NVIDIA Corporation (NASDAQ:NVDA) has been at the forefront of graphics processing units (GPU) manufacturing for quite some time, and at this point, it is the market leader. The stock has performed impressively in recent times and has hit its 52-week high as well. Considering the current state of the market, many might believe that it could be time to perhaps take the profits and exit positions.
However, if investors are inclined to do so, it is necessary for them to take a closer look at two important factors that could help in pushing the Nvidia stock further. Here is a closer look.
One of the more important triggers for further upside in the Nvidia stock could be the approval for the crucial Mellanox acquisition. The $6.9 billion acquisition had been stuck with the anti-trust authorities in China, but on April 16, the approval finally came through. In addition to that, it is necessary to note that Mellanox itself had made a crucial acquisition in the form of network intelligence and security company Titan IC. They will now pass on to Nvidia as well. This acquisition is expected to boost Nvidia’s presence in the Supercomputing Design space.
On the other hand, the company has also managed to handle the coronavirus crisis with some degree of effectiveness. The company announced that although the company will lose out on revenues to the tune of $100 million, it is going to grow its business further this year. Nvidia stated in a letter to its employees that gaming is actually going to replace many other forms of entertainment, and in addition to that, there is a move into digital from physical. So, it seems that the company might actually manage to expand its business further in the years to come, and that could also be a major boost to its stock at a time when many other companies are struggling.