Buy Nvidia shares: Before Investing Read This Guide
Published: August 30, 2020 by Valentina
Anyone who deals with computer science, video games, or is simply a technology enthusiast knows the name Nvidia. But what they may not know is how much this company is growing. Indeed, buying Nvidia shares can be a very profitable investment, but you need to do some evaluations.
Investments must not be based only on the enthusiasm of a growing asset.
You must possess all the information needed to evaluate the trend impartially. This is exactly where OnlineTradingCourse comes into play, providing all the necessary data to invest in an informed manner.
Before investing you must choose the broker: They are not all the same and below, you can find a list of the most suitable to buy Nvidia shares safely. Among these, eToro also offers a revolutionary automatic investment system.
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 10€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
Nvidia: How the company was born
NVIDIA Corporation is an American technology company with the headquarter in Santa Clara, California.
The company was founded on April 5th, 1993 by Jensen Huang, an American from Taiwan and a former microprocessor designer at AMD, Chris Malachowsky, a former Sun Microsystems electrical engineer, and Curtis Priem former Sun Microsystems.
Nvidia is mainly involved in designing and manufacturing graphics processing chips for the gaming, information technology, and automotive sectors.
Its creators were strongly convinced that the gaming sector would explode and would need special chips… They were right.
Currently Nvidia has also expanded its production to mobile devices, with the creation of chips for smartphones and tablets, navigators, etc.
How to buy Nvidia shares
To buy Nvidia shares you need a PC, an internet connection, and an online broker without commissions.
Commissions can greatly affect your profits and with these brokers you can trade easily and cheaply.
The main advantages of these intermediaries are:
- You can access equity investments even with small capital (250 euros).
- Trading without commissions allows you to get profits even from small operations (few Euros).
- Online brokers offer contracts called CFDs (Contracts for Difference) that allow you to invest up or down and earn (if the forecast is correct) in any situation.
But the primary feature of an online broker without commissions is the license: Choose only brokers with a regular operating license issued by FCA or by an institution of the same level.
Buy Nvidia shares with the best brokers
The best brokers where to buy Nvidia shares have these characteristics in common:
- They have a FCA, CySEC or equivalent license.
- They offer the possibility to invest both up and down (short selling).
- No commissions are charged.
- They require a minimum deposit not exceeding 250 euros.
To invest in the Nvidia stock, eToro, ForexTB and Trade.com are the best brokers.
eToro: Semplicity and automatic trading
eToro is now the leader in the world of commission-free online brokers. Its reliability is also confirmed by its 7 million users.
FCA has provided it with a regular license for the UK. Below, you can see the Nvidia stock in the eToro trading platform:
To buy Nvidia shares, just click on the “Invest” button, decide how much to invest in the operation and whether to buy or sell the stock.
The trading platform is intuitive and full of tools and indicators for technical analysis.
But one feature makes eToro very different from other brokers: The possibility of making totally automatic investments.
This system is called Copy Trading and is based on the possibility of copying the market operations of the best traders in the world (on eToro) in a totally automatic and free way.
To use Copy Trading just follow these simple steps:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Here are some of the best eToro Traders (that can be copied):
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
For more details you can read our full eToro review.
ForexTB: Trading Course and Free Trading Signals
ForexTB is rapidly becoming very interesting among international traders, thanks to its highly advanced services and its excellent trading course.
CySEC guarantees the security of this broker with a license valid at European level.
ForexTB offers two trading platforms for every type of investor:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- Metatrader 4 is more technical and full of professional indicators and meets the needs of the more experienced traders.
The famous trading course made by ForexTB is a free downloadable ebook and is considered one of the most detailed and complete courses available on the market.
In addition to theory, ForexTB also thinks about practice by sending its Trading Signals processed by Trading Central. These are very precise indications, with a success rate of 70%, and are accessible for free.
Trade.com: Free training and minimum deposit
Trade.com is a very popular broker for investors, because it focuses on training and the easy accessibility of its trading platform.
This intermediary is also registered by FCA and operates in total safety.
The trading platform of Trade.com is very simple to use and allows you to trade on the markets very quickly.
Trade.com starts with the free trading course for all its users. It is a PDF that explains the basics of technical analysis in a clear way and can be downloaded for free by clicking the link below:
After the course, the learning process continues in an educational area divided into three sectors: Basic, Intermediate and Advanced. In these areas, each trader will be able to access information relating to his level of preparation.
Trade.com has tried to make trading affordable for everyone. For this reason, it offers the possibility to open a real account by depositing only 100 Euros.
To practice, you can use the free and unlimited Demo account, which offers all the features of the real account but without the risk of losing money.
Nvidia shares: Real-time listing
Buy Nvidia Stocks: Financial Situation
For the fiscal year 2018, Nvidia showed profits of $ 3.047 billion, with annual revenues of $ 9.714 billion and an increase of 40.6% over the previous period.
