How to Buy NVIDIA (NVDA) Stock

Start investing in NVIDIA with Interactive Brokers as your online brokerage.

Ever play video games on an Xbox console? If so, you can thank NVIDIA, the computer technology company hailing from Santa Clara, California.

NVIDIA is the chief rival to Advanced Micro Devices (AMD) in manufacturing graphics processing units (GPUs), but the company has a number of different initiatives, including the exploration of artificial intelligence (AI).

NVIDIA has been one of the Nasdaq exchange’s hottest stocks in the last few years, going from $15.88 on June 17, 2022, to an all-time high of $135.58 on June 18, 2024. Despite this rise, many analysts think the stock has more room to run as its stock price breaks new all-time highs.

How to Buy Nvidia Stock

If you’ve decided to invest in NVIDIA and add it to your portfolio, follow these steps to acquire shares.

Step 1: Decide How Much You Want to Invest in NVIDIA

The first step in an investment strategy is deciding how much you want to spend. Putting too much money into one stock can be risky, even with a stock performing as well as NVIDIA’s. Decide what percentage of your portfolio should be made up of NVIDIA shares before going to your brokerage.

Step 2: Find a Broker with Shares Available

You’ll need a brokerage account to buy NVIDIA shares. On the company’s investor website, lots of information about NVIDIA’s finances is available, along with contact info for the board of directors. You cannot purchase shares directly from the company. If you’re having trouble deciding on a brokerage, check out Benzinga’s list of the best-ranked online brokers.

Step 3: Place Your Order

After you’ve decided how much to invest and which broker you’ll get NVIDIA stock from, it’s time to place your order via your trading account and become a shareholder. Choose from either a limit order or a market order to acquire shares from your broker. Note that a limit order will only go through once your specified price is reached. With a market order, your trade will go through immediately at the current market price.

Best Online Brokers

Here's a short list of Benzinga’s top picks when it comes to online brokers that provide access to buying NVIDIA stock.

What is Nvidia?

In 1993, three computer programmers sat down to discuss the future of their industry. Jensen Huang, Chris Malachowsky and Curtis Priem came from varied backgrounds with different companies, but they shared a few ideas about where computer technology was headed.

Huang was a former designer with Advanced Micro Devices Corp. (NASDAQ: AMD), while Malachowsky and Priem were engineers with Sun Microsystems. All three agreed that graphics-based computing was going to be the next big thing and founded the company to push toward this goal.

NVIDIA’s founders believed that computers would evolve to become potent gaming and media consumption machines. In 1999, they presented the world with their GPU, a special type of circuit that increased the speed of image rendering on computer systems.

Called the GeForce 256, this GPU had the capability of processing 10 million polygons per second. By increasing the graphic manipulation speed, NVIDIA set itself up to be a player in several industries, especially game consoles and computer workstations.

Today, NVIDIA technology can be found everywhere. It sells products designed to perform the following tasks:

• Consumer-oriented graphics processing
• Professional design and content creation
• Mobile processing
• High-end image rendering for scientific industries

NVIDIA has also recently become a staple in the exploding AI industry because as deep learning systems grow in strength so will the demand for NVIDIA's GPUs.

History of Nvidia Stock

NVIDIA Corporation filed its IPO on January 22, 1999, (shortly before the release of its first GPU) with shares priced at $12. The IPO came to market only a few months before the beginning of the dot-com meltdown, which sent many tech stocks plummeting without recovery for several years.

By October 2002, NVIDIA shares were trading below $1. But unlike many of its computer-driven competitors, NVIDIA survived the dot-com bubble and continued to grow and innovate.

After pushing close to the $1 mark in November 2007, NVIDIA shares were hit again by the Great Recession, and prices receded back to the single digits. After another recovery, the stock traded sideways for a couple of years until the company announced its first-ever dividend in November 2012.

Four more years of sideways trading followed until the calendar flipped to 2016 and NVIDIA’s stock exploded. Between February 2016 and February 2017, NVIDIA stock price went from $0.73 per share to $2.54 per share.

Nvidia's stock began its upward trajectory in October 2022, experiencing a steady increase in value over the following months. By June 2024, Nvidia's stock had reached its all-time high, exceeding $135 per share. 

