NVIDIA Corporation is an American multinational technology company that specialises in the design and manufacture of computer graphics and processors. The world leader in artificial intelligence computing is based in California and publicly lists its stocks on the Nasdaq Exchange as NVDA.
Find out about the history behind NVIDIA, what affects the price of its stock and how to begin trading it with Tradu today.
Understand this large-cap stock and how you can use it to support your trading strategy.
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.
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.
Several factors can affect NVIDIA stock prices, and these can fluctuate massively with regard to supply and demand.
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:
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.
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.