NVIDIA (NASDAQ:NVDA) Trading Down 2.1% – Should You Sell?

NVIDIA Corporation (NASDAQ:NVDA) traded down 2.1% on Thursday . The company traded as low as $183.71 and last traded at $185.1620. 171,188,841 shares traded hands during mid-day trading, an increase of 3% from the average session volume of 166,485,547 shares. The stock had previously closed at $189.11.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: China may resume limited imports of Nvidia H200 chips for commercial use, which would reopen a large addressable market and boost revenue expectations if approvals continue. China to allow limited imports of Nvidia’s H200 chips, sources say
• Positive Sentiment: Product and platform momentum from CES — Rubin/Vera Rubin announcements and Nvidia’s push into rack-scale systems and physical-AI (robotaxi, Alpamayo models) strengthen the growth thesis and raise expectations for higher data-center spending. These launches help justify analyst bullishness on NVDA’s multi-year cadence. Nvidia Pulls The Timeline Forward: Why Rubin Changes The AI Game
• Positive Sentiment: Wall Street and sell-side firms remain constructive (several reiterated Buy ratings and raised targets after CES), supporting conviction that NVDA’s long-term earnings trajectory remains intact. Nvidia plans to double Israel workforce / analyst coverage
• Neutral Sentiment: Nvidia’s ecosystem wins and partner integrations (e.g., Microchip firmware for DGX, Lenovo gigafactory, customer deployments of B300/B300 Blackwell GPUs) broaden long-term demand but have gradual revenue translates; useful for structural growth but not an immediate earnings shock. Microchip firmware for MEC1723 to enhance NVIDIA DGX Spark
• Negative Sentiment: Conflicting China signals — local authorities have told firms to pause some H200 orders, and Nvidia is now asking Chinese customers for full upfront payment for H200 chips while approvals remain uncertain. That combination crimps near-term revenue visibility and raises counterparty/cancellation risk. Nvidia requires full upfront payment for H200 chips in China
• Negative Sentiment: Market sentiment and short‑term price action are being damped by the China uncertainty and valuation worries — several outlets note NVDA weakness amid mixed signals and some analysts warning about high valuations and heavy M&A/investment spending. That’s pressuring the stock despite strong fundamentals. Nvidia stock down as China uncertainty dampens sentiment

Analyst Ratings Changes

A number of research analysts recently commented on the company. Wells Fargo & Company reissued an “overweight” rating on shares of NVIDIA in a report on Monday, December 29th. DA Davidson reaffirmed a “buy” rating and set a $250.00 price objective on shares of NVIDIA in a report on Thursday, November 20th. Melius Research boosted their target price on shares of NVIDIA from $300.00 to $320.00 and gave the stock a “buy” rating in a report on Thursday, November 20th. Hsbc Global Res upgraded shares of NVIDIA from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, October 15th. Finally, Rothschild & Co Redburn raised their target price on shares of NVIDIA from $211.00 to $245.00 and gave the company a “buy” rating in a research note on Monday, November 17th. Five equities research analysts have rated the stock with a Strong Buy rating, forty-six have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and an average target price of $262.14.

NVIDIA Price Performance

The company has a market cap of $4.50 trillion, a P/E ratio of 45.95, a PEG ratio of 0.91 and a beta of 2.31. The firm’s 50-day moving average is $185.93 and its two-hundred day moving average is $179.21. The company has a debt-to-equity ratio of 0.06, a current ratio of 4.47 and a quick ratio of 3.71.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings data on Wednesday, November 19th. The computer hardware maker reported $1.30 EPS for the quarter, topping analysts’ consensus estimates of $1.23 by $0.07. NVIDIA had a net margin of 53.01% and a return on equity of 99.24%. The business had revenue of $57.01 billion during the quarter, compared to analysts’ expectations of $54.66 billion. During the same period last year, the company posted $0.81 EPS. The business’s revenue was up 62.5% on a year-over-year basis. Analysts anticipate that NVIDIA Corporation will post 2.77 earnings per share for the current year.

NVIDIA Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, December 26th. Shareholders of record on Thursday, December 4th were paid a dividend of $0.01 per share. This represents a $0.04 annualized dividend and a yield of 0.0%. The ex-dividend date of this dividend was Thursday, December 4th. NVIDIA’s payout ratio is presently 0.99%.

Insiders Place Their Bets

In related news, Director Mark A. Stevens sold 222,500 shares of the stock in a transaction on Friday, December 19th. The stock was sold at an average price of $180.17, for a total transaction of $40,087,825.00. Following the sale, the director owned 7,621,453 shares in the company, valued at approximately $1,373,157,187.01. This represents a 2.84% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CFO Colette Kress sold 30,500 shares of the stock in a transaction on Friday, December 12th. The shares were sold at an average price of $178.11, for a total transaction of $5,432,355.00. Following the completion of the sale, the chief financial officer directly owned 1,286,826 shares in the company, valued at approximately $229,196,578.86. This represents a 2.32% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 1,786,474 shares of company stock worth $326,293,242. 4.17% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NVIDIA

Several hedge funds have recently added to or reduced their stakes in NVDA. Kingstone Capital Partners Texas LLC grew its position in NVIDIA by 267,959.7% in the 2nd quarter. Kingstone Capital Partners Texas LLC now owns 382,373,765 shares of the computer hardware maker’s stock valued at $64,976,521,000 after acquiring an additional 382,231,120 shares during the last quarter. Norges Bank bought a new stake in shares of NVIDIA during the second quarter worth $51,386,863,000. Capital Research Global Investors boosted its stake in shares of NVIDIA by 16.1% during the third quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker’s stock valued at $30,855,564,000 after purchasing an additional 22,896,705 shares during the period. Laurel Wealth Advisors LLC grew its holdings in shares of NVIDIA by 15,496.1% in the second quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker’s stock worth $3,454,534,000 after purchasing an additional 21,725,326 shares during the last quarter. Finally, Amundi increased its stake in NVIDIA by 16.0% in the 1st quarter. Amundi now owns 135,770,043 shares of the computer hardware maker’s stock worth $13,826,199,000 after buying an additional 18,733,431 shares during the period. 65.27% of the stock is currently owned by institutional investors.

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.