Everyone wants to have a stable and sufficient income. Some people put in money in real estate, others make deposits in bank accounts or invest in businesses. There is one more way to earn money – to purchase stocks of companies and corporations. American corporation Nvidia, the world’s largest graphic processing units and systems on chips producer, is one of such firms.
Nvidia products are used in video games, high-performance computing, the automotive industry, and professional visualization. While Nvidia is breaking new financial records, we will tell you how to become part of it quickly, easily, and safely.
About Nvidia Corporation
Nvidia Corporation is a US-based producer of graphic processing units (GPU) and systems on chips (SoC). The company was established in 1993 by three American engineers, Jensen Huang, Chris Malachowsky, and Curtis Priem. They thought a breakthrough in the computer industry was possible owing to hardware-accelerated computing that was too hard for general-purpose processors. The video games industry was rapidly developing back then. So, they decided to bet on GPUs for video games.
The company’s startup capital totaled $40,000. Today, Nvidia has a capital of over $418 billion.
28 years after its foundation, Nvidia is recognized as the world's largest manufacturer of GPUs and SoCs. It also produces equipment for 3D visualization and artificial intelligence. Nvidia’s brand portfolio includes GeForce, Tegra, nForce, Quadro, Tesla, and ION.
The corporation has over 50 representative offices worldwide. The number of its employees exceeds 13,000.
Nvidia stock
Nvidia held its first initial public offering (IPO) on the Nasdaq exchange in 1999 at the share price of $1,75. Today, the value of 1 Nvidia share is about $330.
The corporation has split its stock several times since 1999. Nvidia conducted 2:1 splits in 2000, 2001, and 2006. The other splits were 3:2 in 2007 and 4:1 in 2021. Before the July 2021 stock split, the price of 1 Nvidia share equaled $750.
Nvidia is a constituent of many popular stock indices, including the NASDAQ-100, the S&P 100, and the S&P 500. Nvidia stock (ticker symbol ‘NVDA’) is traded on Nasdaq, as well as on the Frankfurt, Hamburg, Berlin, Munich, London, and other European stock exchanges.
There are two possible ways of yielding a profit from Nvidia shares:
- Active trading. In this case, shares are bought at a certain price but sold higher. Since the beginning of the year, Nvidia scored gains of almost 125%.
- Dividends. In case of high earnings, the corporation makes dividend payments to its shareholders. In the past several quarterly periods, Nvidia's dividends have been $0.04 per share.
To reduce the risks of investing in stocks, you can diversify your investment portfolio by adding shares of different corporations.
Speculation on price fluctuations is another way to earn a profit from Nvidia stocks. In this case, a CFD broker is seen as a link between the market and traders. It takes a few minutes to register an account with InstaForex.
Use Trader’s Calculator by InstaForex to calculate your income.
Factors affecting Nvidia stock
Nvidia saw ups and downs in its stock price. The following factors could affect the value of Nvidia stock:
- State of the world and national economies
- Demand for shares
- Launch of new Nvidia products and changes in their features
- Revenue and net profit raised by the corporation and its subsidiaries
- Information about mergers and business expansions
- US stock market’s attractiveness to foreign investors
Nvidia shares fell in value during the 2007-2008 financial crisis and showed impressive growth in 2015 amid the hype around cryptocurrencies that boosted demand for high-performance graphic cards.
In the Analysis section of the InstaForex website, you can find out the latest market news.
Between 2017 and 2020, Nvidia’s revenue soared 1.6 times to $10.91 billion from $6.91 billion. Its net profit for the reporting period increased to $2.79 billion from $1.66 billion.
Nvidia’s third quarter of the fiscal year 2022 report logged a record increase in revenues from its gaming activities, sales of professional visualization products, and data centers, as well as its total revenue.
Nvidia’s growth prospects:
- Omniverse Enterprise, Nvidia’s new open platform built for virtual collaboration and real-time simulation that allows to create virtual characters and 3D worlds as well as to interpret speech. Thanks to the platform, the company could become one of the suppliers for the metaverse.
- Omniverse Avatar, Nvidia’s newly announced platform for creating interactive AI avatars. The platform will allow companies to develop smart assistants in any customer-facing industry.
Conclusion
Nvidia Corporation is the seventh biggest US company by market capitalization after Microsoft, Apple, Alphabet, Amazon, Tesla, and Meta.
If you want to invest in the tech giant and make money from its stock, go to the InstaForex website and register a trading account.
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