NASDAQ: NVDA, also known as Nvidia, is the name that every online gamer and tech guy is familiar with.
Nvidia has created a series of high-end GPUs and powered them with artificial intelligence.
As the demand for high-end GPUs and AI is rising, it also makes investors think about NASDAQ: NVDA as a new stock to invest in.
If you are also wondering if you should invest in Nvidia or not, then this guide is for you.
Nvidia:
Jensen Huang, Chris Malachowsky, and Curtis Priem founded Nvidia in 1993. The company headquarters is in Santa Clara, California.
The company has made its name with application programming interfaces and graphic processing units.
They offer GPU based on advanced chip technology with AI powered software.
Nvidia is a pioneer in GPU and gaming technologies.
Its GPU’s are best for:
- Online Gaming: Online gaming requires fast processing. Nvidia released a series of GeForce graphic cards that help gamers to get the best performance. I also own a Nvidia GeForce RTX 4090.
- AI and Data Centers: Nvidia is not only known for gaming GPU but also a trusted brand for GPUs that can handle high-end computing, AI training, and machine learning.
Demand for Nvidia GPUs is rising.
The high demand for GPUs raised the price of new-generation graphic cards. It also brings the potential to invest in Invidia stocks as the market value of the company is growing.
Nvidia’s Stock Performance:
Should I invest in Nvidia Stocks?
If you also have this question, then you are a regular investor.
It is necessary to understand the company’s history, progress, and performance before investing in stocks.
The demand for Nvidia products is increasing, and this is causing an increase in its stock price.
Here are the Key Metrics:
- NVIDIA Corp Stock Price: NASDAQ: NVDA’s stock price was 4.32 USD in 2019. At the time of writing this article, the stock price was above $116. It shows more than 28% growth in 5 years.
- NVIDIA Market Cap: The company’s market cap crossed $1 trillion in 2024.
- Profits Booking: Nvidia is the pioneer in GPU technology. Its market share is growing, and investors are making a profit.
- Volatility: Like any other stock, NASDAQ: NVDA’s stock price is also volatile. The increase in price is due to the high demand for GPUs and the limited supply of semiconductors.
What Drive’s The Stock Price growth for Nvidia?
There are multiple factors:
- Growing gaming Industry: In 2024, the gaming industry is set to reach $282.30bn. By 2027, it will cross $363.20bn. This shows a growth between 16% to 18%. This growth impacts the stock price.
- Machine Learning and AI: Nvidia is aggressively using AI and machine learning to power up its GPUs. Other than gamers, industries like finance, healthcare, automotive, and scientific research also use Nvidia technologies.
- Increase in Data Centers: The demand for data centers is increasing. Companies are buying Nvidia’s high-performance computing systems.
- Auto Industry: Nvidia technologies are also empowering the automotive industry. Self-driving cars are using its technology.
What Are the Risks?
Every investment comes with a risk. If you can bear the calculated risk, you can grow.
Here are the risks involved with Nvidia stock investment:
- Valuation: The company’s market cap is over 1 trillion dollars. To ensure further growth, Nvidia must come up with better technologies.
- Limited Supply of Semiconductors: Nvidia’s business depends upon the supply of semiconductors. Any issues in supply can affect the stock price.
- Competition: Nvidia is also getting competition from Intel and AMD. Both are investing millions of dollars to develop better GPUs and high-performance machines.
- Regulations: Any change in regulation that impacts GPU, or semiconductors will impact the stock price.
Should I Invest in Nvidia?
Do you still want to know if you should invest in Nvidia or not?
If you have read everything I said till now, then I have already answered the question.
Yet, here is more for you:
- Growth of Gaming: The gaming industry is booming. Nvidia is working as the backbone of the industry. The future is bright if the demand for GPUs is there.
- Calculated Risk: Nvidia’s stock price is volatile. Keep an eye on semiconductor supply and news to analyze your calculated risk.
- Growth of AI: AI and machine learning are becoming more used technologies. Every industry needs these technologies to become efficient. Nvidia must do better to see future growth.
Conclusion:
Nvidia is undoubtedly leading the GPU industry. The rising demand for AI and machine learning is working as an add-on for NASDAQ: NVDA’s stocks.
Nvidia’s stock price is rising and becoming a strong choice for investors. While investing in Nvidia stocks, keep track of the company’s performance, market cap, valuation, and competition.
Now you know that Nvidia is a good choice for stock investors. But don’t forget to keep track of news and semiconductor supply.
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