Topic: How To Invest

Wall Street Stock Forecaster Hotline Friday, September 18, 2020

Article Excerpt

NVIDIA CORP., $487.57, Nasdaq symbol NVDA, remains a buy for aggressive investors. The company is a leading designer of 3D-capable video chips; they make video games run more smoothly and appear more lifelike. Nvidia has also adapted its chips for other applications, including artificial intelligence, datacentres and self-driving cars. Nvidia will now buy U.K.-based Arm Holdings from Japan’s SoftBank Group Corp. (Over-the-counter Pink Sheets symbol SFTBY). Arm designs energy-efficient chips that power mobile phones, tablets, watches and a wide variety of other devices. Like Nvidia, it licenses its designs to other chipmakers instead of operating its own plants. Nvidia will pay up to $40 billion for Arm, which is equal to 13% of Nvidia’s $301.2 billion market cap (the total value of all outstanding shares). The company will initially pay SoftBank $21.5 billion in stock and $12 billion in cash. It will also issue an additional $1.5 billion in shares to Arm’s employees, then pay up to $5 billion in cash or common stock to…

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