NVIDIA (NASDAQ:NVDA) Trading Down 3.6% – Here’s Why

Posted by Brian Himes on Jun 5th, 2026

Shares of NVIDIA Corporation (NASDAQ:NVDA – Get Free Report) were down 3.6% on Wednesday . The stock traded as low as $214.51 and last traded at $214.75. Approximately 154,614,258 shares changed hands during mid-day trading, a decline of 10% from the average daily volume of 172,189,063 shares. The stock had previously closed at $222.82.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

Positive Sentiment: China Renaissance initiated coverage on NVIDIA with a buy rating and a $319 price target, signaling confidence in additional upside from current levels. China Renaissance coverage on NVIDIA
Positive Sentiment: Multiple reports say analysts remain bullish on NVIDIA’s AI leadership, citing Blackwell demand, CUDA’s competitive moat, and continued strength in AI inference and infrastructure spending. Analyst Picks NVIDIA Over Every Other AI Chip Stock Right Now
Positive Sentiment: Taiwan Semiconductor reportedly signed a major AI deal with NVIDIA, reinforcing the company’s ecosystem expansion and long-term AI demand narrative. Taiwan Semiconductor Manufacturing Signs Major AI Deal With Nvidia
Positive Sentiment: NVIDIA’s CEO said robotics could be the next major growth area in South Korea, suggesting the company is broadening beyond data centers into new AI end markets. Nvidia CEO sees robotics as next major sector in South Korea
Neutral Sentiment: Coverage around NVIDIA’s new RTX Spark PC chip and broader consumer-PC push adds another growth angle, but investors appear to be weighing that opportunity against the stock’s already elevated valuation. Nvidia’s PC Chip Reveal Obscures a Bigger Catalyst for the Stock
Negative Sentiment: Senator Elizabeth Warren invited Jensen Huang to testify about China AI chip sales, keeping export controls and China revenue risk in focus. Warren invites Nvidia CEO Jensen Huang to Senate hearing on China AI chip sales
Negative Sentiment: Director Mark Stevens’ sale of 500,000 shares may add near-term pressure on sentiment, even though it doesn’t change NVIDIA’s underlying fundamentals. Mark Stevens sells 500,000 shares of NVIDIA

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on NVDA. Weiss Ratings reiterated a “buy (b)” rating on shares of NVIDIA in a report on Friday, April 10th. Truist Financial raised their price objective on shares of NVIDIA from $287.00 to $307.00 and gave the stock a “buy” rating in a research report on Thursday, May 21st. Melius Research set a $400.00 price objective on shares of NVIDIA in a research note on Thursday, May 21st. Wedbush boosted their target price on shares of NVIDIA from $300.00 to $330.00 and gave the company an “outperform” rating in a research report on Thursday, May 21st. Finally, Craig Hallum increased their target price on shares of NVIDIA from $245.00 to $275.00 and gave the stock a “buy” rating in a research note on Thursday, May 21st. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus target price of $305.67.

Get Our Latest Stock Analysis on NVDA

NVIDIA Price Performance

The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The business’s fifty day moving average price is $202.84 and its 200-day moving average price is $190.45. The stock has a market capitalization of $5.17 trillion, a price-to-earnings ratio of 32.64, a PEG ratio of 0.52 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, topping analysts’ consensus estimates of $1.76 by $0.11. The company had revenue of $81.62 billion for the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm’s revenue was up 85.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.81 EPS. On average, research analysts forecast that NVIDIA Corporation will post 8.04 EPS for the current year.

NVIDIA Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Thursday, June 4th will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 0.5%. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. The ex-dividend date is Thursday, June 4th. NVIDIA’s dividend payout ratio is currently 15.31%.

NVIDIA announced that its board has initiated a stock buyback program on Wednesday, May 20th that permits the company to repurchase $80.00 billion in shares. This repurchase authorization permits the computer hardware maker to buy up to 1.5% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity at NVIDIA

In related news, EVP Ajay K. Puri sold 300,000 shares of the business’s stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $182.25, for a total transaction of $54,675,000.00. Following the transaction, the executive vice president directly owned 3,018,547 shares in the company, valued at approximately $550,130,190.75. The trade was a 9.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Aarti S. Shah sold 19,000 shares of the company’s stock in a transaction dated Thursday, March 19th. The stock was sold at an average price of $176.71, for a total transaction of $3,357,490.00. Following the completion of the sale, the director directly owned 36,007 shares of the company’s stock, valued at $6,362,796.97. The trade was a 34.54% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,906,961 shares of company stock valued at $384,041,268 over the last three months. Insiders own 3.94% of the company’s stock.

Institutional Trading of NVIDIA

Hedge funds have recently bought and sold shares of the business. State Street Corp boosted its stake in NVIDIA by 1.2% in the fourth quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker’s stock valued at $184,911,111,000 after acquiring an additional 11,451,386 shares during the last quarter. Geode Capital Management LLC increased its stake in shares of NVIDIA by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker’s stock worth $109,446,217,000 after purchasing an additional 3,383,441 shares during the last quarter. Norges Bank bought a new stake in shares of NVIDIA in the 4th quarter worth approximately $62,244,133,000. Bank of America Corp DE lifted its stake in NVIDIA by 2.1% in the first quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker’s stock valued at $33,345,453,000 after purchasing an additional 4,019,505 shares during the last quarter. Finally, Legal & General Group Plc lifted its stake in NVIDIA by 1.5% in the third quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker’s stock valued at $33,808,862,000 after purchasing an additional 2,609,560 shares during the last quarter. 65.27% of the stock is currently owned by institutional investors.

NVIDIA Company Profile

(Get Free Report)

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.