Future Outlook for NVIDIA

The outlook for NVIDIA is of great interest to Wall Street analysts. They have a 12-month price target of $135, indicating possible growth. However, predictions vary. Some analysts predict a low of $50, while others are more optimistic with a high of $200. This range shows differing views on NVIDIA's market position and growth in sectors such as AI and gaming. For investors, these forecasts present both opportunities and risks. Investing in NVIDIA may offer good returns if the company keeps innovating and growing its market share through 2025. Nonetheless, the wide range of predictions urges caution. Investors should assess their risk tolerance and current market conditions before deciding. Evaluating these stock price predictions is important for anyone wanting to benefit from NVIDIA’s potential growth.

Why Should You Buy NVIDIA Stock?

NVIDIA Corporation is a leader in the technology sector. It specializes in graphics processing units and artificial intelligence solutions. Demand for advanced computing is rising in many industries. This puts NVIDIA in a strong position to benefit from this trend. The company has a diverse portfolio that includes gaming, data centers, and AI. It is not only gaining from current market conditions but also planning for long-term growth. NVIDIA's focus on innovation and strategic partnerships adds to its investment appeal. There are several reasons to consider buying NVIDIA stock, which highlight its strong market presence and future potential.

Dominance in AI and Data Centers

NVIDIA is a major supplier of graphics processing units (GPUs), which are important for supporting artificial intelligence (AI), machine learning, and large data center functions. As AI technologies are increasingly integrated across various sectors like healthcare, finance, and autonomous systems, there is a growing demand for NVIDIA’s GPUs. This strong presence in AI infrastructure contributes to the company's revenue and reinforces its role in future technological advancements.

Strong Financial Performance

NVIDIA has a history of strong financial performance, which makes it a potentially good investment. The company regularly shows notable earnings, supported by significant revenue growth, solid profit margins, and effective cost control. Its financial stability, along with a strong balance sheet, allows it to handle market changes and invest in future opportunities, positioning it for success over the long term.

Expansion into New Markets

NVIDIA is branching out beyond its main gaming and AI areas, making strategic moves into new sectors such as automotive technology, especially autonomous vehicles, and the growing metaverse. In the automotive industry, NVIDIA’s platforms aid in the creation of self-driving technologies, while its involvement in the metaverse introduces new revenue opportunities in virtual settings. These expanding markets present significant possibilities, which may contribute to NVIDIA's potential for long-term stock growth.

Considerations Before Buying NVIDIA Stock

Before investing в NVIDIA stock, there are important factors to consider. NVIDIA is a key player в the semiconductor industry. It is well-known for its graphics processing units (GPUs). The company has experienced significant growth recently due to trends в gaming, artificial intelligence, and data centers. Potential investors should assess current market conditions and NVIDIA's financial health. Understanding the competitive landscape and the overall economic environment is also crucial. Additionally, consider the company's innovative capabilities, supply chain, and regulatory factors. This overview will highlight key points to think about before investing в NVIDIA, helping you make an informed choice.

High Valuation

NVIDIA's stock price has increased significantly due to its achievements within AI, data centers, and the rising demand for GPUs. However, this elevated valuation could pose concerns regarding potential short-term gains. Investors should assess whether the current stock price accurately represents its future earnings potential or if it may be overvalued, which could restrict its growth potential.

Market Volatility

NVIDIA, being a key player in the tech industry, faces considerable market fluctuations. Variations in technology trends, regulatory changes, and rising competition can significantly affect the company's stock price. Additionally, issues like semiconductor supply chain instability, geopolitical tensions, and changing AI regulations may impact NVIDIA’s overall performance.

Competition and Innovation

NVIDIA leads the GPU market but is facing increased competition from AMD and Intel, both of which are heavily investing in AI and semiconductor technologies. To stay competitive, NVIDIA needs to keep innovating quickly to ensure its products remain technologically advanced.

NVIDIA’s Rising Dominance

NVIDIA has been a front-running semiconductor stock on the Nasdaq exchange since the start of 2016 and currently shows no signs of losing steam. The semiconductor company has a bright future in several different technology sector areas, including AI. If NVIDIA Corporation and other AI companies in need of their hardware continue to make breakthroughs with AI and deep learning platforms, the stock could move even higher.

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