The ARM deal will come under the scrutiny of the regulatory authorities in the European Union in September, and NVDA has indicated earlier at its recent Q2 earnings call that 'we are working through the regulatory process' for the ARM transaction.Īnother key news event which happened in the last month is that market research firm Allied Market Research published a new report forecasting that the cryptocurrency market (on a worldwide basis) will grow from $1.49 billion (as of 2020) to $4.94 billion in the next decade. Apart from better-than-expected Q2 FY 2022 financial results that were reported earlier in the month (which I will discuss in the next section), Nvidia Corporation also benefited from positive news flow which boosted its stock price.Ī piece of important news is that Nvidia continues to move forward with the company's proposed acquisition of ARM. In the past month, NVDA's share price has gone up by 15% from $197.50 as of Augto $226.88 as of Augsince I published my prior article. Taking into account both the short-term risks and long-term growth drivers for the stock, I continue to assign a Neutral rating to Nvidia.

However, I think that a potential valuation de-rating for Nvidia in the near term could be in the cards, if the ARM acquisition does not go through and cryptocurrency mining demand wanes. Nvidia's good stock performance in the past month following my earlier article is likely driven by above-expectations quarterly earnings, continued progress in relation to its planned acquisition of ARM ( ARMHF), and the positive long-term outlook for the cryptocurrency mining market. This current article offers my updated view of Nvidia following its Q2 FY 2022 earnings. I previously wrote about NVDA in an article published on Augprior to the company's Q2 FY 2022 (YE January 31) financial results released in mid-August. I continue to rate NVIDIA Corporation's ( NASDAQ: NVDA) shares as Neutral or Hold.

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