3% during mid-day trading on Monday . The stock traded as low as $218.37 and last traded at $222.32. 144,682,403 shares traded hands during mid-day trading, a decline of 15% from the average session volume of 170,539,172 shares. The stock had previously closed at $225.32.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Several firms raised price targets ahead of earnings, including Morgan Stanley, DA Davidson, Wedbush and KeyBanc, reflecting continued Wall Street confidence in NVIDIA’s AI leadership and Blackwell/Rubin product cycle.
• Positive Sentiment: Analysts and traders expect a “beat-and-raise” report driven by surging AI data center demand, which could reinforce the view that NVIDIA remains the core beneficiary of hyperscaler spending.
• Positive Sentiment: Recent articles highlighted possible upside from China-related developments, including renewed H200 sales access and any improvement in monetizing Chinese demand, which could add to the growth narrative.
• Positive Sentiment: Investor interest remains strong, with multiple hedge funds reportedly adding to NVIDIA positions and prediction markets leaning bullish on a post-earnings breakout.
• Neutral Sentiment: Markets are also focused on whether CEO Jensen Huang addresses China, Trump administration policy, and trade restrictions on the earnings call, making geopolitics an important but still unresolved catalyst.
• Negative Sentiment: Some commentary says NVIDIA may need a very large guidance raise to impress a market already priced for perfection, while concerns are building around memory shortages, sustainability of AI capex, and whether the stock has outrun near-term fundamentals.
• Negative Sentiment: Shares have pulled back from recent highs as investors pause after the rally and wait for confirmation that growth can stay exceptional, increasing the risk of disappointment if earnings or guidance are merely good instead of great.

Wall Street Analysts Forecast Growth

NVDA has been the topic of a number of analyst reports. Robert W. Baird lifted their price objective on shares of NVIDIA from $275.00 to $300.00 and gave the stock an "outperform" rating in a research report on Thursday, February 26th. Tigress Financial reissued a "strong-buy" rating and set a $360.00 target price (up from $350.00) on shares of NVIDIA in a research report on Thursday, March 5th. Susquehanna restated a "positive" rating and issued a $275.00 target price (up from $250.00) on shares of NVIDIA in a research note on Tuesday, May 12th. Sanford C. Bernstein reaffirmed a "buy" rating on shares of NVIDIA in a report on Friday, April 17th. Finally, BTIG Research began coverage on NVIDIA in a research report on Wednesday, April 15th. They set a "buy" rating on the stock. Four investment analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus price target of $278.73.

NVIDIA Stock Performance

The company has a current ratio of 3.91, a quick ratio of 3.24 and a debt-to-equity ratio of 0.05. The company has a market cap of $5.38 trillion, a PE ratio of 45.37, a P/E/G ratio of 0.70 and a beta of 2.25. The firm's 50-day simple moving average is $192.36 and its two-hundred day simple moving average is $188.36.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings results on Wednesday, February 25th. The computer hardware maker reported $1.62 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.54 by $0.08. The business had revenue of $68.13 billion during the quarter, compared to analysts' expectations of $65.56 billion. NVIDIA had a net margin of 55.60% and a return on equity of 97.37%. The business's quarterly revenue was up 73.2% on a year-over-year basis. During the same quarter last year, the company posted $0.89 earnings per share. As a group, research analysts anticipate that NVIDIA Corporation will post 7.84 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 1st. Stockholders of record on Wednesday, March 11th were paid a $0.01 dividend. This represents a $0.04 annualized dividend and a dividend yield of 0.0%. The ex-dividend date was Wednesday, March 11th. NVIDIA's dividend payout ratio (DPR) is presently 0.82%.

Insider Activity

In related news, EVP Ajay K. Puri sold 300,000 shares of the company's stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $182.25, for a total value of $54,675,000.00. Following the sale, the executive vice president owned 3,018,547 shares in the company, valued at $550,130,190.75. This represents a 9.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Colette Kress sold 20,000 shares of the stock in a transaction that occurred on 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 transaction, 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 SEC filing for this sale provides additional information. Over the last three months, insiders have sold 906,336 shares of company stock valued at $162,802,518. 4.17% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. State Street Corp boosted its position in NVIDIA by 1.2% in the 4th quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker's stock worth $184,911,111,000 after purchasing an additional 11,451,386 shares in the last quarter. Geode Capital Management LLC increased 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 purchasing an additional 3,383,441 shares in the last quarter. Norges Bank acquired a new position in shares of NVIDIA in the 4th quarter valued at $62,244,133,000. Bank of America Corp DE lifted its stake in shares of NVIDIA by 1.5% in the 4th quarter. Bank of America Corp DE now owns 187,181,484 shares of the computer hardware maker's stock valued at $34,909,347,000 after purchasing an additional 2,849,678 shares during the period. Finally, Legal & General Group Plc boosted its holdings in NVIDIA by 1.5% during the third quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker's stock worth $33,808,862,000 after buying an additional 2,609,560 shares in the last quarter. 65.27% of the stock is currently 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.

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