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Tag: Nvidia Stock

  • NVIDIA Corp. (NVDA) Stock Plummets Following Implementation of Stock Split

    NVIDIA Corp. (NVDA) Stock Plummets Following Implementation of Stock Split

    NVIDIA Corp. (NVDA) stock prices were up 3.41% as of the market close on July 19th, 2021, bringing the price per share up to USD$751.19 at the end of the trading day. Subsequent premarket fluctuations have seen the stock plummet by 74.79%, bringing it down to USD$189.40.

    NVDA Stock Split

    The company’s stock has been climbing steadily and substantially for quite some time now, coming in at more than USD$800 per share as of the end of June 2021. May 2021 saw NVDA announce a stock split that would see each share of common stock being divided into 4 whole shares of common stock. As of the market opening on July 20th, 2021, NVDA shares will trade on a split-adjusted basis. Accordingly, the price of each share will be reduced drastically, which is to be expected given the influx of a number of shares outstanding.

    Effect of Stock Split

    While stock splits obviously affect the price of each share, they do not have a tangible effect on the actual value of the company or the value of its shares. With changes being limited to the number of shares and according to the price of each, fundamentals remain unchanged, as does the long-term outlook of the company. Following the four to one stock split, shareholders of record will find themselves to own four times as many shares as before the split, with the actual value of their investment staying the same.

    Healthy Financials

    The company’s revenue report for the first quarter of 2021 reported USD$5.66 billion, a massive 84% year-over-year increase from the numbers reported in the prior-year quarter. This was largely motivated by a doubling of the company’s gaming revenue, which was up to USD$2.76 billion, as well as a 79% year-over-year improvement in data center revenue.  Earnings per share were also up, by 106% over the course of the year to hit USD$3.66.

    Investor Accessibility

    The resulting reduction in price per share following a stock split has the potential to positively impact longer-term gains because of the increased accessibility. This effect, however, is mitigated partially by the introduction of partial shares, which allow investors to buy fractions of shares. This offers investors the accessibility that is not time-bound as opposed to investors having to wait and time their investments around the implementation of stock splits.

    Future Outlook for NVDA

    Armed with its sustained trajectory of success over the past few quarters, NVDA is poised to capitalize on its momentum as it allocates resources to maintain its steam. Investors are hopeful that management will be able to turn the stock split around to usher in additional growth from the added exposure and accessibility.

  • The Three Top Semiconductor Stocks to Buy Now

    The Three Top Semiconductor Stocks to Buy Now

    The semiconductor stocks are on bullish radar this year following 5G and other infrastructure investments.

    The semiconductor stocks were expected to have a poor year amid the trade war with China and the global pandemic. However, the companies from the semiconductor segment kept on performing with notable growth.

    The new technologies are accelerating more than ever and 5G is one of the fastest-growing technology in the world. The bullish sentiment will continue to upsurge in 2021 following the advancement of 5G and other technological advancements such as the integration of cloud services.

    Moreover, the rising trend of online gaming and cloud computing is also rising quite rapidly. This has developed a path for the semiconductor and semiconductor equipment market. So, the semiconductor stocks are a healthy bet for the investment this year. Let’s have a look at the three top semiconductor stocks to buy now.

    Nvidia (NVDA)

    The semiconductor giant, Nvidia (NVDA) is cursing towards the buy point ahead of its fiscal fourth-quarter earnings report. Investor’s Business Daily reported that IBD MarketSmith charts show NVDA stock has formed a flat base with a buy point of 587.76, over the past 13 weeks.

    In the fiscal Q3 2020, the company reported data center sales of $1.9 billion, up by 162% year-over-year. The revenues skyrocketed 57% to$4.7 billion, with a gross margin of more than 63%. While the net profits were around $1.3 billion.

    The demand for chips and semiconductor products is high with people buying more laptops and gaming PCs during the pandemic. As we move forward, the production scale is going to increase—aiming for the high market demand. So, Nvidia (NVDA) is a potential option for investing in semiconductor stocks this year.

    Broadcom (AVGO)

    Broadcom (AVGO) is a global developer, designer, and supplier of analog semiconductor devices. The company reported 11.9% growth and 56.3% net income growth in Q4 results. The company has been on a roll and is continuing the strong growth from last year.

    The company reported $6.35 per share earnings, beating the expected earnings of $6.26. Broadcom is on a bullish radar and Zacks anticipate a +1.39% in the EPS for the recent quarter.

    While analyst Angelo Zino says that there will be an improvement in enterprise data center spending in the first half of the year. Adding on, he said that cloud spending should remain elevated for the time being.AVGO stock is rated as a buy with a price target of $510, by CFRA.

    Skyworks Solutions (SWKS)

    Skyworks Solutions (SWKS) is a diversified chipmaker, tightly tethered to Apple. The company generated around 56% of its revenue from Apple in fiscal 2020.

