Video games have been a part of our culture for quite some time now. And is now considered to be one of the fastest growing sectors globally. That growth in its popularity, coupled with the events this year which prompted people to just stay in their homes, indicate that the trend in its popularity will not go down anytime soon.
With this accelerating demand on video games, the quality of the graphics and gameplay of these products will also surely be heading up, as competition will continue to heat up. NVIDIA has been at the forefront of this rise in the video gaming industry.
Nvidia generates its revenue mainly from the sales of GPUs (or graphic processor units).
GPUs are high-power processors which are responsible for these impressive graphics in computers (and computer games).
The company also produces Tegra processors.
These are SOC (system-on-chip) devices which they make for Nintendo Switch, and other systems – such as those in the navigation and infotainment sectors.
This pandemic and the ongoing change in consumer behavior seemed to have benefitted most of those in the technology industry, from e-commerce to video games producers, as more people are opting to look for other ways of doing their usual activities (such as entertainment) without leaving their homes.
To begin with…
In 1999, Nvidia first introduced the GPU to the world. Since then, they have been steadily setting new norms on graphics, modern computing, and gaming experience.
By providing them the GPUs, Nvidia has been partnering with the leading names in the PC and notebook manufacturing space – such as Dell, Toshiba, HP, and Sony.
Nvidia also has been producing the SOC module for Nintendo’s Switch console.
Here’s the deal:
It is of utmost importance that you go over your financial condition comprehensively, before proceeding to participate in the world of financial markets.
With that being said, the list stated below will give you a simple yet extensive guide on how to invest in NVDA.
Table of Contents
- Why Trade NVIDIA Stock?
- NVIDIA Stock Performance
- NVIDIA Stock Forecast
- How to Trade NVIDIA Stock?
- Frequently Asked Questions (FAQ)
- Best Brokers for Trading NVIDIA Stocks
Why Trade NVIDIA Stock?
Nvidia has been one of the giants in this technological surge.
Their new graphics cards are remarkable. The company said that its GeForce RTX 30 Series GPUs offer 2x the performance and 1.9x the power efficiency of its earlier-released generations of chips.
And according to the website Newzoo, gaming sales worldwide are projected to further rise to $200 billion by 2023.
Nvidia’s brand is already synonymous to graphics. It has proved that it has established its own niche.
Another thing to note…
Furthermore, Nvidia also has a data center department which creates and distributes products aimed at stream processing or general-purpose graphics processing units (GPGPU).
The target market of this brand of products (now branded as Ampere) is the high-performance accelerated computing sector.
Why does this matter?
Now, let us look at the numbers. Last August, they announced a record revenue of $3.87 billion, which is up by 50% year-on-year.
It’s Data Center department also registered a record revenue of $1.75 billion, which is up by 167% year-on-year.
This high-growth company also has been regularly rewarding its investors with dividends.
Now get this:
Even though they already have a foothold in the processing and gaming space, they still aim to expand their market and further improve their technology when they acquired Mellanox Technologies last April 2020. Mellanox specializes in high-speed network computing in data centers that are cloud-based.
- Copy investment portfolios of top NVIDIA traders
- Trade stocks commission-free
- Practice with a free demo account
- No overnight fees
- Risk management tools
CFDs (or contracts for differences) are trading instruments which enable traders to speculate and trade that security regardless of what direction the market is in.
And eToro is one of the leaders in stocks CFD trading. Please do check out a more detailed review of eToro here.
The company also is a game-changer when they introduced the social trading feature. Today, it is the world’s leader in the social trading space.
Now get this:
The platform is both simple and comprehensive in terms of the providing the essential features that traders will appreciate.
Both the beginner and the more-experienced ones will find eToro’s platform easy to maneuver around.
Being the pioneers in social-trading, they supplied a particular need of traders, regardless of what their relative market experience is.
It benefits the beginners because they are able to quickly search who the top performers in the platform are – study their trades and simply copy their trades as well.
These actions will definitely help in shortening their learning curve.
The more experienced traders will also have a medium of sharing their knowledge and would further be rewarded in doing so.
Amazing right? There’s more.
Have you heard of zero commissions?
The more active market participants may execute as many trades as they wish to and would not be charged additional fees, such as ticket fees, management fees, or other markups.
They have also introduced CopyPortfolios, yet another innovation to their already existing social trading feature.
This new feature will provide their clients opportunities to improve their trading performance by:
- Top Trader Portfolios – New participants may benefit from the knowledge and experience of more seasoned traders.
- Market Portfolios – Their clients will benefit from this component by identifying particular sectors in the market which are relatively stronger than the other sectors. Once identified, they could also identify which are the stocks belonging to that sector, thus providing them the opportunity to further increase their gains – and diversifying their portfolio into other stocks as well.
eToro is fully regulated in the countries where it has been offering its services.
