NVIDIA (NASDAQ:NVDA) Stock Price Down 2.2% – Should You Sell?

NVIDIA Corporation (NASDAQ:NVDA)’s share price traded down 2.2% during trading on Friday . The stock traded as low as $197.97 and last traded at $202.81. Approximately 143,597,675 shares were traded during trading, a decline of 14% from the average session volume of 166,893,609 shares. The stock had previously closed at $207.40.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA expanded its AI footprint in Japan through new partnerships with major companies and institutions, including work on a national AI infrastructure project and an AI factory. The company also unveiled new AI and robotics tools, reinforcing its leadership in physical AI and potentially opening additional long-term revenue streams. Article Title
• Positive Sentiment: KeyCorp and Erste Group Bank raised earnings estimates for NVIDIA, signaling Wall Street still sees strong profit growth ahead and keeping valuation support in place. Higher forecasts can help offset some of the recent selling pressure.
• Positive Sentiment: Multiple articles highlighted NVIDIA’s continued importance in AI infrastructure, robotics, and cloud partnerships, including a new NVIDIA Cloud Partner addition and broader adoption of its Nemotron models in Japan. That suggests demand for NVIDIA’s ecosystem remains healthy.
• Neutral Sentiment: Apple briefly passed NVIDIA to become the world’s most valuable company, reflecting a shift in investor sentiment within mega-cap tech rather than a direct deterioration in NVIDIA’s fundamentals.
• Neutral Sentiment: Recent headlines about AI capex fears, a semiconductor sector pullback, and concerns about in-house silicon from rivals like Google and Amazon are weighing on the stock market’s mood toward chips generally.
• Negative Sentiment: NVIDIA stock is being hit by a broader selloff in semiconductor shares as investors rotate away from chip names, and some market commentary suggests the stock may be vulnerable to “sell-the-news” reactions despite strong business updates.
• Negative Sentiment: Some bearish commentary argues that investors are worried AI spending could eventually normalize, creating valuation risk for NVIDIA after its huge run.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on NVDA. Bank of America reissued a “buy” rating and issued a $350.00 target price (up from $320.00) on shares of NVIDIA in a research report on Thursday, May 21st. Wall Street Zen downgraded shares of NVIDIA from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 4th. Rosenblatt Securities reiterated a “buy” rating and issued a $325.00 price target on shares of NVIDIA in a research note on Thursday, May 21st. Barclays restated an “overweight” rating on shares of NVIDIA in a research report on Thursday, May 21st. Finally, Sanford C. Bernstein restated a “buy” rating on shares of NVIDIA in a report on Monday, June 29th. Two investment analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $304.26.

NVIDIA Trading Down 2.2%

The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The company has a market capitalization of $4.91 trillion, a P/E ratio of 31.06, a PEG ratio of 0.47 and a beta of 2.21. The stock has a fifty day moving average of $209.88 and a 200 day moving average of $195.05.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company had revenue of $81.61 billion during the quarter, compared to the consensus estimate of $78.42 billion. During the same period in the previous year, the company posted $0.81 EPS. The firm’s revenue was up 85.2% on a year-over-year basis. As a group, equities research analysts anticipate that NVIDIA Corporation will post 8.8 EPS for the current fiscal year.

NVIDIA Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Thursday, June 4th were given a $0.25 dividend. The ex-dividend date was Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is presently 15.31%.

NVIDIA declared that its board has authorized a share repurchase program on Wednesday, May 20th that allows the company to repurchase $80.00 billion in shares. This repurchase authorization allows the computer hardware maker to reacquire up to 1.5% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling

In related news, Director Stephen C. Neal sold 15,500 shares of NVIDIA stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the sale, the director owned 116,135 shares of the company’s stock, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Mark A. Stevens sold 885,000 shares of the business’s stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the transaction, the director directly owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. This represents a 14.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 1,901,125 shares of company stock worth $410,583,015. 3.94% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On NVIDIA

Hedge funds and other institutional investors have recently modified their holdings of the stock. Winthrop Advisory Group LLC boosted its holdings in shares of NVIDIA by 21.3% during the 2nd quarter. Winthrop Advisory Group LLC now owns 42,201 shares of the computer hardware maker’s stock valued at $8,444,000 after purchasing an additional 7,398 shares during the last quarter. Mcrae Capital Management Inc. increased its holdings in shares of NVIDIA by 7.1% in the second quarter. Mcrae Capital Management Inc. now owns 4,513 shares of the computer hardware maker’s stock worth $903,000 after purchasing an additional 300 shares during the last quarter. AAF Wealth Management LLC lifted its position in shares of NVIDIA by 3.8% in the second quarter. AAF Wealth Management LLC now owns 5,995 shares of the computer hardware maker’s stock worth $1,200,000 after buying an additional 222 shares in the last quarter. HM Payson & Co. lifted its position in shares of NVIDIA by 1.7% in the second quarter. HM Payson & Co. now owns 1,740,693 shares of the computer hardware maker’s stock worth $348,295,000 after buying an additional 29,312 shares in the last quarter. Finally, Cary Street Partners Investment Advisory LLC boosted its stake in NVIDIA by 10.2% during the second quarter. Cary Street Partners Investment Advisory LLC now owns 60,300 shares of the computer hardware maker’s stock valued at $12,065,000 after buying an additional 5,606 shares during the last quarter. Institutional investors own 65.27% of the company’s stock.

About NVIDIA

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.