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How to Buy Nvidia Stock Now, Price Forecast and Dividend Guide

November 22, 2021 17:08 PM

Should I buy Nvidia stock? In this guide, you will learn how to invest in Nvidia shares and get price forecasts, analyst outlooks and dividend information to make your decision!

Nvidia Corporation produces computer hardware, primarily focusing on integrated components and best known for its high-performance graphics processing units, also known as GPUs. GPUs are used to efficiently process computer graphics, making them necessary for video gaming, graphic design, animation, video editing and other creative tasks where substantial processing power is needed to manipulate computer graphics. Nvidia stock is publicly traded on the NASDAQ stock exchange with the ticker symbol NVDA. The public can buy and sell shares via a stockbroker or trade derivatives with futures, options, and CFD brokers.

Nvidia is performing very well at the moment, and many traders are rushing to buy this stock, often without doing the proper research. Before risking your money, you should thoroughly understand a company’s business activities, history, past performance, current business model, future plans, potential risks, analyst predictions, dividend schedule, and earning potential.

Nvidia Overview

Based on the latest information, here is a quick summary of important facts and information concerning Nvidia Corporation.

  • The company was founded in Delaware, the USA, on the 5th of April, 1993.
  • Nvidia was listed in the NASDAQ on the 22nd of January 1999 with the ticker symbol NVDA.
  • As of the 31st of January 2021, Nvidia had 18,975 employees in 29 countries.
  • In the fiscal year 2021, Nvidia generated $16.675 billion in revenue and $4.332 billion in profit.
  • Nvidia CPUs were installed in 15% of personal computers sold in the first quarter of 2021.
  • Nvidia chips have been used in Sony PlayStation, and Nvidia and Microsoft co-developed the chips used in the Xbox.
  • The company is attempting to acquire ARM, a leading CPU manufacturer, for $40 billion.

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Nvidia Initial Public Offering

Nvidia was listed on the NASDAQ stock exchange on the 22nd of January 1999. Ahead of the IPO, the company planned to sell shares between $7 and $9 but ultimately sold 3.5 million shares for $12, raising a total of $42 million.

On the first trading day, shares floated at $21 each, reaching a high of $23.44 and ultimately closed at $19.69. When adjusted for the five stock splits, equalling a ratio of 1:48, Each NVDA share was worth $0.41 on opening day.

Nvidia Share Price History

NVDA shares were sold for $12 per share in an initial public offering. On the first trading days, shares opened at $21. NVDA shares reached an all-time high of $227.22 on the 28th of August 2021.

Based on the all-time high, Nvidia has a market cap of $564 billion.

If you invested $1,000 in NVDA at the first day’s closing price of $19.69, you’d have bought 50 shares in the company. When adjusted for splits, you’d have 2,400 shares. Based on the stock price as of the 27th of August 2021, $226.36, those 2,400 shares are worth $543,264. Plus, you’d be earning $96 per quarter from the dividends.

Nvidia Stockholders

The top ten corporations with positions in Nvidia indicate interest among the largest investment firms worldwide.

Shareholder fund No. shares % owned
VANGUARD GROUP INC 47,986,507 8.61%
Fidelity Investments 45,449,958 8.16%
STATE STREET CORP 24,704,336 4.43%
EDGEWOOD MANAGEMENT LLC 17,989,080 3.23%
BlackRock Institutional Trust Company, N.A. 14,000,457 2.51%
BlackRock Fund Advisors 10,623,397 1.91%
PRICE T ROWE ASSOCIATES INC /MD/ 10,506,540 1.89%
GEODE CAPITAL MANAGEMENT LLC 9,676,662 1.74%
JENNISON ASSOCIATES LLC 7,150,048 1.28%
NORTHERN TRUST CORP 7,074,585 1.27%

Nvidia Stock Dividend Information

Nvidia is one of the few tech companies that pay dividends to shareholders. In the fiscal year ended 2021, the company paid $395 million in quarterly cash dividends to shareholders at a rate of $0.16 per share per quarter. Since the 2021 NVDA 4-for-1 stock split, the company will pay dividends at a rate of $0.04 per share. The current NVDA dividend yield is 0.07%

Nvidia stock splits

Nvidia has performed five stock splits in its history. The most recent Nvidia stock split took place on the 20th of July 2021, where the stock was split 4-for-1, meaning if you held one NVDA share before the split, you’d have four afterwards. The day before the split, Nvidia shares were trading at just below US$760 per share and began trading just below US$190 per share after the split.

NVDA stock split history

  • 27th of June 2000: NVDA stock was split 2-for-1, meaning every shareholder will get double the shares they had before the split.
  • 17th of September 2001: NVDA stock was once again split 2-for-1, meaning every shareholder will get double the amount of shares they had before the split.
  • 7th of April 2006: NVDA stock was split 2-for-1 for the third time, meaning every shareholder will get double the amount of shares they had before the split.
  • 11th of September 2007: NVDA stock was split 3-for 2, meaning for every two shared owned, the shareholder would have an additional one following the split.
  • 20th of July 2021: NVDA stock was split 4-for-1, meaning every shareholder will get four times the amount of shares they had before the split.

Based on the number of NVDA stock splits that took place over the years, if you owned just one NVDA share before the 27th of June 2000, you’d have 48 shares today.

Recent Nvidia Stock Forecast and Prediction

Nvidia currently has a strong buy consensus from professional Wall Street analysts and leading investment banks. The analyst predictions indicate modest room for growth.

