NVIDIA (NASDAQ:NVDA) Stock Price Down 4.3% – What’s Next?

NVIDIA Corporation (NASDAQ:NVDA) shares traded down 4.3% on Monday. The company traded as low as $170.24 and last traded at $178.67. 455,532,983 shares were traded during mid-day trading, an increase of 202% from the average session volume of 150,715,156 shares. The stock had previously closed at $186.64.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA announced a collaboration with South Korea’s Rebellions and SK Telecom to support sovereign AI infrastructure using NVIDIA’s NVLink Fusion and MGX platforms, which could extend its technology ecosystem and customer reach. NVIDIA, Rebellions and SK Telecom announce collaboration
• Positive Sentiment: Some analysts remain bullish: RBC reaffirmed an Outperform rating with a $330 price target, and Goldman Sachs reaffirmed Buy with a $300 target. The company’s most recently reported quarter also showed revenue more than doubling year over year, providing a strong operating backdrop. What to watch during earnings
• Neutral Sentiment: NVIDIA says the board has no reason to believe company secrets or national security were compromised, and Huang says he is cooperating with the inquiry. The investigation’s findings and NVIDIA’s upcoming earnings are important potential catalysts. NVIDIA board investigation details
• Negative Sentiment: Huang acknowledged an extramarital relationship with a business executive whom U.S. officials reportedly suspect of ties to Chinese intelligence. The board’s independent probe, possible congressional scrutiny and questions about whether Huang could remain CEO have raised governance and leadership-continuity concerns. Reports that NVIDIA lacks a clear public succession plan add to investor uncertainty. CEO investigation and succession concerns
• Negative Sentiment: The allegations could intensify scrutiny of NVIDIA’s China business and chip-export controls, potentially complicating sales or policy discussions. Separately, Google’s expanded in-house AI-chip lineup represents a competitive challenge, while concerns about data-center financing and regulation are weighing on the broader AI infrastructure outlook. China ambitions under scrutiny

Analyst Ratings Changes

A number of brokerages have issued reports on NVDA. Citigroup reiterated a “buy” rating and set a $315.00 price objective (up from $300.00) on shares of NVIDIA in a research note on Thursday, August 27th. Wall Street Zen lowered NVIDIA from a “strong-buy” rating to a “buy” rating in a report on Saturday, October 24th. Zacks Research upgraded NVIDIA from a “hold” rating to a “strong-buy” rating in a research note on Monday, September 21st. Jefferies Financial Group reaffirmed a “buy” rating on shares of NVIDIA in a report on Wednesday, August 26th. Finally, China Renaissance increased their price objective on NVIDIA from $319.00 to $330.00 and gave the company a “buy” rating in a research report on Monday, August 31st. Five analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, NVIDIA presently has an average rating of “Buy” and an average price target of $317.57.

NVIDIA Stock Performance

The company has a market cap of $4.31 trillion, a PE ratio of 22.59, a PEG ratio of 1.43 and a beta of 2.21. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The business has a 50-day moving average of $219.80 and a 200 day moving average of $204.53.

NVIDIA (NASDAQ:NVDA) last announced its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The business had revenue of $96.22 billion for the quarter, compared to analysts’ expectations of $92.27 billion. During the same period last year, the firm posted $1.05 earnings per share. The business’s revenue for the quarter was up 105.9% on a year-over-year basis. Equities research analysts anticipate that NVIDIA Corporation will post 9.30 EPS for the current fiscal year.

NVIDIA Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA’s payout ratio is currently 12.64%.

NVIDIA announced that its Board of Directors has approved a share repurchase program on Monday, September 28th that authorizes the company to repurchase $150 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its shares are undervalued.

Insider Transactions at NVIDIA

In other news, EVP Timothy Teter sold 30,460 shares of the firm’s stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $222.80, for a total value of $6,786,488.00. Following the transaction, the executive vice president owned 2,687,660 shares of the company’s stock, valued at $598,810,648. This trade represents a 1.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 34,918 shares of the stock in a transaction on 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 completion of the sale, the chief financial officer directly owned 765,103 shares of the company’s stock, valued at approximately $167,595,812.15. This trade represents a 4.36% 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 have sold 1,766,118 shares of company stock valued at $399,450,353 over the last quarter. 3.94% of the stock is currently owned by company insiders.

Institutional Trading of NVIDIA

Several institutional investors and hedge funds have recently added to or reduced their stakes in NVDA. Jupiter Topco LLC bought a new position in shares of NVIDIA during the second quarter valued at $16,156,076,000. Van ECK Associates Corp increased its holdings in NVIDIA by 34.7% in the 2nd quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker’s stock worth $15,176,771,000 after buying an additional 19,522,304 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. purchased a new position in NVIDIA in the 3rd quarter worth about $3,921,459,000. State Street Corp lifted its stake in NVIDIA by 1.6% during the 2nd quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker’s stock valued at $202,047,568,000 after acquiring an additional 15,897,836 shares during the period. Finally, Amundi lifted its stake in NVIDIA by 10.4% during the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock valued at $23,329,141,000 after acquiring an additional 12,575,177 shares during the period. Institutional investors own 65.27% of the company’s stock.

About NVIDIA

NVIDIA Corporation develops graphics processing units (GPUs), accelerated computing platforms and related software. Founded in 1993, the company first became widely known for GPUs used in PC gaming and professional graphics. Its technology now also supports artificial intelligence, scientific computing and other data-intensive applications.

NVIDIA’s offerings include GeForce products for gaming, data-center GPUs and systems for AI workloads, and networking products that connect computing infrastructure.