NVIDIA (NASDAQ:NVDA) Shares Down 2.9% – What’s Next?

NVIDIA Corporation (NASDAQ:NVDA) fell 2.9% during trading on Monday . The company traded as low as $207.25 and last traded at $208.48. 131,755,300 shares were traded during trading, a decline of 17% from the average session volume of 158,708,922 shares. The stock had previously closed at $214.72.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Strong AI demand and new products: Analysts expect roughly 99% earnings growth, with data-center demand supporting revenue. NVIDIA also announced that its Groq 3 LPX inference accelerator is in full production, delivering record benchmark speeds and securing Nebius as an early adopter. NVIDIA Groq 3 LPX production announcement
• Positive Sentiment: Additional customer validation: SpaceXAI is adopting NVIDIA’s Vera CPU for large-scale agentic AI applications, reinforcing the company’s position across data-center and emerging satellite-computing markets. SpaceXAI adopts NVIDIA Vera CPU
• Positive Sentiment: Analysts remain bullish: Rosenblatt, KeyBanc and Cantor Fitzgerald reaffirmed positive ratings with price targets ranging from $325 to $350, while several commentators argue investors are underestimating NVIDIA’s AI opportunity.
• Neutral Sentiment: Earnings risk is unusually high: Options markets imply a substantial post-earnings move, and a strong report may already be reflected in the valuation. Investors will closely watch revenue guidance, Rubin shipments, China exposure and the outlook for AI spending.
• Neutral Sentiment: Perplexity investment under discussion: NVIDIA is reportedly considering participating in a funding round valuing AI search startup Perplexity above $30 billion. The deal could deepen NVIDIA’s ecosystem reach but would add to scrutiny of its expanding AI investments. NVIDIA Perplexity investment report
• Negative Sentiment: Higher system prices raise demand concerns: Customers are reportedly being warned of price increases exceeding 15% for systems containing Blackwell and Rubin chips, driven by soaring memory costs. While higher prices could lift revenue, they may pressure customer budgets and relationships. NVIDIA customer price hike report
• Negative Sentiment: Capital-allocation risks are increasing: Critics are concerned about NVIDIA’s large AI-lab investments, financing commitments and reported guarantees, which could make results more sensitive to the financial health of AI customers and partners.
• Negative Sentiment: Export-control concerns: Taiwan indicted nine people, including alleged NVIDIA employees, over suspected illegal exports of AI servers to China. The case highlights continuing regulatory and supply-chain risks. Taiwan AI server export indictment
• Negative Sentiment: Broader market pressure: Technology and semiconductor stocks pulled back, while rising yields and seasonal concerns weighed on the AI trade. NVIDIA’s valuation and extended losing streak have amplified pre-earnings volatility.

Wall Street Analyst Weigh In

Several brokerages have commented on NVDA. Rosenblatt Securities reiterated a “buy” rating and set a $325.00 price target on shares of NVIDIA in a report on Monday. The Goldman Sachs Group restated a “buy” rating on shares of NVIDIA in a research note on Tuesday, August 11th. Wedbush upped their price objective on shares of NVIDIA from $300.00 to $330.00 and gave the stock an “outperform” rating in a report on Thursday, May 21st. Wolfe Research reiterated an “outperform” rating and issued a $275.00 target price on shares of NVIDIA in a research note on Thursday, May 21st. Finally, Royal Bank Of Canada reissued an “outperform” rating and set a $300.00 target price on shares of NVIDIA in a research report on Thursday. Three investment analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average target price of $308.01.

NVIDIA Price Performance

The stock has a market cap of $5.05 trillion, a price-to-earnings ratio of 31.93, a P/E/G ratio of 0.42 and a beta of 2.23. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The stock’s 50 day simple moving average is $207.47 and its two-hundred day simple moving average is $199.62.

NVIDIA declared that its Board of Directors has approved a stock repurchase program 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 repurchase up to 1.5% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.

Insider Transactions at NVIDIA

In other NVIDIA news, Director Stephen C. Neal sold 15,500 shares of the stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total value of $3,343,815.00. Following the transaction, the director directly owned 116,135 shares in the company, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director John Dabiri sold 625 shares of NVIDIA stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total value of $133,750.00. Following the completion of the sale, the director owned 14,163 shares of the company’s stock, valued at approximately $3,030,882. The trade was a 4.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 1,901,125 shares of company stock worth $410,583,015. Insiders own 3.94% of the company’s stock.

Hedge Funds Weigh In On NVIDIA

Several hedge funds have recently added to or reduced their stakes in the stock. Montgomery Financial Services LLC acquired a new position in NVIDIA during the second quarter valued at approximately $28,000. Lifetime Wealth Management P.C. bought a new stake in shares of NVIDIA during the 4th quarter worth approximately $26,000. Longview Financial Advisors Inc. acquired a new stake in shares of NVIDIA in the 1st quarter valued at approximately $27,000. Longfellow Investment Management Co. LLC grew its stake in shares of NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after buying an additional 67 shares in the last quarter. Finally, Phillip James Consulting Co. bought a new position in shares of NVIDIA in the first quarter valued at $40,000. Institutional investors and hedge funds own 65.27% of the company’s stock.

NVIDIA Company Profile

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.