NVIDIA (NASDAQ:NVDA) Trading Down 2.9% - Here's What Happened

Key Points

• NVIDIA shares fell 2.9% to about $185.61 midday as reports that OpenAI is dissatisfied with some Nvidia chips and that an up-to-$100B investment in OpenAI has faced internal pushback weighed on the stock.
• Offsetting headlines: Nvidia still shows strong earnings momentum and broadened its AI infrastructure position—highlighted by an additional $2B stake in CoreWeave—which supports expectations for durable revenue and margin strength.
• Wall Street remains largely bullish with an average target near $263.98, and company fundamentals are robust (revenue up 62.5%, 53% net margin), though recent insider selling has been notable.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) dropped 2.9% during mid-day trading on Monday . The stock traded as low as $184.88 and last traded at $185.61. Approximately 161,150,308 shares changed hands during trading, a decline of 1% from the average daily volume of 163,033,250 shares. The stock had previously closed at $191.13.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Nvidia still shows earnings momentum and is widely expected to beat estimates again, supporting the case for durable revenue and margin strength. Zacks: Why Nvidia is Poised to Beat
• Positive Sentiment: Nvidia expanded strategic positions (e.g., an additional $2B stake in CoreWeave), reinforcing its role in the AI infrastructure ecosystem and securing cloud GPU capacity. Fool: Nvidia Piles $2B Into CoreWeave
• Positive Sentiment: Coverage highlighting Nvidia’s broader AI influence and CEO outreach to suppliers (Taiwan/China visits) underline management’s push to scale production and customer engagement. Yahoo Finance: Nvidia Expanding Influence
• Neutral Sentiment: CEO Jensen Huang publicly defended supporting “every developer” after scrutiny over assistance to a Chinese AI firm — a containment attempt on regulatory/PR risk but not a resolution. Bloomberg Video: CEO Supports Developers
• Neutral Sentiment: Management says China’s license process for the H200 remains underway — positive if approved but timing and outcome remain uncertain for China revenue upside. MSN: H200 China Licence Update
• Negative Sentiment: OpenAI reportedly is dissatisfied with some of Nvidia’s latest AI chips and has been seeking alternatives — a development that could reduce one of Nvidia’s highest-profile demand channels and raise customer concentration concerns. Reuters: OpenAI Unsatisfied with Some Nvidia Chips
• Negative Sentiment: Multiple reports say Nvidia’s proposed up-to-$100B investment in OpenAI has hit internal pushback or is being dialed back; uncertainty around that headline deal has weighed on the stock because it was a major narrative driver for future growth. Proactive: Internal Pushback on OpenAI Plan
• Negative Sentiment: Market headlines and commentators (Barron's/CNBC coverage) flagged the OpenAI deal doubts as a catalyst for the session’s weakness, amplifying selling in an otherwise momentum-driven name. Barron's: Stock Drops on OpenAI Investment Questions

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on NVDA shares. Hsbc Global Res upgraded shares of NVIDIA from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, October 15th. Mizuho set a $275.00 price objective on shares of NVIDIA and gave the stock an "outperform" rating in a report on Friday, January 9th. DZ Bank reaffirmed a "buy" rating on shares of NVIDIA in a report on Thursday, November 20th. Arete Research lifted their price target on shares of NVIDIA from $244.00 to $261.00 and gave the company a "buy" rating in a research report on Tuesday, November 25th. Finally, Loop Capital upped their price target on NVIDIA from $250.00 to $350.00 and gave the stock a "buy" rating in a report on Monday, November 3rd. Four investment analysts have rated the stock with a Strong Buy rating, forty-seven have assigned a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and an average target price of $263.98.

NVIDIA Trading Down 2.9%

The company has a debt-to-equity ratio of 0.06, a quick ratio of 3.71 and a current ratio of 4.47. The business has a fifty day simple moving average of $184.09 and a 200 day simple moving average of $182.62. The stock has a market cap of $4.51 trillion, a price-to-earnings ratio of 46.06, a PEG ratio of 0.93 and a beta of 2.31.

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

NVIDIA Announces Dividend

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

Insider Buying and Selling

In related 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 value of $44,332,500.00. Following the completion of the transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Ajay K. Puri sold 200,000 shares of the firm's stock in a transaction dated Wednesday, January 7th. The stock was sold at an average price of $187.82, for a total value of $37,564,000.00. Following the completion of the sale, the executive vice president directly owned 3,818,547 shares in the company, valued at approximately $717,199,497.54. The trade was a 4.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,563,834 shares of company stock worth $283,360,391 in the last three months. 4.17% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Brighton Jones LLC increased its position in shares of NVIDIA by 12.4% in the fourth quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker's stock worth $43,631,000 after acquiring an additional 35,815 shares in the last quarter. Bank Pictet & Cie Europe AG grew its holdings in NVIDIA by 1.0% during the 4th quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker's stock worth $315,100,000 after acquiring an additional 22,929 shares in the last quarter. Highview Capital Management LLC DE grew its stake in NVIDIA by 6.7% in the fourth quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker's stock worth $7,842,000 after purchasing an additional 3,653 shares in the last quarter. Hudson Value Partners LLC increased its holdings in shares of NVIDIA by 30.7% in the 4th quarter. Hudson Value Partners LLC now owns 50,658 shares of the computer hardware maker's stock valued at $6,805,000 after acquiring an additional 11,900 shares during the last quarter. Finally, Wealth Group Ltd. raised its holdings in shares of NVIDIA by 15.7% during the first quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker's stock worth $715,000 after purchasing an additional 896 shares during the period. 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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