NVIDIA (NASDAQ:NVDA) Shares Down 1.3% – Here’s What Happened

NVIDIA Corporation (NASDAQ:NVDA)’s share price was down 1.3% during trading on Monday. The stock traded as low as $224.90 and last traded at $226.32. Approximately 69,699,607 shares were traded during mid-day trading, a decline of 54% from the average session volume of 152,120,516 shares. The stock had previously closed at $229.28.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s AI ecosystem continues to expand. LSEG is using NVIDIA GPUs to accelerate analysis of its massive Tick History market-data set, while collaborations involving ChipAgents, Lam Research and other semiconductor companies extend NVIDIA software into chip design and manufacturing. LSEG teams up with NVIDIA for faster market data processing
• Positive Sentiment: New technology announcements, including the cuPotential CUDA-X library and NanoVDB improvements, could deepen NVIDIA’s software moat by making GPU-accelerated scientific and semiconductor workflows faster. The company is also reportedly considering a larger investment in Reflection AI, which could strengthen its position in open-weight models and agentic software, although the talks remain speculative. NVIDIA and Reflection AI
• Positive Sentiment: Analysts remain bullish on the long-term AI infrastructure cycle, citing supply constraints, rising hyperscaler capital expenditures, the Vera Rubin production ramp and NVIDIA’s substantial buyback authorization. A key technical indicator also suggests the stock is holding a short-term support level.
• Positive Sentiment: NVIDIA announced a five-year, $250 million compute commitment for U.K. AI safety and security research. Although primarily strategic rather than a near-term revenue driver, the initiative may strengthen NVIDIA’s relationships with governments, universities and developers. NVIDIA U.K. AI safety commitment
• Neutral Sentiment: NVIDIA’s partnership with Navitas on a 24-kilowatt, high-efficiency power-delivery board supports denser AI data centers, but the immediate financial benefit is more relevant to Navitas than to NVIDIA.
• Negative Sentiment: Investors are increasingly debating whether AI infrastructure spending can generate adequate returns. Michael Burry is betting against the Nasdaq and chip stocks, arguing that customers may struggle to monetize expensive AI capacity. Competition from AMD, Intel’s lower-cost inference GPUs, custom accelerators and Huawei’s gains in China adds to the risk.
• Negative Sentiment: Reports that NVIDIA’s China AI-chip market share has fallen to 34% as Huawei gains ground highlight export restrictions and regional competition. Congressional and insider sales—including a newly disclosed NVDA sale by Representative Daniel Meuser—may also weigh on sentiment, though these transactions are not necessarily fundamental signals.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on NVDA shares. Stifel Nicolaus set a $315.00 price objective on NVIDIA in a report on Thursday, August 27th. HSBC lifted their price objective on shares of NVIDIA from $360.00 to $365.00 in a report on Thursday, August 27th. Needham & Company LLC reiterated a “buy” rating and set a $300.00 target price on shares of NVIDIA in a report on Friday, September 4th. Truist Financial raised their price target on shares of NVIDIA from $307.00 to $346.00 and gave the company a “buy” rating in a research report on Thursday, August 27th. Finally, Phillip Securities upped their price target on NVIDIA from $285.00 to $300.00 and gave the stock a “buy” rating in a report on Monday, August 31st. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Buy” and an average price target of $321.89.

NVIDIA Stock Down 3.2%

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 firm’s 50 day moving average price is $223.39 and its two-hundred day moving average price is $210.37. The firm has a market cap of $5.33 trillion, a price-to-earnings ratio of 27.91, a P/E/G ratio of 1.75 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.13. The company had revenue of $96.22 billion for the quarter, compared to analysts’ expectations of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. NVIDIA’s revenue was up 105.9% compared to the same quarter last year. During the same period in the previous year, the company posted $1.05 EPS. As a group, sell-side analysts forecast that NVIDIA Corporation will post 9.25 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Shareholders 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 dividend on an annualized basis and a yield of 0.5%. NVIDIA’s payout ratio is presently 12.64%.

NVIDIA announced that its board has approved a stock repurchase plan on Monday, September 28th that allows the company to buy back $150.00 billion in shares. This repurchase authorization allows the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Stock repurchase plans are usually a sign that the company’s management believes its shares are undervalued.

Insider Buying and Selling at NVIDIA

In other NVIDIA news, CFO Colette Kress sold 34,918 shares of the firm’s stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $219.05, for a total value of $7,648,787.90. Following 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 position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the completion of the sale, the director owned 2,336,531 shares of the company’s stock, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 1,766,118 shares of company stock worth $399,450,353. 3.94% of the stock is owned by insiders.

Hedge Funds Weigh In On NVIDIA

Hedge funds have recently made changes to their positions in the business. State Street Corp increased its stake in NVIDIA by 1.6% in the second 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. Bank of America Corp DE raised its position in NVIDIA by 2.2% in the second quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker’s stock worth $39,090,956,000 after purchasing an additional 4,165,875 shares in the last quarter. Invesco Ltd. raised its position in NVIDIA by 0.3% in the fourth quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker’s stock worth $26,714,167,000 after purchasing an additional 446,178 shares in the last quarter. Amundi lifted its stake in NVIDIA by 10.4% during the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after purchasing an additional 12,575,177 shares during the period. Finally, J. Stern & Co. LLP lifted its stake in NVIDIA by 13,709.1% during the fourth quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock worth $23,454,297,000 after purchasing an additional 124,849,603 shares during the period. Hedge funds and other institutional investors own 65.27% of the company’s stock.

About NVIDIA

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.