NVIDIA (NASDAQ:NVDA) Stock Falls 4.4% - Here's Why

Key Points

• NVIDIA shares fell 4.4% to $212.21 on heavy trading volume, despite the company’s latest AI-related announcements.
• At GTC Berlin, NVIDIA highlighted the DSX POD modular AI factory, which could reduce deployment timelines from about six months to as little as 14 days, while partnerships expanded its reach across physical AI, telecom, automotive, robotics, and industrial computing.
• Analyst sentiment remains bullish: NVIDIA has a consensus “Buy” rating and an average price target of $321.47. The company also reported quarterly revenue growth of 105.9% and authorized a $150 billion share-repurchase program.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) shares fell 4.4% on Thursday. The stock traded as low as $211.26 and last traded at $212.21. 123,933,806 shares traded hands during trading, a decline of 18% from the average daily volume of 150,264,484 shares. The stock had previously closed at $221.97.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s GTC Berlin announcements reinforced its expansion beyond GPUs. The DSX POD modular AI factory can potentially reduce deployment time from roughly six months to as little as 14 days, while DSX software is designed to improve power efficiency, cooling, and data-center utilization. NVIDIA Introduces DSX POD Reference Design
• Positive Sentiment: Partnerships with HPE, Schneider Electric, Nokia, automotive companies, robotics developers, and enterprise software providers broaden NVIDIA’s potential markets in physical AI, autonomous vehicles, telecom, and industrial computing. Schneider Electric, NVIDIA and HPE collaboration
• Positive Sentiment: Analyst commentary remains constructive, with BNP Paribas describing NVIDIA’s GTC progress as impressive and one Seeking Alpha analysis maintaining a Strong Buy view based on the company’s growing role in AI infrastructure, networking, security, and agentic computing. BNP Paribas on NVIDIA at GTC Berlin

Analysts Set New Price Targets

NVDA has been the topic of several analyst reports. Rothschild & Co Redburn increased their price target on shares of NVIDIA from $300.00 to $325.00 in a research note on Thursday, August 27th. Cantor Fitzgerald reiterated an "overweight" rating and issued a $350.00 price objective on shares of NVIDIA in a research note on Thursday, October 1st. Oppenheimer set a $315.00 target price on NVIDIA and gave the stock an "outperform" rating in a research report on Thursday, August 27th. Stifel Nicolaus set a $315.00 price objective on NVIDIA in a research note on Thursday, August 27th. Finally, Morgan Stanley set a $230.00 price target on shares of NVIDIA in a report on Friday, October 2nd. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Buy" and an average price target of $321.47.

NVIDIA Stock Performance

The stock has a market cap of $5.11 trillion, a P/E ratio of 26.83, a PEG ratio of 1.66 and a beta of 2.22. The stock has a fifty day simple moving average of $222.86 and a 200-day simple moving average of $212.57. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, beating the consensus estimate of $2.09 by $0.13. The firm had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business's quarterly revenue was up 105.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.05 earnings per share. Equities analysts expect that NVIDIA Corporation will post 9.30 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA's payout ratio is presently 12.64%.

NVIDIA announced that its Board of Directors has initiated a stock repurchase program on Monday, September 28th that allows the company to repurchase $150.00 billion in shares. This repurchase authorization allows the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Stock repurchase programs are usually a sign that the company's management believes its shares are undervalued.

Insider Transactions at NVIDIA

In other news, CFO Colette Kress sold 34,918 shares of the firm's stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the sale, the chief financial officer owned 765,103 shares of the company's stock, valued at $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of NVIDIA stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $231.62, for a total value of $144,122,997.18. Following the transaction, the director owned 2,336,531 shares in the company, valued at $541,187,310.22. This trade represents a 21.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,766,118 shares of company stock valued at $399,450,353 over the last 90 days. 3.94% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Boyd Wealth Management LLC raised its holdings in NVIDIA by 273.4% during the second quarter. Boyd Wealth Management LLC now owns 9,145 shares of the computer hardware maker's stock worth $1,830,000 after acquiring an additional 6,696 shares in the last quarter. Ally Financial Inc. grew its stake in NVIDIA by 10.3% in the second quarter. Ally Financial Inc. now owns 172,000 shares of the computer hardware maker's stock valued at $34,415,000 after purchasing an additional 16,000 shares in the last quarter. Altshuler Shaham Ltd grew its stake in NVIDIA by 6,451.9% in the first quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker's stock valued at $111,134,000 after purchasing an additional 627,510 shares in the last quarter. Baker Tilly Wealth Management LLC increased its position in shares of NVIDIA by 7.4% during the 2nd quarter. Baker Tilly Wealth Management LLC now owns 71,898 shares of the computer hardware maker's stock worth $14,386,000 after purchasing an additional 4,958 shares during the last quarter. Finally, Vaughan Nelson Investment Management L.P. increased its position in shares of NVIDIA by 11.6% during the 1st quarter. Vaughan Nelson Investment Management L.P. now owns 1,754,078 shares of the computer hardware maker's stock worth $305,911,000 after purchasing an additional 182,345 shares during the last quarter. Institutional investors own 65.27% of the company's stock.

NVIDIA Company Profile

NVIDIA Corporation NASDAQ: NVDA is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.

The company's products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.

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