    Skyworks mostly expects its share gains from the 5G devices, which are coming in the market in large numbers now. Analyst Zino believes that the transition to 5G technology will be a tremendous bullish catalyst for the stock. Moreover, SWKS shares have a notable valuation, which is priced at only around 20 times forward earnings.

    While the company has zero debt and approximately $1 billion in cash. The company has long-term opportunities that would drive the stock’s price. So, SWKS is another big gun that is in the buy range at the moment.

  • Nvidia (NVDA) Could Continue Long-Term Rally

    Nvidia (NVDA) Could Continue Long-Term Rally

    The evolution of the share price of Nvidia (NVDA) has been one of the most remarkable in the last decade, going from $5.7 in 2009 to more than $500 in 2020, in a bull market of a magnitude that few stocks have been able to equal in that period.

    Nvidia is one of the Nasdaq’s largest stocks, trading on the Nasdaq100 and one of the 15 biggest companies on the capitalization index, ranked 10th at the time of this writing.

    Despite being a U.S. company, the Asian market depends on it, especially on the Chinese part of it because if we consider Taiwan as within the Sino-sphere, we see that it is half of the sales of the company. Nvidia is possibly not involved in a big trade war between China and the United States because of this.

    With more than 70 percent of the money in the hands of this form of shareholder, the company’s shareholding is highly institutional, with funds such as Vanguard or Fidelity leading the list. The company’s founder, the Taiwanese Hsun, has a full fortune with that stake. He still has an interest in the company, which is good news for him.

    The outcomes of Nvidia are completely fantastic, with impressive profit growth, and that more than explains why this stock is so attractive.

    What we will end up seeing in 2018 and 2019 was already expected by the stock market launch of 2015 and the true explosion of 2016 and 2017.

    As we see, the price of a share increases unabashedly often because it can actually “detect” that the future profit is going to be exceptional for many years. That was the case at Nvidia these years.

    Nvidia has many competitors in the world market and particularly in the Asian markets.

    In the United States, while it competes with names such as AMD, IBM or Intel, it is the most profitable company in this market.

    An all-out trade war between the United States and China will be one of the clouds that might present further potential problems for this company, causing the company to experience significant retaliation in the Chinese market (not so much in Taiwan, which is pro-USA).

    Currently Nvidia’s stock price is at $518 with yearly gain of 138%.

  • Nvidia (NASDAQ: NVDA) Stock Keep Rising Amid ARM Deal

    Nvidia (NASDAQ: NVDA) Stock Keep Rising Amid ARM Deal

    NVIDIA Corporation (NASDAQ: NVDA) has announced that it has decided to acquire Arm Ltd. from SoftBank Inc. for about $40 billion in stock and cash deal. This deal is considered to be the first-ever deal of this kind in the semi-conductor industry but Nvidia Inc has received a strong backlash from its rival. Nvidia deal with SoftBank would put Arm Ltd under the control of a US-based firm in the middle of a battle between the US and China.

    Arm Ltd. has a strong reach as a supplier of designs and intellectual property to most of the global semiconductor industry. It is considered to be the major supplier of its technology to companies such as Intel Corp, Samsung Electronics Co Ltd, and  Qualcomm Inc who increasingly compete with Nvidia. Nvidia Corporation is anticipated to close the deal in 18 months after receiving regulatory approval but there are speculations that the deal will be delayed.

    ARK Invest Analyst James Wang said that this deal required approval from four countries the UK, the US, China, and Japan so there are 50/50 chances that the deal will be delayed. The analyst said that this is a complicated deal and it is too early to say that this will be completed or not. Mark Lipacis maintained a Buy rating for Nivida as he raised the price target from $570 to $680.

    Geoff Blaber, vice president of research for the Americas with CCS Insights revealed that this deal will receive a lot of obstacles and will encounter huge criticism from the customers of Arm Ltd. Nvidia Chief Executive Jensen Huang and Arm Chief Executive Simon Segars made a very interesting point that because the company is based in the UK, it is free from US trade barriers and regulations. Nvidia will maintain the UK headquarter of Arm Ltd.

    Shares of Nvidia Corporation (NASDAQ: NVDA) soared 5.82% as it gained +28.31 during the trading session of Monday. NVDA share price went from a low point around $169.32 to briefly over $589.07 in the past 52 weeks, though shares have since pulled back to $514.89. Nvidia Corporation’s market cap has remained high, hitting $321.53 billion at the time of writing. Looking at its liquidity, it has a current ratio of 6.10.

    Nvidia said that the Arm will continue to work as a neutral supplier after the deal and it will not interfere in any Arm’s Licensing efforts. But the deal has garnered a huge criticism. One of the Chinese chip executives said that it is hard to give services in China if Arm had an American Parent company. South-Korean chip officials said that after this deal Arm could increase the licensing fees for the competitors.

    The combination of Nvidia and Arm Ltd will reshape the semiconductor industry in the coming years. After this deal, Nvidia will be able to gain the ability to own the whole chip stack, across mobile phones, computers, and cloud-computing data centers.