  • Benchmark analyst David Williams set a buy rating on NVDA stock and set the company’s price target to $230.
  • Barclays analyst Blayne Curtis maintained an overweight rating on NVDA stock and raised the bank’s price target to $225 (from $205).
  • Credit Suisse analyst John Pitzer maintained a buy rating on NVDA stock and raised the bank’s price target to $225 (from $175).
  • Deutsche Bank analyst Ross Seymore maintained a hold rating on NVDA stock and raised the bank’s price target to $185 (from $150).

Should I Buy Nvidia Stock? Points to consider

Has Nvidia caught your attention recently? Perhaps the recent chip shortage or the company’s impressive double-digit growth rate. Or you’re interested in the growing demand for computing power which Nvidia is a front runner in the market. Before you start buying NVDA shares, you should consider whether the company’s current growth is sustainable and take a deeper dive into the fundamentals, price history, dividend earning, price history and dividend earnings.

Nvidia business model

Nvidia’s biggest business line is producing graphics processing units (GPUs) for laptops and personal computers, especially high-performance use cases, such as gaming and graphic design.

Besides its core GPU business, Nvidia also provides data centre solutions and products catered to artificial intelligence, virtual reality, autonomous driving and cryptocurrency mining niches.

The microprocessor market consists of components like CPUs, GPUs, and other microchips that almost every technology depends on, even washing machines, refrigerators, and televisions.

Nvidia is a fabless semiconductor company, meaning they only design the semiconductors but do not manufacture their chips. All manufacturing is outsourced to subcontractors such as Taiwan Semiconductor Manufacturing Company Limited and Samsung Electronics Co. Ltd, Foxconn Technology Group and others to perform assembly, testing, and packaging.

The barrier to enter the microchip market is steep. Chips manufacturing requires a completely dust-free environments using special machines. Some reports suggest that setting up a semiconductor fabrication facility, also known as a foundry, can cost several billion dollars and take years to construct.

Nvidia Competitors

Before investing in a company, you should be familiar with its competitors, who may limit growth or steal market share. Nvidia is well known for its GPU and graphics card products amongst the gaming community, but it is just making headway into new markets.

Nvidia’s biggest competitors are Intel (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD). Unlike Nvidia and AMD, Intel operates its own foundries rather than relying on outsourcing, putting it in a stronger position to be resilient against third-party supplier risks.

  Market cap Share price all-time high Revenue Net income P/E ratio P/S ratio
Nvidia (NVDA) $564.089 bn $227.22 - 28.08.21 $16.68 bn $4.33 bn 75.32 19.57
Intel (INTC) $218.632 bn $67.63 - 12.04.21 $77.87 bn $20.9 bn 9.53 2.56
AMD (AMD) $135.124 bn $179.67 - 12.04.21 $9.67 bn $2.49 bn ‪44.5 11.25

Where to Buy Nvidia Stock

One of the best ways to speculate on NVDA shares is to create a stock trading account with international CFD broker ZFX.

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ZFX - Trade Nvidia and dozens of other shares with ZFX

ZFX is an international CFD broker offering access to speculate on the price of NVDA and dozens of other companies listed on the New York Stock Exchange and NASDAQ. If you’re struggling to pick which stock you want to trade, ZFX offers indices such as the US Tech 100, DOW Jones 30 and S&P 500, meaning you can trade indices rather than specific stocks.

How to Buy Nvidia Stock Now

Nvidia shares are traded on the NASDAQ Exchange and the price is quoted in US dollars. Only professional brokers and large investment firms can register directly with an exchange. Therefore, you need to work with a broker like ZFX, which lets you trade NVDA shares. To start trading NVDA shares today, just follow this simple checklist:

  1.  The first step to trading Nvidia shares is opening a brokerage account with ZFX.Trade Walmart - Step 1
  2.  Choose between either a live or demo trading account. Demo accounts are great for practising your trading capabilities and getting familiar with the platform features and settings. To open a live account, you’ll need your proof of identity and a proof of residence to perform online identity verification.trade Walmart shares with ZFX - Step 4
  3.  Fund your trading account via bank transfer, e-wallet or your Visa or Mastercard.Make Deposit
  4. Once you’re inside the MetaTrader 4 platform, you’ll see a list of trading instruments on the left-hand side of the interface. Scroll down the list until you find Nvidia and click to open the chart.
  5. Right-click on the chart and select ‘new order’ from the context menu to open a new order. In the new order window, you can enter your order configuration, such as the number of shares you want to trade, plus any special order properties if you want to use a limit or stop order. When you’re all done, simply click ‘confirm’.

Investing in Nvidia Shares - Final Thoughts

Many analysts have a bullish outlook on Nvidia. Although the company is facing supply chain challenges, it has a strong position in an industry with huge growth potential. Nvidia has diversified into niches besides gaming, meaning it can benefit from the growth of other emerging sectors such as artificial intelligence, virtual reality and autonomous driving.

In 2020, global semiconductor sales reached $440 billion and are expected to reach $573 billion by 2022. The GPU market represents just $19.75 billion of the semiconductor segment. However, the global GPU market is forecast to reach $200 billion in 2027.

If Nvidia can successfully acquire ARM, it opens the door to even more opportunities in the wider semiconductor market.

The major risk facing Nvidia is supply chain issues. The company depends on third party manufacturers in regions like China, Taiwan and the USA, which is at risk of geopolitical tensions.

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