NVIDIA (NASDAQ:NVDA) Shares Down 4.4% - Here's Why

Key Points

• NVIDIA shares fell 4.4% in mid-day trading Friday, with the stock dropping to as low as $224.24 after closing at $235.74 the prior session. Trading volume was slightly above average, suggesting elevated investor activity around the move.
• Despite the decline, analyst sentiment remains very bullish. Several firms recently raised price targets, and MarketBeat data shows a consensus “Buy” rating with a target price of $276.56.
• Fundamental and business catalysts remain strong, including expectations for a Q1 earnings beat, continued AI infrastructure demand, and U.S. approval for H200 chip sales to China, which could reopen a major market for NVIDIA.

Shares of NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) dropped 4.4% during mid-day trading on Friday . The stock traded as low as $224.24 and last traded at $225.32. Approximately 174,840,490 shares changed hands during trading, an increase of 2% from the average daily volume of 170,756,047 shares. The stock had previously closed at $235.74.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: U.S. approval for H200 chip sales to China could reopen a large market and lift data center revenue expectations. Reuters: US clears H200 chip sales to 10 China firms as Nvidia CEO looks for breakthrough
• Positive Sentiment: UBS raised its price target to $275 from $245, and Cantor Fitzgerald lifted its target to $350, signaling strong analyst confidence in NVIDIA’s earnings power and AI demand. Proactive: Nvidia price target boosted ahead of expected first quarter revenue beat
• Positive Sentiment: Multiple reports say NVIDIA’s Q1 results are expected to beat estimates, supported by hyperscaler spending and continued AI infrastructure buildout. Zacks: NVIDIA Likely to Beat Q1 Earnings Estimates

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the stock. Susquehanna restated a "positive" rating and issued a $275.00 price objective (up from $250.00) on shares of NVIDIA in a research report on Tuesday. Robert W. Baird increased their target price on shares of NVIDIA from $275.00 to $300.00 and gave the stock an "outperform" rating in a report on Thursday, February 26th. Wall Street Zen lowered shares of NVIDIA from a "strong-buy" rating to a "buy" rating in a research note on Sunday, April 26th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $250.00 price target on shares of NVIDIA in a research note on Thursday. Finally, Raymond James Financial boosted their price objective on shares of NVIDIA from $291.00 to $323.00 and gave the stock a "strong-buy" rating in a research report on Thursday, March 19th. Four analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus target price of $276.56.

NVIDIA Price Performance

The company's 50 day moving average is $191.52 and its 200 day moving average is $188.12. The company has a quick ratio of 3.24, a current ratio of 3.91 and a debt-to-equity ratio of 0.05. The firm has a market capitalization of $5.46 trillion, a price-to-earnings ratio of 45.98, a P/E/G ratio of 0.74 and a beta of 2.25.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings data on Wednesday, February 25th. The computer hardware maker reported $1.62 earnings per share for the quarter, topping the consensus estimate 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%. NVIDIA's revenue was up 73.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.89 earnings per share. On average, equities research analysts anticipate that NVIDIA Corporation will post 7.84 earnings per share for the current fiscal year.

NVIDIA Dividend Announcement

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

Insiders Place Their Bets

In other news, Director Mark A. Stevens sold 221,682 shares of NVIDIA stock in a transaction on Friday, March 20th. The stock was sold at an average price of $173.68, for a total transaction of $38,501,729.76. Following the sale, the director directly owned 7,399,771 shares in the company, valued at $1,285,192,227.28. The trade was a 2.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Aarti S. Shah sold 19,000 shares of the business's 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 completion of the sale, the director owned 36,007 shares in the company, valued at $6,362,796.97. This represents a 34.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 906,336 shares of company stock worth $162,802,518 in the last quarter. Insiders own 4.17% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of NVDA. Lifetime Wealth Management P.C. bought a new position in shares of NVIDIA during the fourth quarter valued at approximately $26,000. Longview Financial Advisors Inc. purchased a new stake in shares of NVIDIA in the first quarter worth $27,000. Longfellow Investment Management Co. LLC boosted its position in shares of NVIDIA by 47.9% during 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 during the last quarter. Phillip James Consulting Co. purchased a new stake in shares of NVIDIA during the first quarter valued at $40,000. Finally, Spurstone Advisory Services LLC purchased a new stake in shares of NVIDIA during the second quarter valued at $40,000. Hedge funds and other 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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