Should You Invest In NVIDIA Corporation?

Discuss investment strategies, review market research and real-time updates

Buy NVDA

22,968,601 NVIDIA Corporation positions opened on eToro

Investing in NVIDIA: What to consider

When looking at the NVIDIA chart, investors often look at satellite events that could influence its stock price. For example, since the company’s main activity is in the gaming realm, it is often susceptible to changes and announcements in that industry, such as major games or game console releases, or events which affect raw materials used to manufacture its products. The company’s main competitor is Advanced Micro Devices (AMD), which is also a GPU maker.

Follow NVIDIA (NASDAQ: NVDA) publications and financial reports in their Investor Relations Page.

Fundamental analysts who look into the NVIDIA stock quote, will often look for events that could boost or hinder the company’s growth. Every year, several major gaming companies release games for PCs and consoles, which constantly challenge the performance of these platforms. While consoles (such as XBOX and PlayStation) usually do not offer upgrade capabilities, PC gamers constantly purchase new hardware to upgrade their existing computers. Every year new standards in gaming graphics are reached, and when it comes to optimal performance of games, gaming-PCs are considered to be at the forefront, due their adaptability and the relative ease of upgrading their components.

Buy NVDA
Read More

Historical Price Charts

Past performance is not an indication of future results.

Read more about NVIDIA Corporation

Who should include NVIDIA in their portfolios?
  1. Traders who wish to invest in the tech sector: Since NVDA is a major company in the tech sector, yet not as famous as brands like Apple or Google, it is a good option to add depth to a portfolio.
  2. Thematic investment in the gaming industry: Investors who have faith in the gaming industry should consider adding NVDA to their portfolios, since it is linked to many stocks, such as those of game developers, PC manufacturers, mobile developers, and others.
  3. “Buy and hold” investors: The NVIDIA stock chart has been showing steady gains in recent years, and some analysts predict its stock price will continue to increase over time.
  4. Day traders: NVDA could also be a good option for day-traders, during and around major news announcements, new product launches, or new PC or XBOX game releases.
What drives NVIDIA’s stock price?

NVIDIA manufactures a line of products called GeForce, which are graphic processors for computers. It has been in the forefront of computer graphic processing for decades, and is a household name among PC gamers. Often, when a popular new game is released, an increase is seen in sales of products from the GeForce line, as many PC gamers wish to optimize their gaming experience.

Despite not offering upgrade capabilities, news related to Microsoft’s XBOX console could also have an effect on NVIDIA stock price. When a new XBOX game is released, traders could check and read reviews, to see if the console’s hardware is still up-to-par with other gaming platforms. If it holds up, it could serve as an indication to the longevity of the company’s technology, and increase both investor and consumer confidence.

Moreover, since NVIDIA operates in a much broader field than just the gaming market, such increase in demand, and quality-assurance could improve its credibility among clients in other industries. NVIDIA manufactures chips for the pharmaceutical, automotive, and other segments, and is a leading choice among many companies doing sophisticated research in fields such as artificial intelligence. The company’s main revenue source is the gaming industry, but it is also a force to be reckoned with in the tech sector as a whole. It is no wonder, then, that the company has spent more than $12 billion on research in its many years of operation.

Real-world events that could affect NVIDIA

NVIDIA is a global company, with operations in various parts of the world. Some components of its products are produced by the company itself, while others are outsourced. This means that from a logistic standpoint, there are many variables that could affect manufacturing and delivery times, some of which are out of the company’s control. For example, the company’s mobile-processor is TEGRA, manufactures in Yakutsk, Siberia since it requires a working-environments of extreme cold. While the area’s climate is perfect for this purpose, it could also, hypothetically, cause delays in delivery due to weather conditions.

At the end of the day, NVIDIA sells real products, made from an intricate array of raw materials. Its products contain metals, certain minerals, plastic, and other components, all of which need to be harvested, refined and produced in the real world. This adds another layer of possible complication, especially since some of these materials are rare, expensive, or exist in remote areas of the planet. That being said, the company’s long track record of success shows that, even when hardships in obtaining these materials surface, it is able to continue its operations.

History of NVIDIA

Founded in 1993 in California, NVIDIA is a leading developer of Graphic Processing Units (GPUs), and chips for the mobile computing, medical research and automotive industries. The company’s product line includes graphic processors for computers, portable gaming consoles, set-top boxes for televisions, and a variety of chips and processors used in other industries.. NVIDIA also has an important partnership with Microsoft, after being selected by the tech giant to develop the graphic hardware for Microsoft’s XBOX line of gaming consoles. The company has made impressive strides in recent years, most notably in 2016, in which it saw its stock price tripling.

The company held its initial public offering in 1999, enabling private people to buy NVIDIA stock, and invest in the NVIDIA Corporation. The company is traded on the New York Stock Exchange (NYSE), and is a component of both the NASDAQ and S&P 500 indices (Listed as NVDA). The company’s stock price is often influenced by happenings in the gaming and computing industries, while also being affected by fluctuations in its competitors’ stock price, and other global events which affect its segment. Over the years, NVIDIA has acquired many other companies in the industry, and has reached a market cap of over $60 billion.

Conclusion: NVIDIA is here to stay

NVIDIA has solidified its status as a global leader in the semiconductor industry, with significant presence in the gaming realm, and impressive achievements in the mobile space, automotive industry, and other tech-heavy fields. The opportunities available for the company in the future are endless. For example, the chip segment of the artificial intelligence industry alone is valued at $15 billion, and is likely to continue growing. NVIDIA’s strong presence in the tech sphere, and solid reputation could mean it has a long way to go forward.

Additionally, emerging opportunities in the gaming industry, such as the exponentially-growing realm of eSports, the continuous spread of virtual reality games and the ongoing battle between console makers, mean that NVIDIA will continue to strengthen its grasp of the gaming industry and continue to develop new technologies and products to maintain its cash flow.

*This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation.

*Past performance is not an indication of future results. All trading carries risk. Only risk capital you're prepared to lose.

Buy NVDA

Discover the eToro Advantage

Use eToro's advanced risk management tools to protect your positions. Enjoy hassle-free deposits and withdrawals, instant execution of trades and a free $100,000 demo account to practice your strategy.

Opportunity

Volatility means opportunity! Watch price changes reflect directly onto your portfolio

Start

Start trading within minutes - no physical purchase delays

Benefit

Benefit from falling prices as well as rising prices. Buy or sell instantly

Start Investing
Zero commission means that no broker fee will be charged when opening or closing the position and does not apply to short or leveraged positions. Other fees apply including FX fees on non-USD deposits and withdrawals. Your capital is at risk. For more information, click here.