NVIDIA (NASDAQ:NVDA) Trading Down 4.2% – Here’s Why

Shares of NVIDIA Corporation (NASDAQ:NVDA) fell 4.2% during mid-day trading on Friday . The stock traded as low as $176.38 and last traded at $177.19. 306,219,776 shares changed hands during trading, an increase of 70% from the average session volume of 180,133,172 shares. The stock had previously closed at $184.89.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Record quarter and blowout guidance reinforce demand for AI compute — NVDA reported huge revenue and EPS beats and guided to ~77% YoY growth for the April quarter, supporting the long‑term AI infrastructure thesis. NVIDIA’s AI Boom Isn’t Slowing After Blowout Q4
• Positive Sentiment: OpenAI funding and strategic partnerships broaden NVDA’s addressable market — NVDA joined Amazon and others in the massive OpenAI funding round, strengthening partner ties and demand visibility for GPUs. OpenAI’s $110B funding draws investment from Amazon, Nvidia
• Positive Sentiment: Analysts are raising targets — multiple firms lifted price targets and reiterated outperform/buy ratings after the report, giving intermediate upside support. CICC raises NVIDIA price target
• Neutral Sentiment: Valuation picture has shifted — several notes argue forward P/E and PEG have compressed, improving the valuation case even after the rally; that supports medium‑term buyers but doesn’t erase near‑term sentiment risk. Revisiting Comparative Valuations In Light Of NVIDIA’s Earnings (Upgrade)
• Negative Sentiment: “Sell‑the‑news” and rotation pressure pushed shares down — coverage notes that despite the beat the market punished NVDA as expectations were already priced in; investors are rotating out of mega‑cap AI names. Wall Street Roundup: Nvidia Beats And Drops In Edgy Market
• Negative Sentiment: Competition and customer choices are being watched closely — reports highlight hyperscalers exploring alternatives/custom silicon (and AMD/other wins), raising fears growth could face margin/market‑share pressure over time. Nvidia wraps up tough week as investors focus on competition
• Negative Sentiment: Production and segment headwinds — Nvidia warns gaming GPU shortages may persist through year‑end and supply constraints/China export dynamics add execution risk that can temper near‑term upside. Nvidia expects gaming chips shortage to last until year-end

Analyst Ratings Changes

Several analysts have recently weighed in on NVDA shares. Citigroup raised their price objective on shares of NVIDIA from $270.00 to $300.00 and gave the stock a “buy” rating in a report on Thursday. Tigress Financial reiterated a “strong-buy” rating and issued a $350.00 price objective (up from $280.00) on shares of NVIDIA in a research report on Thursday, December 18th. Oppenheimer restated an “outperform” rating and set a $265.00 target price on shares of NVIDIA in a report on Thursday. Sanford C. Bernstein upped their price target on shares of NVIDIA from $275.00 to $300.00 and gave the stock an “outperform” rating in a research report on Thursday. Finally, Stifel Nicolaus set a $250.00 price objective on shares of NVIDIA in a report on Thursday, January 8th. Four equities research analysts have rated the stock with a Strong Buy rating, forty-seven have issued a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Buy” and a consensus price target of $271.86.

NVIDIA Stock Down 4.2%

The firm’s 50-day simple moving average is $186.51 and its 200 day simple moving average is $183.89. The company has a debt-to-equity ratio of 0.06, a quick ratio of 3.71 and a current ratio of 4.47. The company has a market cap of $4.31 trillion, a P/E ratio of 36.16, a PEG ratio of 0.57 and a beta of 2.31.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data on Wednesday, February 25th. The computer hardware maker reported $1.62 EPS for the quarter, beating analysts’ consensus estimates of $1.54 by $0.08. NVIDIA had a return on equity of 110.96% and a net margin of 55.60%.The business had revenue of $68.13 billion during the quarter, compared to the consensus estimate of $65.56 billion. During the same quarter in the prior year, the company posted $0.89 earnings per share. The firm’s revenue was up 73.2% on a year-over-year basis. On average, research analysts forecast that NVIDIA Corporation will post 2.77 earnings per share for the current fiscal year.

NVIDIA Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Wednesday, March 11th will be issued a $0.01 dividend. The ex-dividend date is Wednesday, March 11th. This represents a $0.04 annualized dividend and a yield of 0.0%. NVIDIA’s dividend payout ratio (DPR) is 0.99%.

Insider Buying and Selling

In other NVIDIA news, CFO Colette Kress sold 30,500 shares of the business’s stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $178.11, for a total value of $5,432,355.00. Following the completion of the transaction, the chief financial officer directly owned 1,286,826 shares of the company’s stock, valued at approximately $229,196,578.86. The trade was a 2.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Mark A. Stevens sold 350,000 shares of the firm’s stock in a transaction dated Friday, December 5th. The stock was sold at an average price of $181.73, for a total value of $63,605,500.00. Following the sale, the director directly owned 7,049,803 shares in the company, valued at approximately $1,281,160,699.19. This represents a 4.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,610,848 shares of company stock worth $291,619,375 over the last ninety days. Insiders own 4.17% of the company’s stock.

Institutional Trading of NVIDIA

Several hedge funds have recently bought and sold shares of the stock. Center for Financial Planning Inc. raised its holdings in NVIDIA by 4.6% during the second quarter. Center for Financial Planning Inc. now owns 8,429 shares of the computer hardware maker’s stock valued at $1,332,000 after buying an additional 367 shares in the last quarter. Atria Investments Inc increased its holdings in shares of NVIDIA by 3.2% during the 2nd quarter. Atria Investments Inc now owns 942,208 shares of the computer hardware maker’s stock valued at $148,859,000 after acquiring an additional 29,479 shares during the last quarter. Svenska Handelsbanken AB publ bought a new position in shares of NVIDIA in the 3rd quarter valued at approximately $37,316,000. Oak Ridge Investments LLC lifted its holdings in NVIDIA by 2.2% in the 3rd quarter. Oak Ridge Investments LLC now owns 970,860 shares of the computer hardware maker’s stock worth $181,143,000 after purchasing an additional 20,559 shares during the last quarter. Finally, Whalen Wealth Management Inc. boosted its position in NVIDIA by 20.3% during the third quarter. Whalen Wealth Management Inc. now owns 36,490 shares of the computer hardware maker’s stock worth $6,808,000 after purchasing an additional 6,162 shares during the period. 65.27% of the stock is currently owned by institutional investors and hedge funds.

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.