NVIDIA (NASDAQ:NVDA) Trading Down 1.8% – What’s Next?

Shares of NVIDIA Corporation (NASDAQ:NVDA) were down 1.8% on Thursday . The stock traded as low as $217.93 and last traded at $219.51. Approximately 201,219,182 shares traded hands during trading, an increase of 18% from the average daily volume of 170,715,375 shares. The stock had previously closed at $223.47.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA reported record Q1 revenue of $81.6 billion, up 85% year over year, with data center revenue of $75.2 billion up 92%, reinforcing that AI infrastructure demand remains extremely strong.
• Positive Sentiment: The company lifted shareholder returns by authorizing an additional $80 billion buyback and increasing its quarterly dividend from $0.01 to $0.25 per share, which signals management confidence and should support the stock. Article Title
• Positive Sentiment: Several analysts raised price targets after the report, reflecting continued Wall Street optimism that NVIDIA can keep growing into its valuation.
• Neutral Sentiment: NVIDIA announced upcoming financial-community events, including a TD Cowen conference appearance on May 28, which keeps the company in front of investors but is not a major near-term catalyst. Article Title
• Neutral Sentiment: Management also unveiled the Vera Rubin platform and other new AI products, which strengthens the long-term growth story, but investors are waiting to see how quickly those ramps translate into revenue.
• Negative Sentiment: The stock failed to rally because expectations were extremely high, and some investors are concerned that near-term upside may be limited without an even bigger guidance surprise or clearer visibility on China and future AI spending.
• Negative Sentiment: Articles and commentary also point to competition risks, supply bottlenecks, and a “priced for perfection” setup, all of which can cap enthusiasm even after strong results.

Analysts Set New Price Targets

Several research analysts recently weighed in on NVDA shares. TD Cowen restated a “buy” rating and set a $275.00 target price (up from $235.00) on shares of NVIDIA in a research note on Friday, May 15th. JPMorgan Chase & Co. boosted their target price on NVIDIA from $265.00 to $280.00 and gave the stock an “overweight” rating in a research note on Thursday. BTIG Research initiated coverage on NVIDIA in a research note on Wednesday, April 15th. They set a “buy” rating on the stock. Craig Hallum boosted their target price on shares of NVIDIA from $245.00 to $275.00 and gave the stock a “buy” rating in a research report on Thursday. Finally, Susquehanna reissued a “positive” rating and set a $275.00 target price (up from $250.00) on shares of NVIDIA in a research report on Tuesday, May 12th. Four investment analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, NVIDIA has a consensus rating of “Buy” and an average price target of $298.58.

NVIDIA Trading Down 1.8%

The company has a debt-to-equity ratio of 0.05, a quick ratio of 3.24 and a current ratio of 3.91. The company has a 50 day simple moving average of $194.82 and a two-hundred day simple moving average of $188.75. The firm has a market cap of $5.32 trillion, a PE ratio of 44.80, a P/E/G ratio of 0.69 and a beta of 2.25.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating the consensus estimate of $1.76 by $0.11. The business had revenue of $81.62 billion for the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a net margin of 55.60% and a return on equity of 97.37%. The business’s revenue for the quarter was up 85.2% on a year-over-year basis. During the same period in the prior year, the firm earned $0.81 EPS. Analysts expect that NVIDIA Corporation will post 7.85 EPS for the current fiscal year.

NVIDIA Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Thursday, June 4th will be issued a $0.25 dividend. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. The ex-dividend date of this dividend is Thursday, June 4th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA’s payout ratio is currently 0.82%.

NVIDIA announced that its board has approved a stock repurchase plan on Wednesday, May 20th that allows the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to purchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other news, EVP Ajay K. Puri sold 300,000 shares of the company’s stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $182.25, for a total value of $54,675,000.00. Following the sale, the executive vice president owned 3,018,547 shares in the company, valued at $550,130,190.75. This represents a 9.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Aarti S. Shah sold 19,000 shares of the company’s stock in a transaction dated Thursday, March 19th. The stock was sold at an average price of $176.71, for a total value of $3,357,490.00. Following the completion of the sale, the director owned 36,007 shares in the company, valued at $6,362,796.97. The trade was a 34.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 906,336 shares of company stock worth $162,802,518. Company insiders own 4.17% of the company’s stock.

Institutional Trading of NVIDIA

Hedge funds have recently added to or reduced their stakes in the company. Brighton Jones LLC grew its holdings in NVIDIA by 12.4% in the fourth quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker’s stock valued at $43,631,000 after purchasing an additional 35,815 shares during the period. Bank Pictet & Cie Europe AG lifted its holdings in NVIDIA by 1.0% during the fourth quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker’s stock valued at $315,100,000 after purchasing an additional 22,929 shares in the last quarter. Highview Capital Management LLC DE lifted its holdings in NVIDIA by 6.7% during the fourth quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker’s stock valued at $7,842,000 after purchasing an additional 3,653 shares in the last quarter. Hudson Value Partners LLC lifted its holdings in NVIDIA by 30.7% during the fourth quarter. Hudson Value Partners LLC now owns 50,658 shares of the computer hardware maker’s stock valued at $6,805,000 after purchasing an additional 11,900 shares in the last quarter. Finally, Wealth Group Ltd. lifted its holdings in NVIDIA by 15.7% during the first quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker’s stock valued at $715,000 after purchasing an additional 896 shares in the last quarter. 65.27% of the stock is 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.