- Nvidia is considered the greatest industry in the GPU sector.
- The company is yet to reveal their third quarter financials.
- NVDA stock was trading at the market price of $166.66.
Berkshire’s Move Affected Nvidia
Nvidia (NASDAQ: NVDA) has remained a pioneer in accelerated computing globally since 1993. Recently, NVDA stock has experienced a push, increasing the price by 2.28% in the last 24 hours. The event was somehow connected to Warren Buffet owned Berkshire Hathaway’s Taiwan Semiconductor Manufacturing Company (NYSE: TSM) share acquisition.
According to the reports, Berkshire Hathaway has bought 60 Million TSM shares worth $4 Billion. Taiwan Semiconductor is considered among the most notable semiconductor manufacturers. They are utilized to make GPUs, RAM and ROM modules, ASICs and more. This clarifies the uptrending NVDA stock price.
The company is about to release their third quarter earnings and analysts have estimated $5.7 Billion revenue in Q3 2022. Second quarter revenue lived exactly up to the mark and generated $6.7 Billion. Profit margin dropped by almost 10% from 19.52% ($1.62 Billion) in Q1 2022 to 9.79% ($656 Million) Q2 2022. Company’s estimated earnings per share are expected to rise to 0.71.
NVDA Stock Price Action
The company started off 2022 with a positive $300 mark. It slid down to around $208 by January 2022’s end. It maintained a support zone around $206 and bounced a couple of times Between and February to reach $289 by the end of March 2022. NVDA stock price received a harsh blow from the crackdown of various authorities on crypto mining operations, sending the stock value dwindling down to $157.8 in May 2022.
NVDA stock has maintained $195 resistance and $139 support levels between June and August 2022. A major breakout came during September 2022, where the price remained out of the box before entering the zone again during November 2022. Now that the world’s greatest organization has purchased TSM stocks, it has significantly affected the associated company stocks, including Nvidia.
Furthermore, Nvidia announced that they will allow their Omniverse, a platform to develop metaverse objects, scientific computing customers to connect with legacy simulation. It will enable the users to link scientific computing visualization software. The initiative will align with their Earth-2 climate research program.
Company’s Earth-2 is developing climate models due to the increasing global climate, to predict the future using complex but accurate calculations. It may help meteorological organizations to take optimal measures regarding extreme weather. They are basically building Earth’s digital twin using the most powerful supercomputer in the world.
The company may grow significantly alongside the semiconductor industry as demand for ASICs, GPUs and more will rise in future. Currently, Taiwan Semiconductors holds 54% market share in the sector and Warren Buffet’s move has raised buying interest organizations using semiconductors in their products.
Source: https://www.thecoinrepublic.com/2022/11/16/whats-going-on-with-nvda-stock-price/