NVIDIA Stock Price and Forecast: NVDA targets break of $300 on covid concerns

• NVDA stock falls over 3.5% on Friday to $315.03.
• Nvidia still facing headwinds from regulators for Arms purchase.
• The semi-conductor company is one of 2021 best-performing stocks.

Nvidia (NVDA) lost ground on Friday as panic gripped global stock markets. A new strain of covid identified in South Africa caused concern as it appears at first glance to be more transmissible than the delta variant. This new strain may also be able to avoid vaccines and the body's immune response. Scientists are racing to find out more. With the US market closed for Thanksgiving on Thursday and only operating in a hangover induced half day on Friday, liquidity was in short supply. This likely exacerbated the wild swings in global markets. European stocks cratered with the main indices down 4 to 5% while Oil completely crumpled, giving up 12%. 

Nvidia, as one of the best-performing stocks in the year's best-performing sector (semiconductors), had much to lose but investors were not prepared to totally close their books on this one just yet. That is the fear as year-end approaches, that some names such as Nvidia with huge gains may be susceptible to year-end profit-taking. 

As our NVDA chart above shows, the gain for 2021 is nearing 140% and counting. Nvidia has delivered some exceptionally strong growth quarters and semiconductor demand has soared. It should be noted how most of the gain, over 100%, has occurred in the second half of the year.

Nvidia (NVDA) stock news

We await any more news in relation to the proposed purchase of ARM Holdings by Nvidia which is bogged down by regulatory concerns on both sides of the Atlantic. UK Ministers reportedly do not see the deal as likely as both US and UK regulators are said to be in weekly contact over the proposed deal. This is despite the fact that ARMS is actually owned by the Japanese SoftBank. The UK still sees it as a matter of national security. No such concerns were raised in 2016 when SoftBank bought ARMS for £24.3 billion. In fact, UK Chancellor at the time Phillip Hammond said  “Just three weeks after the referendum decision, it shows that Britain has lost none of its allure to international investors. Britain is open for business – and open to foreign investment.”...“Softbank’s decision confirms that Britain remains one of the most attractive destinations globally for investors to create jobs and wealth. And as ARM’s founders will testify, this is the greatest place in the world to start and grow a technology business.” 

Nvidia (NVDA) stock forecast

Nvidia stock is just holding the flag pattern support at $310. this is key. A flag pattern is a continuation of the current trend. Breaking $310, therefore, ends the current strong bullish trend. A break of $310 will lead to a potential move to $267 at the bottom of teh flag pole and the start of the price explosion.