Sunday, July 3

Nvidia is green despite the negative effect of Arm Holdings

NVIDIA the best and worst of the innovative universe of the Nasdaq have returned to this week. A company that is experiencing the best of both worlds, in the worst of the pandemic and it seems that a kind of second life after the worst of Covid-19, with the Metaverse in perspective and the possibilities, both own and others that it presents.

For now, the shortage of semiconductors in the market continues to delight the company, with astronomical prices, which gamers and crypto miners are still willing to pay, with that ambivalence of its use for one or another modality. From all this it has benefited throughout this 2021, which was being very favorable for the value, as we say, in this new push, with the imposition of Nvidia purchases in the market.

But it seems that the so hackneyed already and problematic purchase of the British Arm Holding for 40,000 million dollars and the consequences in terms of security, it seems that almost, can definitely be the goodbye to the operation.

After the problems of British regulators, of community investigations, the latest is the lawsuit filed by the Federal Trade Commission of the United States, the FTC in its acronym in English. The idea is to block this merger between the two companies. What it alleges, incompatibilities with US regulations governing free competition.

The FTC considers that the purchase of Arm by envy constitutes what he calls a critical element that encourages competition between Nvidia and its rivals. And it also seems that things are going for a long time, because the administrative procedure of the lawsuit will begin on August 9. And although the semiconductor company takes away the iron from investors, and analysts, as we will see now, they do not see it that way.

In its stock chart we see how Nvidia has moved once the news broke, but the truth is that little by little the fear of omicron on the part of investors is dissipating and the great beneficiaries turn out to be technological stocks, Nvidia included, and all despite yesterday’s cuts.

Thus, the value gains 1.30% in the last five trading sessions and it advanced 8.10% in the last month. Earnings in three months reach 42.5% for Nividia. Already in the year the advances in its price reached 144% and since last December, the gains exceed 146.3%.

Nvidia annual stock price

From Wedbush he considers that the entry into play of the FTC in the Arm case almost definitively moves away the purchase, while since Citigroup believes that right now there is only a 5% chance the acquisition is complete.

Despite this, since Citigroup and thinking already in 2022 considers that Nvidia is its third preferred semiconductor company for the next fiscal year behind Applied Materials and Lam Research, but ahead of Marvell Technology. They give you a price target of $ 350 and he considers himself the big winner as far as the metaverse is concerned.

According to Tipranks of the 26 analysts who follow the value 24 choose to buy shares of Nvidia in the market and two for keeping them in the portfolio. As for the target price of the security, it reaches an average of 360 dollars, with potential slightly higher than 11%.

Nvidia value recommendations

As perfection comes to Nvidia hand in hand with its enviable technical appearance. According to the premium indicators of Investment Strategies, the semiconductor company scores nothing less than the best mark in the market: 10 points out of 10 possible for market value.

With an upward trend in its two aspects, in the medium and also in the long term, total moment, both slow and fast positive, the business volume is increasing in the medium and long term, while the volatility of the value, in its two aspects, its range of amplitude, in the medium and long term, is decreasing.

If you want to know the most bullish values ​​of the stock market, depend free on Investment Strategies.

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