NVIDIA Stock Price and Forecast: Why is NVDA stock up today?

Nvidia shares (NVDA) soared on Thursday as investors piled into the metaverse concept. This has been brought into the mainstream universe by Facebook (FB) changing its name to Meta and banking its future on the whole metaverse concept. For those unfamiliar, a metaverse is basically a virtual world and is set to be the next internet, taking over every aspect of your online presence. It is a virtual and fully immersive 3D world. That is the concept and Nvidia is at the forefront of this metaverse transformation as it launched a test version last December of its own Omniverse. Nvidia is also mostly involved in semiconductor and chip manufacturing.

NVDA chart, 15-minute

NVDA is also one of the biggest players in the other hot sector right now, that of semiconductor chips. The sector may be too hot as no one can get their hands on enough of them. Nvidia will be well-known to gamers as their GeForce graphics cards are one of the industry leaders. After Qualcomm reported earnings on Thursday, this sector was extremely bulled up.

Nvidia (NVDA) stock news

While yesterday's 12% move was impressive, it is not as if NVDA stock has been lurking in the shadows. It has been front and centre of late as it tries to push forward with a deal to buy UK chip manufacturer ARM. Nvidia is trying to buy ARM in a $54 billion deal but has faced regulatory and competition issues from the UK and EU. A recent report from Reuters details how ARM chips power nearly every smartphone as well as numerous other devices. Customers from Apple (AAPL), Qualcomm (QCOM) and Samsung reportedly have concerns over the deal. The EU competition regulator is due to rule on the proposed deal by October 27, according to Reuters. 

The move yesterday was not particularly related to this deal, rather it appears a bullish note from Wells Fargo and earnings from QCOM were the catalyst. Wells Fargo chose to focus on the potential of the metaverse or omniverse from Nvidia (NVDA) stock and upgraded its price target from $245 to $320. "NVIDIA Omniverse Enterprise represents a significant platform expansion strategy for NVIDIA, which also entails a deepening recurring software story," Wells Fargo analyst Aaron Rakers said. Qualcomm (QCOM) has also published strong earnings yesterday and forecast strong demand for chips going forward which brought increased attention to the sector. QCOM shares closed up 2.4% but had been nearly 8% higher earlier.

Nvidia (NVDA) stock forecast

Even by the recent standards, this move is a strong one and is more symptomatic of the froth in markets right now. Clearly, we can see how this strong move is the biggest single-day gain in maybe forever for NVDA. The Wells Fargo note was not an upgrade it should be noted, just a price target change. Momentum, as we keep banging on, creates more momentum, and we are in one of the greatest periods for momentum trading in history.

There is no resistance at current levels as NVDA stock makes new all-time highs. Support at $267 is the breakout move, and below that is very nice support at $230. 

NVDA 1-day chart