NVIDIA (NASDAQ:NVDA) Stock Price Down 1.5% - What's Next?

Key Points

• NVIDIA shares fell 1.5% to $217.44 amid a broader semiconductor selloff driven by higher Treasury yields, expensive AI-stock valuations and concerns about future margin pressure.
• The company’s fundamentals remain strong: quarterly revenue rose 105.9% year over year to $96.22 billion and EPS beat estimates. Analysts maintain a “Moderate Buy” consensus with an average price target of $324.23.
• NVIDIA is expanding its AI ecosystem through a $3.5 billion MediaTek investment and demand from an Anthropic-Lambda cloud agreement, but investors are scrutinizing potential circular financing structures and the costs of defending against custom AI chips.

Shares of NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) fell 1.5% on Tuesday . The company traded as low as $215.10 and last traded at $217.44. 106,848,620 shares traded hands during trading, a decline of 33% from the average session volume of 159,202,031 shares. The stock had previously closed at $220.78.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s $3.5 billion convertible-bond investment in MediaTek expands its reach beyond hyperscale data centers. The companies will integrate NVIDIA’s NVLink Fusion technology with MediaTek’s custom chips for cloud infrastructure, local AI and automotive applications, helping NVIDIA defend its ecosystem against custom silicon from major customers. NVIDIA’s MediaTek Bet Shows How It Plans to Defend Its AI Moat
• Positive Sentiment: Anthropic reportedly signed a $35 billion cloud-computing agreement with NVIDIA-backed Lambda. The deal points to substantial demand for NVIDIA-powered capacity and broadening AI infrastructure spending, although the arrangement also intensifies scrutiny of financial links among chipmakers, cloud providers and AI developers. Anthropic signs $35 billion cloud deal with Nvidia-backed Lambda
• Positive Sentiment: Recent results remain a powerful fundamental support: quarterly revenue reached about $96.2 billion, up 105.9% year over year, while earnings exceeded estimates. Management’s reported outlook for roughly 70% fiscal 2028 revenue growth and continued Vera Rubin demand has prompted several analysts to raise price targets. Should NVIDIA Stock Be in Your Portfolio Post Solid Q2 Earnings?
• Neutral Sentiment: NVIDIA is reportedly working to counter custom AI accelerators by reviving the Rubin CPX program and developing specialized inference products. The strategy could preserve CUDA and NVLink demand, but it may require higher supply commitments and investment while potentially reducing margins. NVIDIA Moves Deeper Into Broadcom Territory
• Negative Sentiment: The Anthropic-Lambda arrangement has been labeled a potentially “circular” financing structure because NVIDIA backs Lambda and reportedly holds the lease on the planned data-center site. Investors are questioning whether such transactions inflate apparent demand and increase regulatory or antitrust risk. Nvidia’s Latest ‘Circular’ Deal Might Be Its Most Confusing Yet
• Negative Sentiment: A global bond selloff has pushed long-term Treasury yields higher, raising the cost of capital and pressuring high-growth technology valuations. Semiconductor stocks broadly weakened as investors reassessed expensive AI shares, with NVIDIA also facing historically soft September seasonality and concern that margins may compress as it pays more to secure constrained memory and networking components. Semiconductor Stocks Slide as Global Bond Selloff Lifts Yields

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. President Capital increased their price target on shares of NVIDIA from $295.00 to $330.00 in a research report on Thursday, August 27th. KeyCorp reaffirmed an "overweight" rating and issued a $330.00 price objective on shares of NVIDIA in a research report on Monday, August 24th. Argus boosted their price objective on shares of NVIDIA from $220.00 to $270.00 and gave the stock a "buy" rating in a research note on Thursday, May 21st. Truist Financial increased their target price on shares of NVIDIA from $307.00 to $346.00 and gave the company a "buy" rating in a research report on Thursday, August 27th. Finally, New Street Research cut their price target on shares of NVIDIA from $343.00 to $340.00 in a report on Thursday, May 21st. Two analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $324.23.

NVIDIA Stock Down 1.5%

The company's 50 day moving average price is $208.33 and its 200 day moving average price is $201.08. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The firm has a market capitalization of $5.24 trillion, a price-to-earnings ratio of 27.49, a P/E/G ratio of 1.71 and a beta of 2.23.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.13. The firm had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The firm's revenue was up 105.9% on a year-over-year basis. During the same period in the prior year, the firm earned $1.05 EPS. As a group, research analysts forecast that NVIDIA Corporation will post 9.1 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be issued a $0.25 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. NVIDIA's dividend payout ratio is currently 12.64%.

NVIDIA declared that its Board of Directors has initiated a stock repurchase program on Wednesday, May 20th that permits the company to repurchase $80.00 billion in shares. This repurchase authorization permits the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

Insider Transactions at NVIDIA

In other NVIDIA news, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the completion of the sale, the director directly owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Stephen C. Neal sold 15,500 shares of the company's stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the sale, the director directly owned 116,135 shares in the company, valued at $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 1,400,500 shares of company stock valued at $299,259,265 in the last ninety days. Corporate insiders own 3.94% of the company's stock.

Institutional Investors Weigh In On NVIDIA

Several hedge funds and other institutional investors have recently added to or reduced their stakes in NVDA. Agur Provident & Training Funds Management Ltd. purchased a new stake in NVIDIA during the second quarter worth $15,161,000. Alternative Investment Advisors LLC. increased its holdings in NVIDIA by 1.8% in the second quarter. Alternative Investment Advisors LLC. now owns 22,008 shares of the computer hardware maker's stock valued at $4,404,000 after buying an additional 383 shares in the last quarter. Cornerstone Financial Management LLC increased its holdings in NVIDIA by 44.4% in the second quarter. Cornerstone Financial Management LLC now owns 4,586 shares of the computer hardware maker's stock valued at $918,000 after buying an additional 1,409 shares in the last quarter. Formuepleje A S raised its position in shares of NVIDIA by 0.7% in the second quarter. Formuepleje A S now owns 460,938 shares of the computer hardware maker's stock worth $92,229,000 after acquiring an additional 3,410 shares during the period. Finally, Tucker Asset Management LLC boosted its stake in shares of NVIDIA by 2.8% during the 2nd quarter. Tucker Asset Management LLC now owns 108,000 shares of the computer hardware maker's stock worth $21,610,000 after acquiring an additional 2,930 shares in the last quarter. 65.27% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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