Nvidia's Stock Slips 3.32% Despite $42.46 Billion Trading Volume Ranking First in Market Activity

Nvidia's stock closed at a loss of 3.32% on August 29, 2025, with a trading volume of $42.46 billion, ranking first in market activity for the day. The decline followed a quarterly earnings report that, while exceeding overall revenue and profit forecasts, failed to accelerate growth expectations. Data center revenue slightly undershot projections, and the company's Q3 guidance aligned with but did not exceed consensus estimates. Investors appeared to capitalize on short-term gains amid signs of slowing momentum, particularly as inventory levels rose and revenue growth decelerated for the third consecutive quarter.

The stock faced additional pressure from broader market dynamics. A report highlighted that Alibaba has developed an advanced AI chip now in testing, reflecting a trend of Chinese firms seeking alternatives to U.S. semiconductor technology. This development could potentially reduce demand for Nvidia's products in the region. Meanwhile, weak guidance from a peer chipmaker further dampened sentiment across the sector. Despite these challenges, analysts noted that Nvidia's shares remain near a 52-week high, with a year-to-date gain of 25.7%.

Financial metrics underscored the mixed performance. Free cash flow for Q2 2026 fell slightly year-over-year to $13.45 billion, while capital expenditures nearly doubled compared to the prior year, squeezing cash flow margins. Non-GAAP gross margins declined to 72.4% from 75.0% in the same period of 2025. Analysts' price targets suggest a projected range of $202 to $217 per share over the next 12 months, reflecting cautious optimism about future valuation despite current valuation pressures.

Based on the trailing 12-month free cash flow yield of 2.0%, the estimated market value for Nvidia would reach $5,050 billion, implying a potential share price of $207. This aligns with average analyst targets and reflects a projected 14.9% increase from the current market capitalization of $4,394 billion.