NVIDIA (NASDAQ:NVDA) Trading Down 1.5% – Here’s Why

Shares of NVIDIA Corporation (NASDAQ:NVDA) traded down 1.5% during mid-day trading on Tuesday . The company traded as low as $215.10 and last traded at $217.44. Approximately 106,848,620 shares changed hands during trading, a decline of 33% from the average session volume of 159,202,031 shares. The stock had previously closed at $220.78.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s $3.5 billion convertible-bond investment in MediaTek expands its reach beyond hyperscale data centers. The companies will integrate NVIDIA’s NVLink Fusion technology with MediaTek’s custom chips for cloud infrastructure, local AI and automotive applications, helping NVIDIA defend its ecosystem against custom silicon from major customers. NVIDIA’s MediaTek Bet Shows How It Plans to Defend Its AI Moat
• Positive Sentiment: Anthropic reportedly signed a $35 billion cloud-computing agreement with NVIDIA-backed Lambda. The deal points to substantial demand for NVIDIA-powered capacity and broadening AI infrastructure spending, although the arrangement also intensifies scrutiny of financial links among chipmakers, cloud providers and AI developers. Anthropic signs $35 billion cloud deal with Nvidia-backed Lambda
• Positive Sentiment: Recent results remain a powerful fundamental support: quarterly revenue reached about $96.2 billion, up 105.9% year over year, while earnings exceeded estimates. Management’s reported outlook for roughly 70% fiscal 2028 revenue growth and continued Vera Rubin demand has prompted several analysts to raise price targets. Should NVIDIA Stock Be in Your Portfolio Post Solid Q2 Earnings?
• Neutral Sentiment: NVIDIA is reportedly working to counter custom AI accelerators by reviving the Rubin CPX program and developing specialized inference products. The strategy could preserve CUDA and NVLink demand, but it may require higher supply commitments and investment while potentially reducing margins. NVIDIA Moves Deeper Into Broadcom Territory
• Negative Sentiment: The Anthropic-Lambda arrangement has been labeled a potentially “circular” financing structure because NVIDIA backs Lambda and reportedly holds the lease on the planned data-center site. Investors are questioning whether such transactions inflate apparent demand and increase regulatory or antitrust risk. Nvidia’s Latest ‘Circular’ Deal Might Be Its Most Confusing Yet
• Negative Sentiment: A global bond selloff has pushed long-term Treasury yields higher, raising the cost of capital and pressuring high-growth technology valuations. Semiconductor stocks broadly weakened as investors reassessed expensive AI shares, with NVIDIA also facing historically soft September seasonality and concern that margins may compress as it pays more to secure constrained memory and networking components. Semiconductor Stocks Slide as Global Bond Selloff Lifts Yields

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on NVDA shares. Weiss Ratings restated a “buy (b)” rating on shares of NVIDIA in a research report on Wednesday, July 8th. Wall Street Zen raised shares of NVIDIA from a “buy” rating to a “strong-buy” rating in a research note on Saturday. Mizuho set a $315.00 price target on shares of NVIDIA and gave the stock an “outperform” rating in a report on Thursday, August 27th. Tigress Financial restated a “strong-buy” rating and set a $425.00 price objective (up from $360.00) on shares of NVIDIA in a research report on Wednesday, May 27th. Finally, Rothschild & Co Redburn lifted their target price on shares of NVIDIA from $300.00 to $325.00 in a research report on Thursday, August 27th. Two research analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $324.23.

NVIDIA Price Performance

The company has a 50-day moving average of $208.33 and a 200 day moving average of $201.08. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The stock has a market capitalization of $5.24 trillion, a PE ratio of 27.49, a PEG ratio of 1.71 and a beta of 2.23.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The company had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. During the same quarter last year, the firm posted $1.05 EPS. The firm’s revenue for the quarter was up 105.9% on a year-over-year basis. Sell-side analysts predict that NVIDIA Corporation will post 9.1 EPS for the current year.

NVIDIA Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be given a dividend of $0.25 per share. The ex-dividend date is Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA’s payout ratio is presently 12.64%.

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

Insider Activity

In other NVIDIA news, Director Stephen C. Neal sold 15,500 shares of the firm’s stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total value of $3,343,815.00. Following the transaction, the director directly owned 116,135 shares of the company’s stock, valued at $25,053,803.55. This trade represents a 11.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Mark A. Stevens sold 885,000 shares of the company’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the sale, the director owned 5,207,271 shares of the company’s stock, valued at $1,094,412,146.07. This trade represents a 14.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 1,400,500 shares of company stock valued at $299,259,265. 3.94% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On NVIDIA

A number of institutional investors have recently added to or reduced their stakes in NVDA. Lifetime Wealth Management P.C. acquired a new position in NVIDIA in the 4th quarter valued at about $26,000. Longview Financial Advisors Inc. purchased a new stake in shares of NVIDIA during the 1st quarter valued at approximately $27,000. Montgomery Financial Services LLC purchased a new stake in shares of NVIDIA during the 2nd quarter valued at approximately $28,000. Longfellow Investment Management Co. LLC lifted its holdings in NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after acquiring an additional 67 shares during the last quarter. Finally, Langley Wealth Management LLC purchased a new position in NVIDIA in the second quarter worth approximately $34,000. Hedge funds and other institutional investors own 65.27% of the company’s stock.

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.