NVIDIA (NASDAQ:NVDA) Shares Down 1.6% - What's Next?

Key Points

• NVIDIA shares fell 1.6% on Thursday, trading as low as $205.96 before closing at $208.76, with volume below its average session level.
• Despite the dip, the article highlights mostly bullish sentiment: technical traders see a breakout above the 50-day moving average, and analysts continue to rate the stock favorably with an average target price of about $304.26.
• Fundamentals remain strong, with NVIDIA reporting revenue and EPS above expectations, raising its dividend, and authorizing an $80 billion share buyback, even as competition from AMD and some investor rotation create near-term pressure.

Shares of NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) dropped 1.6% during trading on Thursday . The stock traded as low as $205.96 and last traded at $208.76. 109,754,159 shares changed hands during trading, a decline of 34% from the average session volume of 165,296,813 shares. The stock had previously closed at $212.06.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Technical traders are pointing to a breakout above the 50-day moving average and an early buy trigger, suggesting momentum could be improving for NVDA. Nvidia (NVDA) Recently Broke Out Above the 50-Day Moving Average
• Positive Sentiment: Analysts and market commentators continue to argue NVIDIA remains a core AI infrastructure winner, citing strong GPU dominance, attractive valuation, and room for further upside. NVIDIA's Next Breakout? Market Veteran Sees Plenty of Fuel Left in the AI Leader
• Positive Sentiment: Business developments like NVIDIA’s stake in Nebius, the launch of Spectrum-6 Ethernet, Rubin chip shipments, and expanded AI partnerships support the view that demand for its hardware and ecosystem remains strong. Cementing the Sky: Why NVIDIA’s Bet on Nebius Matters (NVDA)
• Positive Sentiment: Wall Street sentiment remains constructive, with upgrades and bullish calls highlighting NVIDIA’s strong growth, software moat, and AI-driven revenue opportunities. Nvidia donates supercomputer to U.S. military university
• Neutral Sentiment: Some coverage focused on NVIDIA’s expanding use cases and corporate venture capital influence, which is supportive of the brand but not an immediate earnings catalyst. Nvidia's Sydney Sykes on winning corporate venture capital deals
• Negative Sentiment: NVDA is facing rotation pressure as investors shift toward memory and other semiconductor names, with some reports saying the market is looking past Nvidia despite higher AI capex across the industry. Nvidia stock falls: why can't it benefit from increased AI capex
• Negative Sentiment: Competitive pressure is also in focus, as AMD’s new Anthropic deal and AI infrastructure launch are being viewed as a direct challenge to NVIDIA’s dominance in AI hardware. AMD expected to launch next generation of AI infrastructure to challenge Nvidia

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. BTIG Research assumed coverage on shares of NVIDIA in a report on Wednesday, April 15th. They issued a "buy" rating for the company. Wolfe Research reaffirmed an "outperform" rating and issued a $275.00 price objective on shares of NVIDIA in a research report on Thursday, May 21st. Rothschild & Co Redburn upped their target price on shares of NVIDIA from $280.00 to $300.00 and gave the stock a "buy" rating in a research note on Tuesday, May 26th. Susquehanna reiterated a "positive" rating and set a $275.00 target price (up from $250.00) on shares of NVIDIA in a report on Tuesday, May 12th. Finally, Cantor Fitzgerald reissued an "overweight" rating and issued a $350.00 price target on shares of NVIDIA in a research note on Thursday, May 21st. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Buy" and an average target price of $304.26.

NVIDIA Stock Performance

The stock's 50-day moving average price is $208.76 and its 200 day moving average price is $195.59. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The firm has a market cap of $5.05 trillion, a P/E ratio of 31.97, a price-to-earnings-growth ratio of 0.40 and a beta of 2.21.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced 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 net margin of 62.97% and a return on equity of 96.94%. The business had revenue of $81.61 billion during the quarter, compared to analysts' expectations of $78.42 billion. During the same quarter in the prior year, the company posted $0.81 earnings per share. The firm's revenue was up 85.2% on a year-over-year basis. As a group, equities analysts predict that NVIDIA Corporation will post 8.79 EPS for the current year.

NVIDIA Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Thursday, June 4th were issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date was Thursday, June 4th. This is a positive change from NVIDIA's previous quarterly dividend of $0.01. NVIDIA's dividend payout ratio is 15.31%.

NVIDIA declared that its Board of Directors has authorized a stock buyback plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to buy up to 1.5% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

Insider Activity at NVIDIA

In related news, Director John Dabiri sold 625 shares of the stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total transaction of $133,750.00. Following the completion of the transaction, the director directly owned 14,163 shares of the company's stock, valued at approximately $3,030,882. This represents a 4.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of the firm's stock in a transaction that occurred on 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 transaction, the director owned 116,135 shares of the company's stock, valued at approximately $25,053,803.55. This 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 have sold 1,901,125 shares of company stock valued at $410,583,015. 3.94% of the stock is owned by insiders.

Hedge Funds Weigh In On NVIDIA

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Lifetime Wealth Management P.C. bought a new stake in NVIDIA in the fourth quarter valued at approximately $26,000. Longview Financial Advisors Inc. bought a new stake in NVIDIA in the 1st quarter valued at $27,000. Longfellow Investment Management Co. LLC boosted 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 period. Phillip James Consulting Co. bought a new position in shares of NVIDIA in the first quarter valued at about $40,000. Finally, Inspire Investing LLC acquired a new stake in shares of NVIDIA during the 4th quarter worth about $44,000. 65.27% of the stock is owned by institutional investors.

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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