NVIDIA Corporation Review and Analysis
Overview
Another stock to add to your watch list would that of the Nvidia Corporation, a large computer systems design services company, with an extensive array of computer hardware offerings, primarily graphics processing units (GPUs), which are marketed to the gaming and professional markets. AI-powered applications are at the core of many NVIDIA offerings and its DGX systems boast as very powerful tools for AI exploration, catering to the needs of many data scientists. It thus comes as no surprise that currently the NVDA is showing year-to-date gains of over 50%, and the crucial question is whether this trend is set to continue.
Similarly, to IBM, Nvidia is also resolved to continue investing heavily AI-powered supercomputers, with plans to create a supercomputer centre in the UK, worth more than $100 million. Nvidia has also recently launched the U.K.’s most powerful supercomputer, the Cambridge-1, which is said to greatly help the work of top scientists and healthcare experts by combining AI and simulation, opening up new horizons for the life sciences industry.
Through the new capabilities enabled by the Cambridge-1, the lives of millions of people across the globe stand to improve as groundbreaking research will become more effective and efficient. With so much going for it, the NVDA stock is indeed one of the hottest AI stocks around and you should seriously consider adding it to your investment portfolio.
By the end of the guide, you should know the following:
- A brief history of NVIDIA Corporation.
- NVIDIA Corporation stocks' historical performance.
- If NVIDIA Corporation stocks is a good or a bad investment.
- How to buy NVIDIA Corporation stocks.
- Where to buy NVIDIA Corporation stocks.
- NVIDIA Corporation stock price prediction: Where Will NVIDIA Corporation stock Be in the next few Years?
Fundamentals
Currently ranked as one of the top companies in the world, the Nvidia Corporation was established in April 1993 by Jensen Huang, Chris Malachowksy, and Curtis Priem, all of whom shared the belief that graphics-based computing was a hot trend and the way forward since it resolved many problems. They also thought that if such problems would be effectively addressed, then the sales of video games would drastically increase.
Based on these beliefs, they started out building computer chips and released their RIVA TNT in 1998, soon managing to acquire a strong reputation across the industry for the very capable graphic adapters they were developing. Following this success, the company went public in 1999 and has continued on a path of expansion and growth ever since, managing to impressively increase its revenue by five times from its 2005 levels to 2020.
Currently operating across the tech spectrum, the company focuses mainly on three different industry segments, namely gaming, mobile devices, and automotive electronics.
Pros and Cons of Buying NVIDIA Corporation stock investment
NVIDIA Corporation Pros and Cons
| Benefits |
Risks |
| Nvidia boasts strong secular growth |
The stock is expensive. |
| relative strength and market leadership |
Nvidia faces regulatory risk. |
|
It has rallied far and fast, forcing investors to wait |
The Benefits of NVIDIA Corporation stocks investment
The main pros of the Nvidia stock, which render it a worthy addition to your investment portfolio are as follows:
- Management Consistency: There is an observed consistency in the corporate governance of Nvidia since its founder, Jensen Huang, has remained its CEO since the beginning, while due to the consistency in management Nvidia is also considered as one of the best employers in the entire tech industry.
- A true leader in its sector: Since Nvidia GPUs can be found in most video games consoles and in many more automated systems, this gives Nvidia the pole position it its core, niche sector, i.e. in the semiconductor industry. Its strong product line ensures that it has a clear competitive edge and advantage over competitors, which translates in growing demand, increased sales and boosted earnings.
- A very strong future outlook: On top of its dominance in the semiconductor industry, Nvidia has managed to expand into many other sectors and fields, such as in car automated systems, AI and supercomputers, and many others, performing very well in all of them. This expansion and penetration into several niches, ensures a very optimistic and bright future ahead in terms of further growth for Nvidia and its shareholders.
Things we didn't like in NVIDIA Corporation stocks investment
Though admittedly the Nvidia stock has a lot going for it, before deciding to invest in it, you should take into account its main downsides, which are:
- Intensified, rigorous competition: Nvidia is coming under increased pressure by its rivals, as competitors step up their game in an attempt to catch up. Besides having to battle increased competition from companies like AMD, as Nvidia starts expanding into new fields, such as driveless car technologies, this brings it into a rival position and direct competition with other giants such as Google, Uber, and Qualcomm.
- Expensive share price: Based on fundamental analysis parameters, but also in plain figures, the Nvidia share price is very expensive and thus it is not affordable for all investors. Especially if you are a novice trader, wishing to start investing in small amounts, then you cannot afford to buy Nvidia stock, since each share would set you back several hundred dollars in current prices.
Historical performance
When Nvidia first entered the stock market through its IPO in January 1999, its initial stock price was $12 and the company’s immediate success meant that share prices rose by 64% on the first trading day.
The initial number of shares issued was 3.5 million and the stock has split four times since then, three splits being 2-for-1 and one split being 3-for-2, meaning that initial shareholders ended up with many more shares at hand.
Listed on NASDAQ under the ticker NVDA, this is a stock that has tremendously grown over the years, managing to hit triple digits in December 2016. Its upward trajectory has continued ever since and it is currently traded at around $770.
Nvidia dividend information
NVIDIA is rightly considered one of the best choices for investors who are after the generation of passive income through strong dividend yields, since the company has been paying dividends at the end of each quarter for the past ten years. Moreover, its dividend payout has consistently increased every year at a healthy rate, currently standing at 3.94% a year, with its most recent dividend payout being $0.64.
NVIDIA Corporation stocks price charts
NVIDIA Corporation Stocks Future Price Forecast Predictions
NVIDIA Corporation shares Price Predictions
| Year |
Low |
High |
| 2021 |
$695.87 |
$733.49 |
| 2022 |
$741.56 |
$783.81 |
| 2025 |
$980.74 |
$1,402.23 |
* The prediction figures outline some of the Potential high and low of NVIDIA Corporation shares price prediction forecasts for the years 2021, 2022, and 2025 based on the data collected from various sources meant strictly for educational purposes only and not taken as investment advice.
NVIDIA Corporation Shares Price Prediction for the year 2021
By the end of the year 2021, using forecast and algorithmic analysis, our price prediction forecasts suggest that one NVIDIA Corporation share will reach an average price of $714.68, which will be an impressive 662% growth from it's current market price.
NVIDIA Corporation Shares Price Prediction for the year 2022
By the end of the year 2022, our price prediction forecasts suggest that one NVIDIA Corporation share will reach an average price of $762.685, which will be an impressive 707% growth from it's current market price.
NVIDIA Corporation Shares Price Prediction for the year 2025
By the end of the year 2025, our price prediction forecast suggests that one NVIDIA Corporation share will reach an average price of $490.87, which will be an impressive 455% growth from it's current market price.
Where Can You Buy NVIDIA Corporation stocks
There are several online sites and platforms where people from across the globe can buy NVIDIA Corporation at good exchange rates and with low or no transaction fees.
To aid your quest we have comprised a list of some of the most popular methods and platforms to buy NVIDIA Corporation from and your strongly advised to consult this list before making your first purchase of or investment in NVIDIA Corporation.
