NVIDIA Stock Price (NVDA)

What are NVIDIA stocks?

NVIDIA (or NVDA) stocks are company shares available for public trading via the Nasdaq Exchange.

The tech giant was founded in 1993, with a vision to introduce 3D graphics into the multimedia and gaming markets. It is now an industry leader thanks to its contribution to AI and the metaverse, both of which are disrupting industries around the world.

NVIDIA made its shares available to the public in 1999, initially priced at $19.69 each. It paid out its first dividend in 2006, with the next payout being made in 2012. Since then, the company has declared quarterly dividends, increasing the overall value of investment. As of 2023, sales have reached a record high, with revenue jumping to above $13.5 billion. The demand for the company's AI chip continues to soar – investing in NVIDIA has become more popular than ever before among traders and financial experts.

Historical performance of NVIDIA stocks

NVIDIA shares remained relatively stable during the company's first few years of trading. However, with the surge in demand for artificial intelligence tools and the transition from general-purpose to accelerated computing, NVIDIA's stock market value has jumped to more than $1 trillion. Its share prices have more than tripled in value.

The company boasts considerable pedigree when it comes to manufacturing chipsets. ChatGPT, a large language model-based chatbot, was trained using 10,000 of NVIDIA's graphics processing units. The boom in this technology has accelerated NVIDIA's profits, increasing the company's overall stock price and turning it into an excellent long-term investment.

The price of NVIDIA stocks as of August 2023 stands between 103.13 USD and 502.66 USD.

What influences the NVIDIA stock price?

Several factors can affect NVIDIA stock prices, and these can fluctuate massively with regard to supply and demand.

• Company news: Announcements, reports and other news coming out of the company can make the NVIDIA stock price today very different to yesterday. Events and developments in the tech industry more generally can also affect investor sentiment.
• Competition: NVIDIA's status as a leading computing and graphics company means that other tech giants are looking to outshine its performance. As the AI boom continues, NVIDIA could take even greater strides or face increased competition.
• Financial performance: The share prices of all major companies are affected by their revenue and income. The publishing of quarterly and year-end reports can resultantly influence share prices.

How can I trade NVIDIA stocks?

Opening a Tradu account means you can start trading NVDA stock using financial derivatives, so you don't need to own the underlying asset. The two such methods you can employ with Tradu are:

• CFDs: Contracts for difference involve the buying or selling of a contract relating to your predicted price movements. Your profit or loss will be dependent on the difference in value between the opening and closing of the contract.
• Listed Stocks: Listed stocks represent direct ownership of shares in a company. When you buy listed stocks, you become a shareholder and have voting rights, which means you can participate in decisions about the company’s future. You are also entitled to receive dividends, which are a portion of the company’s profits that are distributed to shareholders.

You can increase your market exposure by executing these trading methods using leverage, therefore opening a position with a smaller deposit. However, you should be aware that using leverage can magnify your losses.

How to invest in NVIDIA stock

Investing in NVIDIA directly means you'll take ownership of the underlying asset, as opposed to financial derivatives where this isn't the case. Investing is a good option if you're looking to capitalise on company stocks using a long-term approach, with the hopes of making a profit following a rise in share prices. To get started, simply add funds to your Tradu account and choose how much you'd like to invest.

Remember that you cannot use leverage when trading stocks directly. Owning the underlying asset will also mean that bearish markets won't represent opportunities for you to profit.

Advantages of trading NVIDIA stocks

• Market leader: As a leading and disruptive technology company, NVIDIA is a highly profitable business. That means you'll be gaining exposure to a top multinational company.
• High liquidity: NVIDIA stock is high in volume and therefore offers plenty of trading opportunities.
• Trade both market directions: You can speculate on the price movement without owning the asset by trading in bull and bear markets. Successful companies often have share prices that are constantly on the move, and you can take advantage of this using financial derivatives.

Disadvantages of trading NVIDIA stocks

• Leverage risk: Using leverage can put you at risk of magnified losses. It's essential to ensure that you have appropriate risk-management tools in place before you enter a position.
• Volatility: While NVIDIA is a leading company within the tech industry, that doesn't mean that its stock prices are always stable. External factors beyond your control can have a significant impact on NVIDIA shares, and these can occur when you least expect them.
• Limited portfolio: It's unwise to limit your trades to one company's stock, as this restricts your market exposure and makes you more vulnerable to unexpected shifts in its fortunes. It's safer and more profitable to trade across a range of markets, with NVIDIA stocks as just one avenue within that.

How to start trading NVIDIA stocks with Tradu

• Create an account: Sign up for your trading account online with Tradu. It takes just a few minutes.
• Choose a strategy: Decide on your trading goals, preferred markets, risk tolerance and available capital before choosing a strategy.
• Research performance: Take a look at historical performance and today's NVDA stock price before implementing technical indicators that can aid you in making predictions.
• Execute your position: Start trading using CFDs. Use our risk-management tools to limit your losses before monitoring and closing your position.
• Improve your knowledge: Check out our wide range of resources to sharpen your skills and increase your market exposure.
• Expand your portfolio: Diversify your portfolio by trading across multiple markets, including stocks and CFDs on stocks, crypto, forex, and commodities