NVIDIA (NASDAQ:NVDA) Trading Down 1.3% - Time to Sell?

Key Points

• NVIDIA shares fell 1.3% in Wednesday trading, slipping to as low as $203.08 before last trading near $204.65, below the prior close of $207.41.
• Despite some near-term caution, the company continues to benefit from strong AI demand and bullish analyst sentiment, with multiple firms reiterating buy ratings and an average price target of about $305.67.
• NVIDIA reported blowout quarterly results, including EPS of $1.87 and revenue of $81.62 billion, and it also raised its quarterly dividend while authorizing an $80 billion share buyback.

Shares of NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) traded down 1.3% during trading on Wednesday . The stock traded as low as $203.08 and last traded at $204.65. 125,947,335 shares were traded during mid-day trading, a decline of 26% from the average session volume of 170,679,078 shares. The stock had previously closed at $207.41.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: CEO Jensen Huang said AI could help revive U.S. manufacturing, reinforcing the view that NVIDIA’s chips and platforms remain central to the next wave of industrial and AI investment. Article: Nvidia's Huang pledges AI will boost manufacturing jobs. A test will come in Texas
• Positive Sentiment: NVIDIA-backed SandboxAQ received a $500 million U.S. government award to develop new semiconductor materials, highlighting NVIDIA’s ecosystem reach and the strategic importance of domestic chip supply chains. Article: US awards $500 million to Nvidia-backed SandboxAQ for finding new chipmaking materials
• Positive Sentiment: Multiple headlines emphasized continued AI demand and upbeat analyst/industry commentary, including bullish views on NVIDIA’s next product cycle and ongoing partnerships in AI infrastructure. Article: Can Nvidia Stock Reach $743 in the Next 12 Months?
• Neutral Sentiment: NVIDIA’s recent $25 billion bond sale and broader debt financing discussion suggest the company is still funding a massive AI buildout, which can support growth but also raises questions about capital intensity and funding discipline. Article: Nvidia plans to raise about $20 billion in first debt sale since start of AI boom
• Neutral Sentiment: NVIDIA also received some offsetting support from China-trade reprieve headlines and new partnerships, but these items mainly reinforce existing demand rather than changing the near-term earnings outlook. Article: Nvidia Gets a China Trade Reprieve
• Negative Sentiment: Short-seller Jim Chanos warned that the AI capex boom looks similar to the dot-com/telecom bubble, adding to concerns that AI infrastructure spending may not be sustainable at current levels. Article: Legendary Short Seller Jim Chanos Issues Dire Prediction
• Negative Sentiment: Several reports said NVIDIA stock is lagging the broader semiconductor group as customers face pressure to spend more efficiently, which can weigh on near-term sentiment. Article: Nvidia Stock Braced for AI Funding Squeeze

Wall Street Analyst Weigh In

A number of research firms have issued reports on NVDA. Citigroup began coverage on NVIDIA in a report on Wednesday, April 15th. They set a "buy" rating on the stock. Craig Hallum increased their price target on NVIDIA from $245.00 to $275.00 and gave the stock a "buy" rating in a report on Thursday, May 21st. Rothschild & Co Redburn increased their price target on NVIDIA from $280.00 to $300.00 and gave the stock a "buy" rating in a report on Tuesday, May 26th. Rosenblatt Securities restated a "buy" rating and set a $325.00 price target on shares of NVIDIA in a report on Thursday, May 21st. Finally, BNP Paribas Exane increased their price target on NVIDIA from $270.00 to $285.00 and gave the stock an "outperform" rating in a report on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Buy" and an average target price of $305.67.

NVIDIA Price Performance

The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. The business has a 50-day moving average price of $208.14 and a two-hundred day moving average price of $191.84. The company has a market capitalization of $4.95 trillion, a price-to-earnings ratio of 31.34, a price-to-earnings-growth ratio of 0.47 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, topping analysts' consensus estimates of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company had revenue of $81.62 billion for the quarter, compared to analyst estimates of $78.42 billion. During the same period in the prior year, the firm earned $0.81 earnings per share. NVIDIA's revenue for the quarter was up 85.2% on a year-over-year basis. As a group, research analysts anticipate that NVIDIA Corporation will post 8.65 EPS for the current year.

NVIDIA Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Thursday, June 4th will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, June 4th. This is a positive change from NVIDIA's previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. NVIDIA's payout ratio is currently 15.31%.

NVIDIA declared that its Board of Directors has authorized a share repurchase program on Wednesday, May 20th that permits the company to buyback $80.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to purchase up to 1.5% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Insider Activity at NVIDIA

In related news, CFO Colette Kress sold 42,650 shares of the stock in a transaction on Friday, March 20th. The stock was sold at an average price of $174.89, for a total value of $7,459,058.50. Following the completion of the sale, the chief financial officer directly owned 881,387 shares of the company's stock, valued at approximately $154,145,772.43. This represents a 4.62% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director John Dabiri sold 625 shares of the stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the completion of the sale, the director directly owned 14,163 shares of the company's stock, valued at $3,030,882. The trade was a 4.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,319,457 shares of company stock valued at $277,398,643 over the last three months. 3.94% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On NVIDIA

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. State Street Corp raised 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 valued at $184,911,111,000 after buying an additional 11,451,386 shares during the last quarter. Geode Capital Management LLC increased its position 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 during the last quarter. Norges Bank purchased a new stake in shares of NVIDIA during the 4th quarter valued at $62,244,133,000. Bank of America Corp DE increased its position in shares of NVIDIA by 2.1% during the 1st quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker's stock valued at $33,345,453,000 after purchasing an additional 4,019,505 shares during the last quarter. Finally, Legal & General Group Plc increased its position in shares of NVIDIA by 1.5% during the 3rd quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker's stock valued at $33,808,862,000 after purchasing an additional 2,609,560 shares during the last quarter. 65.27% of the stock is owned by hedge funds and other 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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