NVIDIA (NASDAQ:NVDA) Shares Down 3.4% - Should You Sell?

Key Points

• Shares fell 3.4% to roughly $174 on heavy volume (≈21% above average), yet Wall Street sentiment remains bullish with a consensus Buy rating and a $263.98 average price target.
• Nvidia is reportedly nearing a $20 billion investment into OpenAI, and rising hyperscaler AI capex (e.g., Google) is viewed as a strong tailwind for ongoing data‑center GPU demand.
• Regulatory uncertainty — U.S. conditions on H200 chip sales to ByteDance — could keep China revenue in limbo and represents a clear near‑term headwind.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report)'s share price fell 3.4% on Wednesday . The company traded as low as $171.91 and last traded at $174.19. 203,386,412 shares changed hands during mid-day trading, an increase of 21% from the average session volume of 168,033,641 shares. The stock had previously closed at $180.34.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Nvidia is reported to be nearing a roughly $20 billion investment into OpenAI, which would deepen its strategic ties to a major AI customer and signal long-term demand for Nvidia GPUs and services. Nvidia nears deal to invest $20 billion in OpenAI funding round, Bloomberg News reports
• Positive Sentiment: Big-cloud capex is picking up: Google’s ramp in AI spending lifted chip names, and Reuters/CNBC coverage shows hyperscaler investment remains a tailwind for Nvidia’s data-center GPU demand. Broadcom, Nvidia shares rise on surging Google capital expenditures for AI
• Positive Sentiment: Institutional buying: Davis Selected Advisers reportedly added to its NVDA stake, a sign of continued long-only investor appetite at the institutional level. That supports the view that large holders remain committed despite recent volatility. Davis Selected Advisers boosts Nvidia stake by 21k shares
• Neutral Sentiment: MarketBeat and analyst pieces continue to list NVDA as a top setup into upcoming reports (guidance-driven season). These reminders keep expectations high but also raise the bar for near-term earnings/upgrade catalysts. Palantir and Woodward Jumped on Earnings Beats—Here Are 3 More Setups to Watch (NVDA)
• Neutral Sentiment: High-profile commentary (Jim Cramer and others) describes NVDA as a “coiled spring” — bullish in tone but also reflective of a stock that’s pausing, which can mean chop ahead as expectations get digested. Jim Cramer on NVIDIA: “I Call It a Coiled Spring”
• Negative Sentiment: Regulatory uncertainty: Reuters reports the U.S. government is willing to allow H200 chip sales to ByteDance only under conditions Nvidia hasn’t agreed to — prolonging China sales ambiguity and keeping a material revenue stream in limbo. That geopolitical/regulatory risk is a clear headwind. Exclusive: Nvidia's AI chip sale to ByteDance hinges on conditions set by Trump administration
• Negative Sentiment: Broader software/tech selloff is dragging NVDA: analysts note the stock is being swept up in an indiscriminate software/AI pullback, amplifying short-term downside even as Nvidia’s fundamentals remain strong. Nvidia's stock gets swept up in software selloff, but this analyst says that makes no sense

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the company. Truist Financial restated a "buy" rating and issued a $275.00 price target on shares of NVIDIA in a research note on Monday, December 29th. President Capital raised their target price on shares of NVIDIA from $240.00 to $245.00 and gave the company a "buy" rating in a research note on Friday, November 28th. Raymond James Financial reaffirmed a "strong-buy" rating on shares of NVIDIA in a research report on Tuesday, January 6th. JPMorgan Chase & Co. reissued a "buy" rating on shares of NVIDIA in a research report on Wednesday, January 21st. Finally, S&P Equity Research restated a "positive" rating on shares of NVIDIA in a research note on Wednesday, October 22nd. Four research analysts have rated the stock with a Strong Buy rating, forty-seven have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Buy" and a consensus price target of $263.98.

NVIDIA Stock Down 3.4%

The company has a current ratio of 4.47, a quick ratio of 3.71 and a debt-to-equity ratio of 0.06. The stock has a market cap of $4.23 trillion, a P/E ratio of 43.22, a PEG ratio of 0.57 and a beta of 2.31. The firm has a 50-day simple moving average of $184.21 and a two-hundred day simple moving average of $182.77.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings results on Wednesday, November 19th. The computer hardware maker reported $1.30 EPS for the quarter, beating the consensus estimate of $1.23 by $0.07. NVIDIA had a net margin of 53.01% and a return on equity of 99.24%. The business had revenue of $57.01 billion for the quarter, compared to the consensus estimate of $54.66 billion. During the same period in the prior year, the company posted $0.81 earnings per share. NVIDIA's revenue was up 62.5% compared to the same quarter last year. Equities research analysts expect that NVIDIA Corporation will post 2.77 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, December 26th. Stockholders of record on Thursday, December 4th were issued a dividend of $0.01 per share. The ex-dividend date of this dividend was Thursday, December 4th. This represents a $0.04 annualized dividend and a dividend yield of 0.0%. NVIDIA's dividend payout ratio (DPR) is currently 0.99%.

Insiders Place Their Bets

In other news, Director Harvey C. Jones sold 250,000 shares of the company's stock in a transaction on Monday, December 15th. The stock was sold at an average price of $177.33, for a total transaction of $44,332,500.00. Following the completion of the sale, the director directly owned 6,933,280 shares in the company, valued at approximately $1,229,478,542.40. This represents a 3.48% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Colette Kress sold 27,640 shares of the stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $184.92, for a total value of $5,111,188.80. Following the sale, the chief financial officer directly owned 874,412 shares in the company, valued at approximately $161,696,267.04. This trade represents a 3.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,563,834 shares of company stock valued at $283,360,391 in the last quarter. Company insiders own 4.17% of the company's stock.

Hedge Funds Weigh In On NVIDIA

Several hedge funds and other institutional investors have recently modified their holdings of the business. Harbor Asset Planning Inc. bought a new stake in shares of NVIDIA during the 2nd quarter valued at approximately $28,000. Winnow Wealth LLC bought a new position in NVIDIA in the 2nd quarter valued at approximately $32,000. Longfellow Investment Management Co. LLC boosted its position in NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock valued at $33,000 after buying an additional 67 shares in the last quarter. Spurstone Advisory Services LLC bought a new stake in shares of NVIDIA during the second quarter worth $40,000. Finally, Syntax Research Inc. grew its stake in shares of NVIDIA by 62.5% during the fourth quarter. Syntax Research Inc. now owns 260 shares of the computer hardware maker's stock worth $49,000 after buying an additional 100 shares during 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.

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