NVIDIA (NASDAQ:NVDA) Stock Falls 1.2% – Here’s What Happened

NVIDIA Corporation (NASDAQ:NVDA) shares were down 1.2% during trading on Wednesday. The stock traded as low as $214.47 and last traded at $215.38. Approximately 89,765,552 shares were traded during mid-day trading, a decline of 40% from the average session volume of 148,949,234 shares. The stock had previously closed at $217.94.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s strong earnings, expanding margins and outlook for roughly 70% revenue growth in fiscal 2028 continue to support the bullish case. Analysts argue that AI demand remains supply-constrained and that the company’s latest guidance exceeded expectations. NVIDIA’s AI Dominance Could Have Further to Run
• Positive Sentiment: The company is broadening its role beyond GPUs by offering complete AI-factory architectures, networking, software and edge systems. Expanded collaborations with Microsoft, Meta, Oracle and other partners could increase NVIDIA’s share of customers’ overall AI infrastructure budgets. How AI Factory Expansion Will Impact NVIDIA Investors
• Positive Sentiment: Commentary highlighting AI demand, pricing power and NVIDIA’s strategic investments in networking, software and AI companies provides potential long-term catalysts. Wall Street analyst sentiment remains broadly favorable despite the recent correction. NVIDIA Stock: Analyst Estimates and Ratings

Analyst Ratings Changes

NVDA has been the subject of a number of recent research reports. Rothschild & Co Redburn lifted their price target on shares of NVIDIA from $300.00 to $325.00 in a report on Thursday, August 27th. The Goldman Sachs Group reaffirmed a “buy” rating on shares of NVIDIA in a report on Wednesday, October 21st. Daiwa Securities Group decreased their price target on shares of NVIDIA from $255.00 to $245.00 and set an “outperform” rating for the company in a research note on Thursday, September 17th. China Renaissance increased their price objective on NVIDIA from $319.00 to $330.00 and gave the company a “buy” rating in a research note on Monday, August 31st. Finally, Jefferies Financial Group reissued a “buy” rating on shares of NVIDIA in a report on Wednesday, August 26th. Five analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, NVIDIA currently has an average rating of “Buy” and a consensus target price of $321.47.

NVIDIA Stock Performance

The company has a market capitalization of $4.93 trillion, a price-to-earnings ratio of 25.87, a PEG ratio of 1.65 and a beta of 2.22. The firm’s fifty day simple moving average is $221.99 and its 200 day simple moving average is $204.15. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. The company had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company’s quarterly revenue was up 105.9% on a year-over-year basis. During the same period in the prior year, the business posted $1.05 EPS. On average, sell-side analysts forecast that NVIDIA Corporation will post 9.30 EPS for the current year.

NVIDIA Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were given a dividend of $0.25 per share. The ex-dividend date was Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA’s payout ratio is 12.64%.

NVIDIA announced that its Board of Directors has initiated a share repurchase plan on Monday, September 28th that authorizes the company to repurchase $150 billion in shares. This buyback authorization authorizes the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Share buyback plans are usually an indication that the company’s management believes its shares are undervalued.

Insider Transactions at NVIDIA

In other NVIDIA news, Director Mark Stevens sold 622,239 shares of NVIDIA stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the transaction, the director owned 2,336,531 shares in the company, valued at $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Colette Kress sold 34,918 shares of the firm’s stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the sale, the chief financial officer owned 765,103 shares in the company, valued at approximately $167,595,812.15. This represents a 4.36% decrease in their position. 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. In the last 90 days, insiders have sold 1,766,118 shares of company stock valued at $399,450,353. 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 modified their holdings of the business. Intelligent Financial Strategies bought a new position in NVIDIA in the third quarter valued at approximately $26,000. Longview Financial Advisors Inc. acquired a new stake in NVIDIA during the first quarter worth approximately $27,000. Montgomery Financial Services LLC bought a new stake in NVIDIA in the 2nd quarter worth about $28,000. Langley Wealth Management LLC bought a new position in shares of NVIDIA during the 2nd quarter worth $34,000. Finally, Newton One Investments LLC bought a new stake in NVIDIA during the third quarter valued at $34,000. Institutional investors own 65.27% of the company’s stock.

About NVIDIA

NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.

The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.