In this article, we are going to take you through the entire processes of acquiring NVIDIA stocks. We will show you how you can make money out of it, and also explain to you the easy step-by-step procedure you can follow to buying NVIDIA stocks.
NVIDIA is an American company located in the Silicon Valley and founded by the Taiwanese. It is a multinational technology company based in Santa Clara, California but was earlier founded in Delaware.
NVIDIA is a leading company in the global market for gaming graphics cards and holding well over t80% share of stocks which drives the company’s speedy growth.
Records have shown that the Company’s gaming revenue jumped 42% year over year in Q3 of 2021 to $3.22 billion and accounted for 45% of the top line. its biggest business seems set for stronger long-term growth.
The emerging applications such as the omniverse seem to be stimulant for its future growth. According to Wells Fargo, NVIDIA could open a revenue prospect running into billions of dollars in 2025. It is indeed an investment that will secure your future.
You must help yourself by reading this article with attention. And now come with us through the process.
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Let’s get in there together!
Is NVIDIA Stock A Good Buy?
We have enough information to say YES!. According to some Wall Street analysts offering about one-year price targets for NVIDIA stock, the average price is predicted to be $359.17 with a high forecast of $400.00 and a low forecast of $285.00.
The average price target signifies a 53.66% upward shift from the last price of $233.74 in the Q3 of 2021. Jensen Huang is optimistic that the current chip shortage will continue through 2022 which would be a source of growth.
However, we support the findings by FactSet that EPS will jump to over 74% in fiscal 2022 as revenue increases 60%.
This suggests that revenue and earnings of the Company will continue to grow up to 2023 but that may come at a slow growth rate.
NVIDIA (NASDAQ:NVDA) stock has witnessed a tremendous growth on the market in the year 2021 which made investors to feel comfortable with its revenue and earnings growth.
We can affirm that as the global chip shortage continues with no time seen to abate, it could take months for the supply of NVIDIA GPUs to catch up with demand and this is will surely push up the price. Economics 101; Lower supply of a particular commodity, when the demand of such commodity is high; leads to increase in the price of that commodity.
Is NVIDIA Stock overvalued?
As at January 26, 2022 the price of NVDA stock is $233.740 and available records shows that the NVDA price has been moving upward for the past 12 months.
The inherent value of NVIDIA using analytical tools put its value at $106.86 making us to conclude that NDVA stock is overvalued by roughly 118.7%.
Would NVIDIA Stock Go Up? See Expert Analysis
Our data supports that the stock would go up. It can maintain upward trend and remain a top growing stock in 2022 and beyond considering that Analysts have predicted it earnings to peak at 39% growth rate per annum for the next five years.
Our research employs ARIMA model using historical data which support the conclusion that NVDA is a good portfolio investment.
NVIDIA stocks move to New Highs After Strong Quarterly Report in 2021 which presented $7.1 billion revenue.
The adjusted earnings per unit stock is $1.17 which were significantly different from analyst estimates of earnings and revenue and NVDA is trading at a high price per earnings ratio of 96.
NVDA has been experiencing a steady increase in revenue every year since 2015 excluding 2020 due to the global pandemic.
We observed that revenue from fiscal year 2021 which ended in January was $16.7 billion representing about 52.7% revenue growth from 2020 and an astronomical 263% from 2015.
NVIDIA Stock Overview: All You Need to Know About (NASDAQ: NVDA)
NVIDIA is an American multinational technology company incorporated in Delaware and based in Santa Clara, California.
NDIVIA is aimed at designing graphics processing components for the gaming and specialized markets and a system on a chip unit for the automotive market. Since 1993 Jensen Huang has remained NVIDIA’S CEO.
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NVIDIA has gone public with a market cap of US$695b, making it a giant in the market. In recent time we have seen steady rush by organizations and individual investors to owning a share of NVIDIA stocks.
The main business is focusing on the video gaming market which has been very crucial to the company’s revenue and earnings growth with the video gamers turning into useful investors. Record shows that about 45% of the company’s main source of about $7.1 billion can be attributed to its video gaming hardware.
Is NVIDIA Stock publicly traded? See Details
NDVIDIA went public in January, 1999 with an IPO at $12 per unit stock. NVIDIA is traded on NASDAQ under the NVDA symbol.
Where to Buy NVIDIA Stock
You can buy NVIDIA stock publicly through its NASDAQ symbol (NVDA) and this is done by going through a good brokerage.
How to buy NVIDIA Stock
you can buy NVIDIA stock by carefully following six steps as shown below:
Step 1: Evaluate Stock Trading Brokerages
You will need to use an updated comparison table to help you locate the brokerage that fits your financial goal.
You do this to find out their degree of accessibility to the stock exchange market. You must ensure that your chosen platform has access to the NASDAQ and with affordable charges.
Step 2: Open Your Brokerage Account
The next step is to open an account with your chosen broker. This stage involves completion of some application and providing relevant information to the broker.
It is like opening a regular bank account online. You cannot trade in online stock without opening this account.
Step 3: Deposit Money and Confirm Your payment
You need to transfer funds into your brokerage account.
You have to deposit a certain minimum amount of money to the said account and wait for confirmation from your broker. Once the deposit is confirmed, then, you are set to commence trading.
Step 4: Conduct Research on the Stock
You will carry out research about the stock. This will help you find out whether the stock is yielding in the long-term or short-term period.
The research will help you know which of the stocks is a good buy at the moment.
Step 5: Purchase Now or Later
You will now type or indicate the amount of stock you wish to buy or the amount of money in dollars to be invested.
Once you indicate this information, there will be two options from which you could choose: Purchase Now or Purchase later. Your decision either to buy now or later is informed by the outcome of your research.
Step 6: Regular Monitoring of Your Investment
Once you have clicked “Purchase Now” then you have become a shareholder in NVIDIA.
It is your responsibility to put your eyes on your investment especially the price movement, company’s performance and other fundamentals.
Doing this will help you make continuous evaluation of your investment performance in order to optimize your portfolio.
Tips on How to Make Money from NVIDIA Stock
NVDA stock is attached to dividend and also has the potential for capital appreciation. You can make money from both ways.
NVDA pays a dividend of $0.16 per unit stock with average annual dividend yield peaking at 0.07% which is lower than the US market average of 1.83%.
Because it can continue to maintain high stock in terms of growth beyond 2022 analysts said that its earnings are expected to peak at an annual growth rate of over 39% for the next five years. This is a good money-making opportunity.
After skyrocketing 126% in 2021, NVIDIA market value currently stands at an amazing $665 billion which is huge compared to other companies.
To make money in NVIDIA stock in 2022 and beyond in two simple ways:
- Buy the NVIDIA stock and become a shareholder with the company. You will be receiving $0.16 of gains for each stock you buy. This means you are making money without the need for active participation in the market.
- You will need to participate in the market by monitoring your investment and taking decisions on buy-and -sell. This will help your investment to appreciate over time.