How to Buy Nvidia Stock
Last Updated: January 12, 2023
Cryptocurrency is exploding in value. And with that comes the growing interest in mining it and investing in it, as well as using it as a currency. Of course, that means cryptocurrency mining rigs (computers built around powerful or specialized graphic cards) are increasingly in demand.
Even without crypto mining, the use of GPUs has been increasing steadily over the years. Nvidia is one of the top manufacturers of graphic cards and has secured its place as one of the leaders in manufacturing high-end graphics processing units.
Because of this, we often get messages inquiring how to buy Nvidia stock or which cryptocurrency to invest in. In this article, we’ll cover the first question and a bit more. You’ll find out everything you need to know about the company and its stock performance.
About the Company
Before we start explaining how to buy Nvidia stock, let’s learn more about the company itself. Nvidia is an American global technology corporation based in Santa Clara, California. It was founded in 1993 by Jen-Hsun Huang, Curtis Priem, and Christopher Malachowsky.
Nvidia focuses on designing and manufacturing high-end graphics processing units for mobile devices and personal computers. The company became well known in the computer gaming industry after launching the RIVA series of graphics processors in 1997.
In just a couple of years, the company presented superior 3D graphics quality by launching GeForce 256 GPU. After this move, the company ensured rapid growth and global success as well as good Nvidia stock value.
Nvidia went public in January 1999 with a new stock issuance, priced at $19.69 each. This move allowed the company to raise capital from public investors. Like many companies with a strong IPO, Nvidia has a great potential to deliver substantial capital gains decades down the line and exceed the original investment amount. With an extended display of computing technologies and artificial intelligence, the best is yet to come for Nvidia stocks.
Should You Buy Nvidia Stock?
Is Nvidia a buy for you, and can it enrich your stock portfolio? Depending on the current state of the stock market and individual preferences, it could be the right choice for a careful investor. However, beginners should keep the following in mind:
- Every stock might lose its value.
- You are at a higher risk of losing your funds if you don’t diversify your portfolio.
- You should always consider the Nvidia stock forecast based on previous performance analysis before investing.
- Online trading can be risky if not done right.
No matter how cautious you are and how close you follow the predictions, stock value can always change unexpectedly. That’s why having stocks from different companies can reduce risk while giving you a chance to make more profit. If you go for online trading, make sure you see red flags and avoid possible scams.
Nvidia stock performance
Nvidia’s financial performance remained strong during the pandemic. The company reached record sales in the first quarter of 2021, thanks to a strong interest in online gaming and remote computing services.
Nvidia market cap is approximately $496.5 billion. In Q1 2021, the company’s net income reached $5.66 billion, making it the highest recorded figure in the company’s history. It is an 84% increase from the same period a year ago and 13% up from the previous quarter.
Despite warning signs such as building assets faster than its revenue growth rate over the past five years and a flawed Sloan Ratio, NVDA stock prediction is optimistic.
It’s evident that Nvidia’s operating margin is expanding, which, along with consistent growth in Revenue per Share, is a very good sign. Nvidia has presented revenue and earnings growth predictions with a strong Altman Z-score of 27.52, which suggests that the company is in a solid financial position. The 52-week period performance is $113.56–$208.75. Nvidia price target is $200, on average, with a high estimate of $250. One share of stock is worth $199.27. All data is current as of August 12, 2021.
Your portfolio
Creating a diverse portfolio is a smart choice if you are looking to become a careful investor. Therefore, you should consider adding Nvidia stock to your portfolio and ensure a good investment in the long run.
While maximizing your potential returns is a good strategy, it shouldn’t come at the expense of minimizing risks. That’s why your portfolio should consist of 20–30 different companies with not more than 5% of stocks from the same company. Still, make sure you know enough about the industry and the company before buying any stock.
How to Buy Nvidia stock
If you do not own any stock in the company and want to, you’re in luck as it’s still in the buy range. You can buy it through any traditional brokerage account. Many companies, such as Charles Schwab, Fidelity, and others, will allow you to buy or sell individual stock. As one of the leading semiconductor companies, it is listed on the NASDAQ as well. Here’s what you need to do to buy Nvidia stock:
- Find the right trading platform by comparing them and choose the one that suits you.
- Start your application and open your brokerage account.
- The next step is to fund your account by confirming your payment details.
- Search for it by entering the NVDA ticker symbol. Make sure you do thorough research before you purchase.
- You can choose whether to purchase it now or later. If you want to delay your purchase until the stock reaches the wanted price, choose a limit order. You can select the desired number of Nvidia shares by editing your market order.
- Check-in on your investment from time to time. This way, you will optimize your portfolio and increase your chances of catching a good deal.
Online brokers/trading platforms
You can make an online purchase of stocks for a fee or commission via an online broker. Always start with a small investment, follow market performance, and read about smart buys. If you choose to utilize the services of an online stock broker via some of the legit online trading platforms, you can get a great and safe deal.
Final Thoughts
Thanks to many smart moves, Nvidia earnings are high. The company kept the main focus on increasing the power of the GPUs, integrating artificial intelligence with 3D virtual reality gaming, and improving data center processing. With this being said, it’s a wise choice to invest in Nvidia. It will help you diversify your portfolio as well.
Is Nvidia a buy? With a significant focus on video games and artificial intelligence expanding, the company’s earnings will only continue to grow. Many technological innovations need Nvidia’s inventive products, such as GPUs, which is why their stocks will continue to be a smart buy for patient investors, many of whom are looking into how to buy stock in Nvidia.
Nvidia’s stock value will probably have its share of ups and downs. However, long-term investors will maximize their returns by holding onto Nvidia shares.
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FAQ
Being a public company, Nvidia has multiple owners. The top individual shareholders are Jen-Hsun (“Jensen”) Huang, Colette M. Kress, and Mark A. Stevens. Of course, institutional shareholders also hold a large percentage of company stock, and the largest ones are Vanguard Group Inc., BlackRock Inc. (BLK), and FMR LLC.
As of August 2021, Nvidia was worth $4.33 billion. This net income is the highest reported figure of the company.
In short, yes. Nvidia stock seems to be overvalued. The company’s financial condition is excellent, and the profitability is good, but its growth is average compared to many giants in the semiconductors industry.
Nvidia pays a non-trivial $0.16 dividend per quarter or $0.64 per year. That’s one of the reasons a lot of investors are looking into how to buy Nvidia stock and reap the benefits of the booming cryptocurrency and video gaming market.
ABOUT AUTHOR
Getting weightlifting medals in my late 20's, living abroad, and finishing security studies somehow led me to build an HR career in a couple of different industries. But a nine-to-five doesn’t stick if you don’t have time for something meaningful. After my short stories were published a decade ago, writing for the crowd has never stopped. My list of interests is long, and the financial industry is my new craze. Following the experts and teaming with great folks drove me to spendmenot.com, where I explore this fascinating field and share my journey with you.
