One cannot exaggerate the dominance of Nvidia (NASDAQ:NVDA) in the gaming industry. Known for cutting edge graphics processing units, the company holds a large market share and is the processor of choice for most gamers. Nvidia has set the gold standard when it comes to gaming. After the recent stock split, NVDA stock has shown volatility and dipped recently.
It closed the first week of August $203.66 and has the potential to hit new highs.
I have long been bullish on NVDA stock and strongly believe that it has everything it needs to soar. Every pullback in the stock is an opportunity to buy and then hold for the decade.
Let’s dig deeper into what I see as the one positive — and one negative move — that will help the stock move higher.
First Steps in Big AI Play
The tech maker recently announced the availability of NVIDIA Base Command Platform in North America. It is an AI development hub that will provide enterprises with instant access to computing infrastructure, irrespective of where the data is placed. The Base Command Platform is available for rent in monthly increments to those organizations who want to advance their AI capabilities. This is the first NVIDIA-powered hybrid cloud that is offered through the NVIDIA LaunchPad partner program.
Through this, the company is taking a step ahead with AI and has the potential to attract large-scale and multi-team enterprises. It will allow the workflow to quickly move the AI projects from a prototype to production.
An early access customer of the platform is Adobe. Monthly subscription pricing to the platform starts at $90,000 for a minimum three-month period. This is a strong move toward AI in the industry will help establish Nvidia as a key player in the coming months.
Doubts About ARM Acquisition
The ARM acquisition by Nvidia has garnered a lot of news lately. While the company was awaiting approval from the U.K. authorities, it has come to light that the U.K. might block the deal for security reasons, as reported by Bloomberg.
Nvidia stated that it is working to resolve the issues. The U.K.’s Competition and Markets Authority has already sent the phase 1 investigation report to the U.K. Government and the bureaucrats are now likely to conduct a deeper review of the merger.
Further, the acquisition is also being delayed by antitrust regulators in China. The review process could take more than six months because of the size of the purchase. The reason behind the delay is not known.
Whether the ARM acquisition is delayed or remains cancelled, it will not have an impact on Nvidia’s fundamentals. This is a successful business on its own. Deal or no deal, NVDA stock will continue to grow.
Wall Street Loves NVDA Stock
I am not the only one bullish on NVDA stock. Wall Street loves the name, too. Rosenblatt analyst Hans Mosesmann has a buy rating on the stock with a price target of $250. William Stein from Truist Securities has the same rating but with a lower target of $229. Others, from Jim Kelleher at Argus to Atif Malik at Citi analyst see things the same.
There are many growth catalysts that will take the shares higher but the success in gaming and AI should be reason enough to invest in NVDA stock. Given the strong growth prospects and a growing position in the market, Nvidia has potential for a lot more to come.
All in all, Nvidia is everything a successful tech company looks like. This dip is a great opportunity to invest in NVDA stock. The stock could be your best bet of the decade.
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.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.