So rest assured, that they are following the legal requirements that have been set by the different countries.
The regulatory bodies are that of below:
- CySEC – Cyprus Securities and Exchange Commission
- FCA – Financial Conduct Authority
- ASIC – Australian Securities and Investments Commission
- Competitive spreads for NVIDIA
- Trading with as little as $100
- Fast and reliable order execution
- Risk management tools
- Fully regulated by the FCA, CySEC and ASIC
Another leader in providing stocks CFD trading is Plus500.
Their platform offers a very wide array of CFD product choices, ranging from stocks, commodities, forex pairs, crypto, or even indices.
Should you be interested to be further introduced to Plus500, feel free to proceed here.
You only have $100 in your trading account but by using their leverage, you may have a trading capital of up to $3000.
Another thing to note…
Plus500 is fully-regulated by established institutions such as:
- Plus500CY Ltd authorized & regulated by CySEC (#250/14).
- Plus500UK Ltd authorised & regulated by the FCA (#509909).
- Plus500SG Pte Ltd, licensed by the MAS (#CMS100648-1) and IE Singapore (#PLUS/CBL/2018).
- Plus500AU Pty Ltd (ACN 153301681), licensed by:
ASIC in Australia, AFSL #417727, FMA in New Zealand, FSP #486026; Authorised Financial Services Provider in South Africa, FSP #47546. You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.
NVIDIA Stock Performance
Nvidia’s stock price began the year 2020 by closing at $239.91/share; and has also registered a few all-time highs this year.
NVIDIA Stock Forecast
Here’s how we think the company might fare in the future.
The forecasts provided below are not guarantees of how future performance will actually be like and will involve real risks.
Please do keep that in mind.
2020: Accelerating Market
The last quarter showed that their revenue increased by 50% year-on-year.
The demand for gaming laptops has been strong, which then led to a 26% increase in sales in their gaming department.
Further strength has also been registered in their Tegra SOC products (which Nintendo Switch uses).
This trend looks to further continue as more people will look to online games as their source of entertainment as they continue to stay at home.
2021: Market Expansion
Their acquisition of Mellanox for $7 billion indicated that they are serious to gain market share in the data center industry as well.
The company saw demand strength across different markets, which includes supercomputing centers, cloud providers, industrial applications, among others.
With this branching out, their growth for 2021 and beyond looks bright.
How to Trade NVIDIA Stock?
Simply follow the steps below and you're good to go:
Open an account with an online broker.
For you to trade NVIDIA stock and other company shares, first you need to open an account with a brokerage which offers a platform for trading.
Signing-up for an account only takes a few minutes to accomplish and after completing this process, you need to make a deposit so you can start investing.
Open your broker's trading platform.
Let's say you have opened an account with a specific brokerage and you have already funded it. The next step to do is to open their platform to start trading.
Look for the NVIDIA stock (symbol: NVDA).
After opening the platform, search for the NVIDIA stock by using the search bar and entering either "NVIDIA" or its stock symbol "NVDA".
Select Trade and set the amount.
Click on "Trade" and specify the amount that you wish to invest. You may also set several specific parameters depending the features that are offered to you by your broker.
Execute the order.
Initiate the trade by executing the order.
Should I trade NVIDIA stock?
NVIDIA, like many technology-related stocks, benefitted from the events this year.
But it has already shown its dominance in the processing sector because of its high-powered chips that are being used in video games.
With them venturing out in the data center industry, it indicates that it aims to be a leader in other markets as well.
This bodes well for their future.
Frequently Asked Questions (FAQ)
How Much is the NVIDIA Stock?
Here is the current stock market price of ( )
Who Owns the Most Shares of NVIDIA?
As of the end of the most recent quarter, the top three holders of NVIDIA are Phil Knight, Mark Parker, and Andrew Campion.
How Many Outstanding Shares Does NVIDIA Have?
NVIDIA has 1.24B shares outstanding.
Where Can I Trade NVIDIA Stock?
You may trade your NVDA shares or CFDs from either of the brokers that were mentioned above. As eToro and Plus500 are both leaders as CFD trading providers.
Best Brokers for Trading NVIDIA Stocks
Based on our in-depth analysis, below are the best brokers for trading NVIDIA stocks CFDs.
All you need to do is click on the NVIDIA Page of your broker of choice and you'll be directed straight to their stock trading page.
Min Deposit: $200
Regulation: CYSEC, FCA
Min Deposit: $100
Regulation: FCA, ASIC, CySEC
Min Deposit: $100
Regulation: CBI, ASIC, FSC, FSA, FSB
Min Deposit: $5
Regulation: IFSC, ASIC, CySEC