Nvidia's Acquisition Saga May Finally Come to an End: What to Expect from NVDA Stock Tomorrow

In a surprise move, Nvidia's (NVDA) 14-month acquisition saga may finally be coming to an end. The company has been embroiled in a high-stakes battle with the Federal Trade Commission (FTC), which sued NVIDIA to block its merger with Arm on December 2. Despite this, NVDA stock barely budged in the premarket, indicating that investors are already pricing in the outcome of the deal.

As the dust settles, focus will shift to Nvidia's data center revenue, which has been a bright spot for the company. The increasing demand for remote computing power during the pandemic has driven up demand for Nvidia's chips used by data centers. This trend is expected to continue as more businesses shift their operations online and the metaverse, a virtual world built on technologies like VR and augmented reality (AR), gains traction.

Nvidia has traditionally specialized in making chips for the gaming and graphics industry, being a pioneer in the development of graphics processing units (GPUs). However, it turns out that the robust computational capabilities employed by GPUs to power video games and graphics software are also well-suited for technologies like AI and machine-learning. This versatility is likely to create additional sources of demand for Nvidia's data center chips.

As investors look ahead to tomorrow, they will be keeping a close eye on Nvidia's data center revenue, which has been a key driver of the company's growth in recent years. The robust demand for remote computing power and the increasing importance of technologies like AI and machine-learning are likely to continue driving up demand for Nvidia's chips.

In conclusion, while NVDA stock may not be expected to surge tomorrow following the resolution of the acquisition saga, investors will still be keeping a close eye on the company's data center revenue. As the metaverse continues to gain traction, it is likely that Nvidia's data center chips will remain in high demand, driving up revenue and profitability for the company.

Nvda stock forecast tomorrow