NVIDIA (NASDAQ:NVDA) Trading Down 1.1% – Time to Sell?

NVIDIA Corporation (NASDAQ:NVDA)’s share price was down 1.1% during trading on Wednesday . The company traded as low as $208.78 and last traded at $212.60. Approximately 161,475,906 shares traded hands during mid-day trading, a decline of 5% from the average daily volume of 170,794,531 shares. The stock had previously closed at $214.86.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Investors are looking ahead to Computex in Taiwan as a possible near-term catalyst, with reports saying the event could highlight NVIDIA’s next-generation AI hardware and ecosystem plans. Nvidia Stock Is Stuck. Taiwan Tech Conference Could Be a Catalyst.
• Positive Sentiment: Several articles point to NVIDIA’s expanding push into photonics and other new technologies, with billions of dollars in investment signaling a longer-term growth opportunity beyond GPUs. Nvidia is investing billions into this emerging technology that could change the AI industry
• Positive Sentiment: Analysts remain constructive on the stock, with commentary saying NVIDIA’s revenue growth, margins, and valuation still compare favorably with peers in the AI chip space. NVIDIA vs. Marvell Technology: Which AI Chip Stock Has the Edge?
• Positive Sentiment: Broader AI supply-chain coverage continues to reinforce NVIDIA’s central role in the buildout, including memory, power, and server infrastructure trends that support continued chip demand. Nvidia chief Jensen Huang to join board of Beijing’s Tsinghua University, FT reports
• Neutral Sentiment: Some commentary is more cautious, noting that semiconductor stocks may be getting extended and that valuation concerns are starting to reappear after the sector’s strong run. In China, AMD CEO Lisa Su is understated while Nvidia’s Huang is more razzmatazz
• Negative Sentiment: A few recent pieces question whether NVIDIA can keep outperforming if the AI trade cools, and some bearish commentary suggests the stock may be vulnerable if investors rotate to cheaper beneficiaries of the AI buildout. Nvidia Stock Has Struggled Over the Last Week. Here’s What I Think Is Going On.

Analysts Set New Price Targets

A number of equities analysts have commented on NVDA shares. Wolfe Research reissued an “outperform” rating and issued a $275.00 price objective on shares of NVIDIA in a research note on Thursday, May 21st. Daiwa Securities Group increased their target price on NVIDIA from $215.00 to $255.00 and gave the company an “outperform” rating in a research note on Friday, May 22nd. Seaport Research Partners increased their price target on NVIDIA from $140.00 to $180.00 and gave the stock a “sell” rating in a report on Thursday, May 21st. Wells Fargo & Company reissued an “overweight” rating and set a $315.00 price objective (up from $265.00) on shares of NVIDIA in a research report on Tuesday, May 12th. Finally, Wall Street Zen upgraded NVIDIA from a “buy” rating to a “strong-buy” rating in a research note on Saturday, May 23rd. Three research analysts have rated the stock with a Strong Buy rating, forty-seven have given a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus target price of $305.38.

NVIDIA Stock Up 1.4%

The firm has a market capitalization of $5.26 trillion, a P/E ratio of 33.27, a PEG ratio of 0.51 and a beta of 2.25. The firm’s 50 day moving average is $198.67 and its two-hundred day moving average is $189.55. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85.

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. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm had revenue of $81.62 billion for the quarter, compared to the consensus estimate of $78.42 billion. During the same period in the previous year, the company earned $0.81 earnings per share. The company’s quarterly revenue was up 85.2% on a year-over-year basis. Research analysts predict that NVIDIA Corporation will post 8.04 EPS for the current year.

NVIDIA Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Thursday, June 4th will be given a $0.25 dividend. The ex-dividend date of this dividend is Thursday, June 4th. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is presently 0.61%.

NVIDIA announced that its Board of Directors has initiated a share buyback plan on Wednesday, May 20th that allows the company to repurchase $80.00 billion in shares. This repurchase authorization allows the computer hardware maker to reacquire up to 1.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its stock is undervalued.

Insider Buying and Selling

In other news, Director Aarti S. Shah sold 19,000 shares of the business’s stock in a transaction dated Thursday, March 19th. The shares were 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 of the company’s stock, valued at approximately $6,362,796.97. The trade was a 34.54% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Mark A. Stevens sold 221,682 shares of the business’s stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $173.68, for a total transaction of $38,501,729.76. Following the completion of the sale, the director directly owned 7,399,771 shares of the company’s stock, valued at approximately $1,285,192,227.28. The trade was a 2.91% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 906,336 shares of company stock valued at $162,802,518 in the last 90 days. 3.94% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Krane Financial Solutions LLC acquired a new position in NVIDIA in the first quarter valued at about $299,000. Lavelle Capital LP acquired a new position in NVIDIA during the first quarter worth about $2,017,000. Challenger Wealth Management raised its stake in NVIDIA by 1.1% during the first quarter. Challenger Wealth Management now owns 21,427 shares of the computer hardware maker’s stock worth $3,737,000 after acquiring an additional 231 shares in the last quarter. Alpine Woods Capital Investors LLC raised its stake in NVIDIA by 252.4% during the first quarter. Alpine Woods Capital Investors LLC now owns 182,262 shares of the computer hardware maker’s stock worth $31,786,000 after acquiring an additional 130,547 shares in the last quarter. Finally, Allen Capital Group LLC raised its stake in NVIDIA by 3.9% during the first quarter. Allen Capital Group LLC now owns 80,770 shares of the computer hardware maker’s stock worth $14,086,000 after acquiring an additional 3,013 shares in the last quarter. Institutional investors and hedge funds own 65.27% of the company’s stock.

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.