NVIDIA's stock price fell by 1.6% and experts show the next developments.

NVIDIA's stock price fell by 1.6% to $137.09 in Thursday's trading. The trading volume on this day significantly undershot the average, suggesting a change in investor sentiment. On the other hand, Analysts' evaluations remain bullish, with multiple securities firms raising their target prices, highly valuing the company's growth potential. The latest quarterly earnings exceeded expectations with a 93.6% increase in revenue and profit margin, recording an annual revenue growth of 93.6%. Furthermore, a $5 billion stock repurchase plan and dividend distribution have been announced, drawing attention to shareholder returns.
Inside the company, while insider sales are seen, the increase in institutional investors' shareholding compensates for this. Against this backdrop, the future development of NVIDIA's stock is attracting attention among market participants.

NVIDIA's stock price fell by 1.6% on Thursday, but what is noteworthy is the significant decrease in trading volume. The trading volume on the same day decreased by 85% to 58,693,994 shares compared to the normal average of 385,713,875 shares. This low trading volume reflects market participants' cautious stance and may be influenced by the uncertain economic environment and heightened competition in the semiconductor industry. Also, the prominent selling pressure despite Analysts' bullish evaluations suggests investors' profit protection awareness.
On the other hand, a significant growth of 93.6% in revenue has been confirmed in the recent quarterly earnings. This gap highlights the disparity between short-term market sentiment and the company's long-term growth outlook. Particularly for a company like NVIDIA, where AI-related business expansion is considered a growth driver, future demand trends are believed to hold the key to stock price recovery.

NVIDIA announced a quarterly dividend payment scheduled for December 27, with a dividend yield of 0.03%. Furthermore, on August 28, a $5 billion stock buyback plan was approved. With this plan, it is possible to buy back 1.6% of outstanding shares from the market, indicating the company's belief that the stock is undervalued. These measures prioritize shareholder returns, emphasizing a stable capital allocation strategy.
However, the very low dividend yield has received cautious evaluation from some investors. The current dividend payout ratio of 1.57% can be seen as reflecting the company's prioritization of growth investments. In the market, while it is highly valued as a growth tech company, it also has aspects that are not suitable for investors seeking stable earnings. In this way, the company's shareholder return strategy is considered a balanced approach to maintaining investment in growth while enhancing shareholder value.

Within NVIDIA, significant stock sales by directors have been confirmed. For example, Mr. Tench Coxe sold 1 million shares in September, totaling approximately $0.1 billion191.27 million. In addition, Mr. John Dabiri also sold 716 shares in November, suggesting that these trends indicate insiders may be eager to secure profits. On the other hand, insiders still own 4.23% of the company's shares, maintaining a certain level of trust.
In contrast, the increase in the number of shares held by Institutions supports external trust. Specifically, Legal & General Group Plc increased its NVIDIA shares by 884% in the second quarter, with an estimated value of $263.2 billion, signifying strong expectations for NVIDIA's growth potential and market dominance. Such external capital inflows are believed to demonstrate strong expectations for NVIDIA's growth potential and market dominance. The current intersection of internal and external perspectives further enhances interest in the company's future prospects.