Company Of The Day: Nvidia
What?
Nvidia (NASDAQ:NVDA) has decided to end its planned Arm acquisition at a board meeting held on Monday, per a report in the Financial Times. Softbank, Arm’s current owner, is expected to receive a $1.25 billion breakup fee.
Why?
- What’s Next For Nvidia Stock After Blowout Q2
- Nvidia Dominates AI Silicon, But That Doesn’t Justify A $1 Trillion Valuation
- The AI Race Is Gathering Steam. What Will It Mean For Nvidia’s Earnings?
- Despite Generative AI Tailwinds, We Think Nvidia Stock Is Overvalued
- Digital Infrastructure Stocks Benefit From Growing Interest In Generative AI
- Company Of The Day: Nvidia
The acquisition faced backlash from regulators with the U.S. Federal Trade Commission suing to stop the transaction back in December. The deal also faced resistance in China, the UK, and Europe.
So What?
Nvidia stock didn’t react negatively to the news, remaining roughly flat in after-hours trading on Monday, as the markets had likely assigned a low probability that the deal would materialize.
See Our Complete Analysis For Nvidia
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
| Returns | Feb 2022 MTD [1] |
2022 YTD [1] |
2017-22 Total [2] |
| NVDA Return | 1% | -16% | 827% |
| S&P 500 Return | -1% | -6% | 100% |
| Trefis MS Portfolio Return | 0% | -10% | 255% |
[1] Month-to-date and year-to-date as of 2/8/2022
[2] Cumulative total returns since the end of 2016