After announcing the stock split, Nvidia (NASDAQ:NVDA) is working towards the proposed acquisition of the UK Based Arm. The deal is just on more reason to love NVDA stock.
The $40 billion transaction has attracted a lot of scrutiny from chip companies and regulators across the world.
Once this deal closes, Nvidia will enjoy a competitive advantage in the industry. It also will become a major player as a provider for the chip industry and will rule the world of AI.
The stock split had nothing to do with the fundamentals of the company but the stock is up 12% over the past month, a whopping 47% over the last six months, and close to 100% over the past year. I am bullish on NVDA stock and had recommended a buy when the company announced a stock split.
If you had purchased the stock based on my recommendation at $700, 0n June 9, you would be sitting on gains today. The stock is changing hands today at around $860. There is no stopping the momentum of NVDA stock.
It is hitting new highs every week and the sooner you buy in, the better your chances at making money. With that in mind, let’s dig deeper into my investment case for NVDA stock.
Red Hot NVDA Stock
The pandemic has not been kind to many tech companies but Nvidia is not one of them. It is enjoying red hot business with data centers, gaming, cryptocurrency mining and AI that drive the revenue growth.
Keep in mind that the industry was fighting a chip shortage and this has had an impact on every company but the revenue numbers of Nvidia show that it can sustain the growth in any business condition.
You name it and Nvidia has it. Right from the date centers to the gaming industry, electric vehicles, and cryptocurrencies, the company has products and services that will thrive in the future. These sectors are only expanding with time and your investment will grow along with them.
The company recently launched Cambridge-1, the most powerful supercomputer in the U.K. This technological marvel will allow healthcare experts and scientists to use AI and accelerate the digital biology revolution. It is a $100 million investment by Nvidia.
The market for AI is massive and Nvidia remains at the forefront of the technology. It is constantly working on building powerful productions around AI and it could drive massive sales for over the next five years.
I am not the only one bullish on NVDA stock. KeyBanc analyst John Vinh has an Overweight rating with a price target of $950. The analyst believes that the gaming demand will remain robust and will drive sales.
Further, Rick Schafer, an Oppenheimer analyst has a price target of $925 with an Outperform rating. Truist analyst William Stein has raised the price target of NVDA stock to $910 and has a buy rating.
The analyst believes that the data center will generate high revenue as the demand checks are tracking higher and the market will continue to grow.
The Bottom Line on NVDA
Whether you buy NVDA stock now or wait for the dip, the stock is only going higher. There is no doubting the fundamentals of the company and it is only going to grow its market share over the years. Once the ARM deal is settled, there is no looking back.
Nvidia is making its presence felt across several industries and the demand for its chips is only increasing each quarter.
The company will soon announce Q2 results and it could push the stock higher. Now is the right time to add the tech giant to your portfolio.
The company announces Q2 results in mid-August. This will give a perspective about the remaining two quarters.
Buy NVDA stock and hold for the long term.
On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
