NVIDIA Corporation (NASDAQ:NVDA – Get Free Report)’s stock price fell 9.3% during mid-day trading on Thursday. The stock traded as low as $181.46 and last traded at $181.60. 300,814,832 shares were traded during trading, an increase of 102% from the average session volume of 148,900,359 shares. The stock had previously closed at $200.13.
Key Headlines Impacting NVIDIA
Here are the key news stories impacting NVIDIA this week:
- Positive Sentiment: Some investors see the decline as a buying opportunity, citing NVIDIA’s strong AI-chip position and profitability. ARK Invest also reportedly added $45.9 million of NVDA shares during the sell-off. Nvidia Stock Rises on Dip-Buying: 3 Reasons to Be Optimistic
- Positive Sentiment: CEO Jensen Huang says the next-generation Vera Rubin platform could generate more revenue per gigawatt of data-center capacity than the current platform, supporting the case for continued growth. Jensen Huang Says Nvidia’s Next-Gen Vera Rubin Chips Will Generate $40 Billion in Revenue per Gigawatt
- Neutral Sentiment: NVIDIA’s upcoming Nov. 17 results are a key near-term catalyst: investors will look for evidence that demand and guidance can ease fears about AI spending and justify the stock’s recovery. Nvidia Investors Need to Be Paying Attention on Nov. 17
- Negative Sentiment: The rebound follows a steep sell-off that wiped roughly $450 billion from NVIDIA’s market value. Investors are worried that a Democratic-led Congress, data-center permitting or regulatory hurdles, high capital costs, and uncertain returns could delay infrastructure projects and weaken future chip demand. AI stocks hammered by midterm shock as data center buildout becomes a ‘war of attrition’
- Negative Sentiment: Reports that NVIDIA may be taking on greater exposure to financially strained “neocloud” customers raise concern that it could face risks beyond selling chips if those providers struggle to fund data centers. As neoclouds face a financial reckoning, Nvidia has to decide how far to go to help
Wall Street Analyst Weigh In
NVDA has been the subject of several recent research reports. Raymond James Financial set a $515.00 target price on shares of NVIDIA and gave the company a “strong-buy” rating in a report on Thursday, August 27th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of NVIDIA in a report on Monday, August 31st. Rosenblatt Securities reiterated a “buy” rating and issued a $390.00 price target on shares of NVIDIA in a research report on Tuesday, September 29th. Wall Street Zen cut shares of NVIDIA from a “strong-buy” rating to a “buy” rating in a research note on Saturday, October 24th. Finally, KeyCorp restated an “overweight” rating and set a $330.00 price objective on shares of NVIDIA in a research report on Monday, August 24th. Five research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, NVIDIA has an average rating of “Buy” and an average target price of $318.85.
Get Our Latest Report on NVIDIA
NVIDIA Stock Performance
The company has a market capitalization of $4.50 trillion, a PE ratio of 23.60, a price-to-earnings-growth ratio of 1.55 and a beta of 2.21. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The stock’s fifty day simple moving average is $219.80 and its 200-day simple moving average is $204.53.
NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its quarterly earnings results 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 business 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% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.05 earnings per share. As a group, equities analysts predict that NVIDIA Corporation will post 9.30 earnings per share for the current year.
NVIDIA Announces Dividend
The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA’s dividend payout ratio is currently 12.64%.
NVIDIA declared that its Board of Directors has authorized a share repurchase program on Monday, September 28th that allows the company to buy back $150 billion in outstanding shares. This buyback authorization allows the computer hardware maker to buy up to 2.8% of its stock through open market purchases. Share buyback programs are typically an indication that the company’s board believes its shares are undervalued.
Insider Transactions at NVIDIA
In related news, Director Mark A. Stevens sold 622,239 shares of the stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the transaction, the director directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, EVP Timothy S. Teter sold 30,460 shares of the firm’s stock in a transaction dated 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 completion of the sale, the executive vice president directly owned 2,687,660 shares in the company, valued at approximately $598,810,648. The trade was a 1.12% 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. Insiders have sold 1,766,118 shares of company stock worth $399,450,353 over the last quarter. 3.94% of the stock is currently owned by insiders.
Institutional Inflows and Outflows
A number of institutional investors and hedge funds have recently modified their holdings of NVDA. Rasp Wealth Solutions LLC grew its stake in shares of NVIDIA by 54.3% during the 3rd quarter. Rasp Wealth Solutions LLC now owns 5,534 shares of the computer hardware maker’s stock valued at $1,264,000 after buying an additional 1,948 shares during the period. Mawer Investment Management Ltd. raised its position in shares of NVIDIA by 0.6% in the 3rd quarter. Mawer Investment Management Ltd. now owns 3,097,902 shares of the computer hardware maker’s stock worth $707,499,000 after buying an additional 19,326 shares during the period. MSH Capital Advisors LLC raised its position in shares of NVIDIA by 322.5% in the 3rd quarter. MSH Capital Advisors LLC now owns 132,163 shares of the computer hardware maker’s stock worth $30,444,000 after buying an additional 100,879 shares during the period. Cornerstone Advisory LLC raised its position in shares of NVIDIA by 8.1% in the 3rd quarter. Cornerstone Advisory LLC now owns 82,245 shares of the computer hardware maker’s stock worth $18,783,000 after buying an additional 6,166 shares during the period. Finally, Condor Capital Management boosted its holdings in NVIDIA by 10.9% in the third quarter. Condor Capital Management now owns 4,278 shares of the computer hardware maker’s stock valued at $977,000 after acquiring an additional 421 shares during the last quarter. Institutional investors and hedge funds own 65.27% of the company’s stock.
About NVIDIA
NVIDIA Corporation develops graphics processing units (GPUs), accelerated computing platforms and related software. Founded in 1993, the company first became widely known for GPUs used in PC gaming and professional graphics. Its technology now also supports artificial intelligence, scientific computing and other data-intensive applications.
NVIDIA’s offerings include GeForce products for gaming, data-center GPUs and systems for AI workloads, and networking products that connect computing infrastructure.
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