NVIDIA Corporation (NASDAQ:NVDA – Get Free Report)’s stock price dropped 3.2% on Wednesday. The company traded as low as $219.64 and last traded at $221.30. Approximately 116,506,697 shares traded hands during trading, a decline of 23% from the average session volume of 151,600,344 shares. The stock had previously closed at $228.52.
Key NVIDIA News
Here are the key news stories impacting NVIDIA this week:
- Positive Sentiment: NVIDIA launched RTX Spark laptops with ASUS, Dell, HP, Lenovo, Microsoft and MSI. The systems combine Blackwell graphics, CUDA and up to 1 petaflop of AI performance, expanding NVIDIA’s addressable market beyond data centers into premium PCs, gaming and local AI. NVIDIA RTX Spark laptops article
- Positive Sentiment: Demand indicators remain favorable: Taiwan is planning major Texas industrial parks to support NVIDIA’s supply chain, while Volvo expanded its partnership with NVIDIA for automated-driving systems. These developments reinforce the company’s position in AI infrastructure and automotive computing. Volvo expands NVIDIA partnership
- Neutral Sentiment: NVIDIA CEO Jensen Huang announced investments in five U.K. startups and continued emphasizing AI safety. The moves may strengthen NVIDIA’s ecosystem and public standing, but they are unlikely to materially change near-term earnings. Jensen Huang London article
- Negative Sentiment: Higher Treasury yields and renewed inflation concerns are pressuring high-growth technology stocks. Investors are increasingly questioning whether customers and specialized cloud providers can finance the enormous capital spending required for AI data centers and generate adequate returns. Rising Treasury yields article
- Negative Sentiment: Microsoft’s next-generation Maia chips highlight a longer-term competitive risk: major NVIDIA customers are developing custom accelerators that could reduce reliance on NVIDIA GPUs. Microsoft Maia chips article
- Negative Sentiment: CoreWeave’s sharply higher borrowing costs have raised concerns about the financial health of “neocloud” customers and the sustainability of GPU infrastructure spending. NVIDIA’s equity stake in CoreWeave adds an indirect exposure to that financing risk. CoreWeave financing concerns article
- Negative Sentiment: Recent disclosures show substantial NVIDIA insider selling with no reported open-market purchases, a potential sentiment headwind despite continued institutional buying and strong prior-quarter revenue growth. NVIDIA disclosures article
Analyst Upgrades and Downgrades
A number of analysts recently commented on NVDA shares. Wells Fargo & Company set a $210.00 price target on shares of NVIDIA in a research note on Friday, October 2nd. Royal Bank Of Canada boosted their target price on shares of NVIDIA from $300.00 to $330.00 and gave the company an “outperform” rating in a report on Thursday, August 27th. Weiss Ratings restated a “buy (b)” rating on shares of NVIDIA in a research report on Friday, October 2nd. BNP Paribas Exane reaffirmed an “outperform” rating and issued a $345.00 price target on shares of NVIDIA in a report on Monday, October 5th. Finally, BMO Capital Markets set a $340.00 price target on NVIDIA and gave the stock an “outperform” rating in a report on Thursday, August 20th. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Buy” and an average target price of $321.89.
Get Our Latest Stock Report on NVDA
NVIDIA Trading Down 0.6%
The stock has a market cap of $5.20 trillion, a P/E ratio of 27.30, a PEG ratio of 1.71 and a beta of 2.22. The firm’s fifty day moving average price is $223.40 and its two-hundred day moving average price is $211.08. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85.
NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating the consensus estimate 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 during the quarter, compared to analyst estimates of $92.27 billion. During the same quarter last year, the company earned $1.05 earnings per share. The firm’s quarterly revenue was up 105.9% on a year-over-year basis. As a group, equities research analysts forecast that NVIDIA Corporation will post 9.25 EPS for the current year.
NVIDIA Announces Dividend
The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date was Thursday, September 10th. NVIDIA’s dividend payout ratio (DPR) is 12.64%.
NVIDIA declared that its Board of Directors has approved a stock buyback program on Monday, September 28th that allows the company to repurchase $150.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Share buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.
Insider Transactions at NVIDIA
In related news, Director Mark Stevens sold 622,239 shares of the company’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total value of $144,122,997.18. Following the transaction, the director directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Colette Kress sold 34,918 shares of the firm’s stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the completion of the sale, the chief financial officer directly owned 765,103 shares in the company, valued at $167,595,812.15. This represents a 4.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 1,766,118 shares of company stock valued at $399,450,353. 3.94% of the stock is owned by corporate insiders.
Institutional Investors Weigh In On NVIDIA
A number of large investors have recently added to or reduced their stakes in NVDA. Boyd Wealth Management LLC boosted its stake in NVIDIA by 273.4% during the second quarter. Boyd Wealth Management LLC now owns 9,145 shares of the computer hardware maker’s stock worth $1,830,000 after acquiring an additional 6,696 shares in the last quarter. Ally Financial Inc. grew its holdings in NVIDIA by 10.3% in the second quarter. Ally Financial Inc. now owns 172,000 shares of the computer hardware maker’s stock worth $34,415,000 after purchasing an additional 16,000 shares during the period. Altshuler Shaham Ltd increased its stake in shares of NVIDIA by 6,451.9% during the first quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker’s stock valued at $111,134,000 after purchasing an additional 627,510 shares in the last quarter. Storen Legacy Partners LLC bought a new position in shares of NVIDIA during the fourth quarter valued at approximately $1,350,000. Finally, Baker Tilly Wealth Management LLC increased its stake in shares of NVIDIA by 7.4% during the second quarter. Baker Tilly Wealth Management LLC now owns 71,898 shares of the computer hardware maker’s stock valued at $14,386,000 after purchasing an additional 4,958 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.
About NVIDIA
NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.
The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.
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