Should you invest in Nvidia ahead of the $40 billion ARM acquisition?
- Nvidia shares popped more than 5% on Monday after receiving more backing from rivals to buy ARM.
- Three major chipmakers are now backing NVDA’s $40 billion acquisition of ARM from SoftBank.
- Nvidia stock is also benefitting from optimism directed towards its investments in AI.
Nvidia Corp’s (NASDAQ:NVDA) acquisition of ARM from SoftBank Group Corp (TYO:9984) has received backing from fellow chipmakers Broadcom Inc. (NASDAQ:AVGO), Marvell Technology Inc. (NASDAQ:MRVL), and MediaTek Inc. (TPE:2454). Several chipmakers continue to oppose the deal.
Why Nvidia is a compelling buy
Nvidia’s investment in AI gaming architecture is one of the most exciting developments in the gaming industry. When integrated into the company’s GPUs, it will accelerate game processing speeds, leading to massive industry adoption.
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Nvidia’s long-term future looks exciting, and now could be the perfect time to buy the stock. ARM’s acquisition will help augment its business.
Technical overview: bull-run looks solid
NVDA stock hit overbought conditions last week. It looks sure to extend current gains following Monday’s reports. Investors can target profits at approximately $849.34 and $894.86. The key support levels are $755.30 and $709.81.
Bottom line: NVDA is still an attractive buy
Although Nvidia shares have rallied to new historical highs, the company’s future looks exciting. It is not too late to buy NVDA stock.
Where to buy right now
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