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How To Buy Nvidia Stock (NVDA)

Nvidia Corporation is the creator of the GPU. It is used in laptops, portable technology, PCs, and other devices to display interactive graphics. Nvidia’s work lies at the heart of the most important technological mega-trends and has the potential for major growth.

Our guide will show you how to open a brokerage account and how to buy Nvidia stock today.

Quick History of Nvidia

Nvidia Corporation was originally from Delaware but currently runs operations out of Santa Clara, CA today. They are a global technology company that make graphic processing units for gaming and industrial uses. As well as chip (SoC) units for wireless and automotive applications.

Jensen Huang, Chris Malachowsky, and Curtis Priem co-founded Nvidia on April 5, 1993. The three co-founders thought that accelerated or graphics-based computing was the way to go for the next generation of computing in 1993 to address issues that general-purpose computers can not seem to.

Nvidia’s GPU development in 1999 fueled the rise of the PC gaming sector, revolutionized parallel computing, and transformed modern computer graphics. Developers utilize Nvidia’s CUDA application programming interface (API) to design systems that use GPUs.

The firm has recently branched out into mobile computing, developing Tegra mobile CPUs for mobile devices. 

The Good and the Bad of Nvidia Stock

Owning stock or shares in a firm has various advantages. Here are some of the benefits and drawbacks of holding Nvidia stock.

Pros of Owning Nvidia Stock 

  • Following excellent earnings and a better-than-expected outlook, NVDA stock surged the week of July 5th, 2021 but supply limitations have continued to linger. Nvidia is always worth keeping an eye on as they are a prominent chip manufacturer with exposure to a variety of high-end industries.
  • Nvidia’s new cloud gaming service will be closely monitored by investors and consumers as cloud gaming becomes more popular throughout the world. The GeForce Now program, which is now in its second year, has over 10 million users worldwide.
  • NVIDIA and Google Cloud have teamed together to combine their AI technology. Together, they made a platform that other businesses may use. It will sell AI-focused cloud solutions by combining Google Cloud’s Anthos platform with NVIDIA’s accelerated processing technology.

Cons of Owning Nvidia Stock 

  • Nvidia stock has a number of rival services which include Google Stadia, Microsoft Xbox Network, and Amazon Luna.
  • The recent acquisition of Arm by NVIDIA has alarmed several of NVIDIA’s chipmaking competitors, who fear that NVIDIA would employ monopolistic methods to limit the use of Arm’s technology or raise its pricing to unprecedented numbers.
  • Nvidia is the market leader in fabless chips. However, because of the worldwide chip scarcity, it might take months for Nvidia GPU supply to catch up with demand.

Outlook for Nvidia Stock

Nvidia stock is generally seen to be a worthy investment right now for a variety of reasons. The firm had a terrific first quarter this year (2021), with record sales driven by high demand for their product line.

NVIDIA’s first-quarter sales increased by 84% and its profits per share increased by 106% year over year. There are many reasons to be bullish on NVIDIA, given the company’s outstanding performance and the growing interest in gaming, cloud computing, and AI. 

On July 6th, 2021, Nvidia Corp. finished at its third consecutive record high, putting it on pace for a record eighth week of gains. Nvidia, NVDA shares, hit an intraday high of $833.68 early in the trading session on this day, and closed at $824.94.

Nvidia estimates $6.3 billion in sales for its fiscal second quarter, which ends later this month. NVDA is currently forecasting a profit of $15.83 per share this year. As demand for Nvidia’s goods grow, the company’s earnings are hoping to rise to $17.25 in profits per share this coming year.

Steps to Buy Nvidia Stock

To buy Nvidia stock, you must first create a brokerage account, then a trading account, deposit cash, and then you can start buying shares.

Step 1: Select a Brokerage

To start investing in Nvidia, you’ll need a brokerage account. Consider creating a brokerage account sooner rather than later.

This ensure that you are ready when the stock hits a price you are comfortable buying at.

Step 2: Open the Trading Account

After you’ve decided which brokerage is best for you, you’ll need to open a trading account with them. This account is for making stock trades and post transactions.

Step 3: Deposit Funds Into the Account

Once you’ve linked an accepted payment method to your account, you’ll be able to deposit cash to acquire Nvidia shares. You must determine how many shares of Nvidia stock you want to acquire when your account has been legally activated.

Step 4: Search for the Nvidia Ticker Symbol (NVDA)

Find the stock by looking up the ticker symbol (NVDA) or the company name Nvidia. But before you purchase the stock, do some research to see whether it’s a good investment for you.

Different stocks will be better fit for different portfolios, as individual investing needs will differ by person.

Step 5: Purchase NVDA Stock

At the bottom of each page, brokers will have a “deal ticket” where you may place your order. On the broker’s order form, you’ll input the symbol, NVDA, and the quantity of shares you want to buy.

With a market order, you can buy as many shares as you like. Or, you can use a limit order to delay the purchase until the stock hits a certain price.

Is Nvidia a Good Buy?

Nvidia is best known for its graphics processing units but the company’s technology has recently grown significantly in powering artificial intelligence and machine learning activities. Nvidia continues to be at the forefront of AI hardware technology, releasing more powerful and faster solutions for AI workload computing.

NVDA stock has risen more than 50% year to date, outperforming the S&P 500 by a wide margin. Nvidia shares have also recorded a seven-week winning streak, something the firm hasn’t done since June 2017.

Their stock has risen almost 250% in the previous three years as the company’s gaming and data-center chip operations have developed greatly. Nvidia should be able to expand its revenue and sustain the company for decades to come if they continue collaborating with other market competitors and continue ongoing expansion of the computer chip sector.

If you want to learn more about how to invest successfully in the stock market, or want to know if investing in Nvidia stock is for you, you should speak with a financial advisor.