NVIDIA (NASDAQ:NVDA) Trading Down 1% - What's Next?

Key Points

• NVIDIA shares slipped about 1% mid‑day to roughly $196.48, with trading volume down ~36% versus the average session (≈109.3M vs 171.1M shares).
• The company posted a strong quarter (EPS $1.62 vs $1.54 estimate; revenue $68.13B, up 73.2% YoY), prompting multiple price‑target upgrades and an average analyst target of $275.25 driven by exceptional cash generation and sustained AI‑driven GPU demand.
• Near‑term risks include a potential structural competitor as Google moves to sell TPUs directly, short‑term profit‑taking in prediction markets, and notable insider selling (~953,976 shares worth $171M), which could weigh on the stock.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report)'s stock price fell 1% during mid-day trading on Tuesday . The stock traded as low as $196.03 and last traded at $196.4780. 109,288,964 shares were traded during mid-day trading, a decline of 36% from the average session volume of 171,061,484 shares. The stock had previously closed at $198.48.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: DBS raised its price target on NVDA, signaling continued analyst conviction that NVIDIA’s AI-led growth justifies higher valuations. DBS Bank Raises PT on NVIDIA
• Positive Sentiment: Analyst notes and company metrics point to exceptional cash generation and margin strength after recent quarters, supporting NVDA’s ability to invest in capacity and R&D. NVDA's Cash Generation Soars
• Positive Sentiment: Wall Street commentary (Bernstein) and industry flow suggest AI-agent deployments are driving chip demand “off the charts,” which supports multiyear demand for NVIDIA GPUs. Bernstein: AI Agents Drive Chip Demand
• Positive Sentiment: NVIDIA continues to back ecosystem plays (example: DeepInfra funding) that expand its software and inference stack — a positive for long-term GPU demand and platform stickiness. Nvidia Backs DeepInfra in $107 Million Raise
• Neutral Sentiment: CEO Jensen Huang’s public messaging (AI creates jobs) helps sentiment and reduces regulatory/political fears, but has limited direct near-term impact on revenue. Nvidia CEO Says AI Job Automation Doesn't Equal Job Losses
• Neutral Sentiment: Bloomberg/Yahoo pieces note NVIDIA’s deep partner ties across Asia — good for supplier demand but also highlights that competitors and suppliers are becoming more entwined with multiple hyperscalers. Nvidia Partnerships Fuel Surge in Asian Tech Suppliers
• Negative Sentiment: Reports that Google will sell its TPUs directly to enterprise customers raise the risk of a structural competitor in AI compute procurement, which could pressure NVIDIA’s share in certain cloud/enterprise segments. Google Moves to Sell TPUs Directly
• Negative Sentiment: Prediction-market contracts and some short-term traders are leaning bearish on NVDA into month-end, reflecting profit-taking and concerns about sustaining April highs. Crypto Markets Predict Nvidia Stock Price
• Negative Sentiment: Alphabet’s surge (Reuters coverage) is narrowing NVIDIA’s lead in market-cap and shifts headline attention — equities often rotate into the top-performing momentum name, which can weigh on NVDA in the short run. Alphabet Closes in on Nvidia

Wall Street Analysts Forecast Growth

NVDA has been the subject of several recent research reports. Itau BBA Securities reissued a "market perform" rating on shares of NVIDIA in a report on Thursday, February 26th. Wedbush lifted their price objective on NVIDIA from $230.00 to $300.00 and gave the company an "outperform" rating in a research report on Tuesday, March 3rd. Raymond James Financial lifted their price objective on NVIDIA from $291.00 to $323.00 and gave the company a "strong-buy" rating in a research report on Thursday, March 19th. Rosenblatt Securities reaffirmed a "buy" rating and set a $325.00 price objective on shares of NVIDIA in a research report on Monday, March 23rd. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of NVIDIA in a research report on Friday, April 10th. Four 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. Based on data from MarketBeat, the company presently has an average rating of "Buy" and an average price target of $275.25.

NVIDIA Price Performance

The firm has a 50 day moving average of $186.75 and a 200-day moving average of $186.18. The company has a market cap of $4.77 trillion, a P/E ratio of 40.10, a P/E/G ratio of 0.65 and a beta of 2.25. The company has a current ratio of 3.91, a quick ratio of 3.24 and a debt-to-equity ratio of 0.05.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its earnings results on Wednesday, February 25th. The computer hardware maker reported $1.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.54 by $0.08. The company had revenue of $68.13 billion for the quarter, compared to the consensus estimate of $65.56 billion. NVIDIA had a return on equity of 97.37% and a net margin of 55.60%.The firm's quarterly revenue was up 73.2% on a year-over-year basis. During the same quarter last year, the company earned $0.89 EPS. On average, equities research analysts predict that NVIDIA Corporation will post 7.78 EPS for the current year.

NVIDIA Announces Dividend

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

Insider Activity

In other news, Director John Dabiri sold 3,004 shares of the business's stock in a transaction that occurred on 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 transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Mark A. Stevens sold 221,682 shares of the business's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $173.68, for a total value of $38,501,729.76. Following the transaction, the director directly owned 7,399,771 shares in the company, valued at approximately $1,285,192,227.28. This represents a 2.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 953,976 shares of company stock worth $171,173,819. Company insiders own 4.17% of the company's stock.

Institutional Investors Weigh In On NVIDIA

Several hedge funds have recently made changes to their positions in NVDA. Lifetime Wealth Management P.C. acquired a new stake in NVIDIA during the fourth quarter worth about $26,000. Longview Financial Advisors Inc. acquired a new stake in NVIDIA during the first quarter worth about $27,000. Longfellow Investment Management Co. LLC grew its holdings 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 acquiring an additional 67 shares during the period. Inspire Investing LLC acquired a new stake in NVIDIA during the fourth quarter worth about $44,000. Finally, AlphaCentric Advisors LLC acquired a new stake in NVIDIA during the fourth quarter worth about $45,000. 65.27% of the stock is currently owned by hedge funds and other institutional investors.

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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