Its market capitalization was valued at over $ 188 billion as of July 2020.
Nvidia recently released its 2020 quarterly earning data. The hardware maker posted earnings of $ 1.80 per share (EPS) for the quarter, beating analysts’ $ 1.36 estimate.
Its revenue increased by 38.7% year-on-year. Nvidia has generated $ 4.59 earnings per share in the past year and currently has a price / earning ratio of 71.9.
These numbers say a lot about the health of this company. Growth is constant and the pandemic caused by the coronavirus has not in the least affected (apparently) the financial results of Nvidia, which seems a safe investment in all respects.
Is buying Nvidia shares worth it?
The Nvidia stock is listed on the New York Stock Exchange and is part of the famous Nasdaq index, which lists the main technology assets.
The price of Nvidia’s shares rose by 61.5% in the first half of 2020 (January to June).
The chart below clearly shows the performance of Nvidia shares. In the last 12 months, the growth has been formidable, despite the collapse in March 2020, the stock has immediately recovered, constantly showing new highs.
Buying Nvidia shares is worthwhile if analysts are right on the medium / long term forecasts.
Nvidia stock’s powerful performance for 2020 (until now) was largely driven by investor optimism that the company’s results for the first quarter of 2020 would be solid, and so it happened.
Investors had good reason to be bullish: Nvidia had published an optimistic outlook in February and, despite Covid-19, the predictions came true.
The performance of the Nvidia stock can also be influenced by competitors. Companies in the “semiconductor” subsector are considered alternatives and competitors of Nvidia and the main ones are:
- Texas Instruments
Some media giants are also considered Nvidia’s competitors; the main ones being Adobe and Netflix.
Buy Nvidia shares: Forum
Information on how to buy Nvidia shares or other stocks is often sought on online trading forums.
Even in these forums, it is written how investors were right to be optimistic and how easy it is to earn with online trading with the Nvidia asset. But in order to earn money, you need to study and understand trading, not make bets based only on euphoria.
Despite the low reliability of the information that can be found in online forums, here are some useful ones:
Nvidia’s growth was fueled by the AI (artificial intelligence) based data center platform.
In this department, revenues increased by 80% year on year. The gaming sector also performed very well, thanks to online sales, with revenues up to 27% compared to last year.
Buy Nvidia shares: Forecasts
Forecasts for Nvidia shares are driven by investor optimism, although some analysts fear the stock is close to overbought.
The optimism also comes from Mellanox Technologies: Nvidia closed with the company’s acquisition.
Mellanox is expected to contribute with a “percentage of teenagers” to the revenue for the rest of the year and Nvidia will immediately increase profits.
The growth trend is constant, as we can see from the graph above, but to get an overview of the Nvidia stock, we have analyzed the forecasts of some major investment companies:
- BidaskClub has upgraded the “buy” rating to a “strong buy” rating.
- Rosenblatt Securities raised its target price on Nvidia’s shares from $ 340.00 to $ 400.00 and assigned the stock a “buy” rating.
- Craig Hallum raised his Nvidia stock price target from $ 300.00 to $ 335.00 and gave the stock a “wait” rating.
- Needham & Company LLC have set a “buy” rating and a $ 400.00 price target for the company.
- SunTrust Bank raised their target price on Nvidia’s shares from $ 327.00 to $ 384.00 and assigned the stock a “buy” rating.
- Finally, Wells Fargo & Co raised Nvidia’s stock price target from $ 360 to $ 430.00 and gave the stock a “strong buy” rating.
Ultimately, forecasts for Nvidia shares are bullish in both the short and medium term.
- Analysts recommend buying Nvida shares aiming for the short term. The target price indicated in the next paragraph is a target within the reach of the stock, but its rise could go much further.
Buy Nvidia shares: Target price
Analysts at the eToro Trading Desk have issued unanimous buy ratings for NVIDIA.
Their twelve-month average target price is $ 400.00.
Nvidia is a solid, well capitalized company with attractive growth prospects.
Buying Nvidia stock is a great investment according to leading industry analysts; but trading isn’t an exact science.
It is always better to invest prudently and if you are not familiar with trading platforms, test your strategy on a Demo account before investing any money.
Here are the official links to access the Demo accounts of the best online brokers:
- Practice the eToro Demo account for free by clicking here
- Register for free on ForexTB and access the Demo account from this link
- Access the Trade.com Demo account for free from this link
Analysts believe that buying Nvidia shares is a great investment but some evaluations need to be done. Read our guide for more information.
Commission free online brokers are the most suitable trading platforms to buy Nvidia shares safely.
eToro is the broker that offers CFDs best suited to buy Nvidia shares and it also allows you to make automatic investments.
The target price of the Nvidia stock is set at $ 400.00 within the next 12 months.