Nvidia’s (NVDA, $163.31) surprising acquisition of Mellanox (MLNX, $118.07)
Analysts are still trying to figure out what Nvidia Corporation’s $6.9 billion acquisition of Mellanox Technologies Ltd. could mean for the long term, as the two companies’ businesses overlap very little.
Nvidia is famous for its state-of-the-art graphics oriented chips. Over the years, it has seen an upsurge of its usage and relevance across new workloads, especially in data center markets including applications in high-performance computing and artificial intelligence.
Mellanox, on the other hand, specializes in networking chip and card making and has very little to do with actual computing. It is unclear what the combination of the two could mean in terms of revenue as both technologies already work side by side on the same servers used in high workloads.
Analysts argue that Mellanox’s $1.1 billion revenue will not be transformational for Nvidia. But Mellanox's 24.8% operating margin under Nvidia’s control might help improve the operating margins to more than 30%. Nvidia’s gross margins in 2018 came in at 69.2%. As such, the deal should be accretive to Nvidia within the first year given the attractive metrics.
Even though there is no product overlap between the two companies, the acquisition could be seen as Nvidia’s attempt to diversify its offerings and improve its competitive standing against other large data centers and networking rivals. Nvidia’s focus on AI could be a potential competition to China’s growing interest in the field.
Overall, Nvidia’s acquisition of Mellanox seems like a long-term bet that computing and networking will one day come together.
NVDA sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for NVDA moved above the 200-day moving average on June 27, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for NVDA just turned positive on June 25, 2025. Looking at past instances where NVDA's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NVDA advanced for three days, in of 365 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 325 cases where NVDA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 10 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
NVDA broke above its upper Bollinger Band on June 24, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. NVDA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: NVDA's P/B Ratio (46.296) is slightly higher than the industry average of (9.368). P/E Ratio (51.400) is within average values for comparable stocks, (63.626). Projected Growth (PEG Ratio) (1.976) is also within normal values, averaging (2.351). NVDA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.020). P/S Ratio (26.525) is also within normal values, averaging (36.831).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a manufacturer of computer graphics processors, chipsets, and related multimedia software
Industry Semiconductors
Advertisement