Yesterday, Nvidia Corporation (NVDA) started trading on a four-for-one split-adjusted basis, announced in May 2021. The Board approved the stock split to make the shares more accessible to investors and employees. Shares closed down 1% at $186.12 on July 20.
Nvidia designs and manufactures GPUs, chipsets, and related multimedia software. The company has reshaped many industries, including transportation, healthcare, and manufacturing, with its accelerated computing and AI technology. Shares have gained nearly 79% over the past year. (See Nvidia stock charts on TipRanks)
The global chip shortage and related supply constraints have led to huge pent-up demand, and NVDA has cautioned about a difficult second half of the year.
Nvidia’s processors are used for both gaming and cryptocurrency mining. To avoid the hoarding of its processors for mining and the resultant shortage of gaming supplies, Nvidia reduced the mining efficiency of its new RTX gaming GPUs and launched a dedicated GPU for professional miners called CMP (cryptocurrency mining processor).
Furthermore, Nvidia is yet to complete the acquisition of Arm Holdings for $40 billion, announced in September 2020. The company has drawn a lot of criticism related to the buyout due to ongoing antitrust probes and opposition from rivals which is stalling the process.
Nvidia is scheduled to report its second-quarter earnings on August 18.
Overall, the stock commands a Strong Buy consensus rating based on 26 Buys and 1 Hold. The average Nvidia price target of $198.12 (split-adjusted) implies 6.5% upside potential to current levels.
Also, TipRanks data shows that financial blogger opinions are 92% Bullish on NVDA, compared to a sector average of 70%.
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