NVIDIA (NASDAQ:NVDA) Stock Falls 1.3% Following Analyst Downgrade

Shares of NVIDIA Corporation (NASDAQ:NVDA) dropped 1.3% on Monday after Melius Research lowered their price target on the stock from $420.00 to $315.00. Melius Research currently has a buy rating on the stock. NVIDIA traded as low as $201.66 and last traded at $202.06. Approximately 117,124,909 shares traded hands during trading, a decline of 21% from the average session volume of 148,662,906 shares. The stock had previously closed at $204.64.

Other equities analysts have also recently issued reports about the stock. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of NVIDIA in a research report on Monday, August 31st. Phillip Securities lifted their target price on shares of NVIDIA from $285.00 to $300.00 and gave the company a “buy” rating in a research report on Monday, August 31st. BNP Paribas Exane reissued an “outperform” rating and set a $345.00 target price on shares of NVIDIA in a research note on Monday, October 5th. Jefferies Financial Group restated a “buy” rating on shares of NVIDIA in a research report on Wednesday, August 26th. Finally, Evercore set a $465.00 price target on shares of NVIDIA and gave the company an “outperform” rating in a research note on Thursday, August 27th. Five research analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and one has assigned 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 $319.45.

Insider Activity

In related news, EVP Timothy S. Teter sold 30,460 shares of the company’s stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $222.80, for a total value of $6,786,488.00. Following the transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at approximately $598,810,648. This represents a 1.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the stock in a transaction that occurred on 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 completion of the transaction, the director owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,766,118 shares of company stock valued at $399,450,353 in the last 90 days. Company insiders own 3.94% of the company’s stock.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Analysts expect another strong quarterly report. NVIDIA has a history of exceeding estimates, and its roughly $108 billion revenue outlook for the upcoming quarter could be surpassed as hyperscaler AI spending remains robust. The next earnings report, expected around November 17, is viewed as a potential catalyst. Will Nvidia Beat Estimates Again in Its Next Earnings Report?
• Positive Sentiment: Big technology companies continue to increase capital spending on data centers, supporting demand for NVIDIA GPUs, networking products, and related infrastructure. Articles also point to possible long-term demand from SpaceX’s planned AI data centers, although those projections remain speculative. Nvidia: SpaceX Offers an Ignored Bonus
• Positive Sentiment: NVIDIA and AMD joined a $700 million financing round for AI startup Hark, valuing the company at $6 billion. The investment could provide strategic exposure to consumer AI, though it is not an immediate earnings driver. Nvidia and AMD Are Backing a $6 Billion AI Startup
• Neutral Sentiment: Melius Research reduced its NVIDIA price target from $420 to $315 but retained a “buy” rating. The lower target reflects a more cautious valuation view, while still implying substantial upside from current levels. Melius Research NVIDIA Rating
• Negative Sentiment: Some investors remain concerned that AI infrastructure spending could slow, and one market veteran has reportedly reduced most of his NVIDIA position. NVIDIA’s chart also remains technically weak after its recent decline, potentially encouraging additional selling. Wall Street Veteran Warns of an AI Spending Slowdown
• Negative Sentiment: Concerns over NVIDIA’s valuation and rising supply commitments, inventory, and receivables add balance-sheet risk even if demand remains strong. Competition from AMD and the rapid rise of AI startups such as Anthropic also raises questions about how durable NVIDIA’s exceptional growth and margins will be. Nvidia Q3 FY2027 Preview

Institutional Trading of NVIDIA

Several hedge funds have recently made changes to their positions in NVDA. Genesis Private Wealth LLC boosted its holdings in shares of NVIDIA by 1.3% in the third quarter. Genesis Private Wealth LLC now owns 18,347 shares of the computer hardware maker’s stock valued at $4,190,000 after acquiring an additional 242 shares during the period. Gutierrez Wealth Advisory LLC increased its holdings in shares of NVIDIA by 71.3% in the 3rd quarter. Gutierrez Wealth Advisory LLC now owns 2,988 shares of the computer hardware maker’s stock valued at $682,000 after acquiring an additional 1,244 shares during the period. Brady Family Wealth LLC raised its position in NVIDIA by 14.2% in the 3rd quarter. Brady Family Wealth LLC now owns 32,647 shares of the computer hardware maker’s stock valued at $7,456,000 after purchasing an additional 4,048 shares during the last quarter. Capstone Wealth Management LLC raised its position in NVIDIA by 4.4% in the 3rd quarter. Capstone Wealth Management LLC now owns 14,503 shares of the computer hardware maker’s stock valued at $3,312,000 after purchasing an additional 611 shares during the last quarter. Finally, Quest 10 Wealth Builders Inc. raised its position in NVIDIA by 22.7% in the 3rd quarter. Quest 10 Wealth Builders Inc. now owns 8,558 shares of the computer hardware maker’s stock valued at $1,861,000 after purchasing an additional 1,586 shares during the last quarter. Institutional investors and hedge funds own 65.27% of the company’s stock.

NVIDIA Stock Performance

The stock has a market cap of $4.87 trillion, a price-to-earnings ratio of 25.54, a PEG ratio of 1.57 and a beta of 2.21. The stock’s 50 day moving average is $221.74 and its two-hundred day moving average is $204.24. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14.

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

NVIDIA Dividend Announcement

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

NVIDIA announced that its board has approved a stock buyback plan on Monday, September 28th that authorizes the company to repurchase $150 billion in shares. This buyback authorization authorizes the computer hardware maker to buy up to 2.8% of its stock through open market purchases. Share buyback plans are typically a sign that the company’s leadership believes its stock is undervalued.

NVIDIA Company Profile

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.