Published on: June 05, 2024
| Table of Content |
| What is Nvidia? |
| Nvidia’s financials |
| Nvidia stocks reached all-time highs |
| What’s next for NVIDIA? |
| Tip from amana: Here’s everything you need to know about Nvidia’s Stock Split |
| Want to buy Nvidia stocks? |
| Buttom line |
In the ever-evolving landscape of tech stocks, Nvidia stands out as a prominent player, consistently making headlines with its innovative products and strong financial performance. For investors looking to enter this dynamic market, buying Nvidia shares can be a strategic move. In this blog post, we'll explore the process of purchasing Nvidia shares.
Established in 1993, Nvidia quickly transformed the semiconductor landscape with its innovative programmable computer chips, focusing on GPUs renowned for image rendering and concurrent calculations. This shift expanded beyond gaming, impacting advanced computing and AI, challenging the dominance of Intel and AMD in the U.S. chip sector.
Nvidia's early entry, supported by robust software infrastructure and efficient supply chains, solidified its leadership in GPU production. Its chips became essential across industries, powering technologies like Tesla's driver-assistance systems. The pandemic accelerated Nvidia's growth, meeting soaring demands for remote work and cloud computing solutions. (Source: NBC News)
Some of its competitors include Intel Corp., Advanced Micro Devices, Huawei, Alibaba Group, Alphabet Inc., Amazon Inc., and Microsoft (MSFT).
For Q1 2024, Nvidia reported earnings of $6.12 per share and $26 billion in sales for the quarter ending April 30, surpassing analyst expectations of $5.60 per share and $24.59 billion in sales.
Profits and revenues soared by 628% and 268% year-over-year, respectively, marking Nvidia's most profitable and highest sales quarter ever.
This growth was driven primarily by its AI-focused data center division, which generated $22.6 billion in revenue, a 427% increase from the previous year.
Additionally, Nvidia announced a 10-for-1 stock split on June 7, reducing its share price from $950 to $95 while maintaining its valuation. (Source: Forbes)
However, Nvidia's meteoric rise doesn't end here as Nvidia's stock soared to a new record and traded above $1,100 for the first time, closing above $1,140 on Tuesday, May 28, 2024. This milestone, moreover, was driven by Elon Musk's AI startup xAI, which raised $6 billion in a Series B funding round, which boosted Nvidia's stock by up to 8%. (Source: Yahoo! Finance)
And as of May 30, 2024, Nvidia’s market capitalization amounted to $2.82 trillion.
NVDA dividends are paid quarterly. The next dividend per share is expected to be 0.01 USD; buy before June 11 to get paid. As of this date, the Dividend Yield (TTM)% is 0.01%. (Source: TradingView)
Nvidia continues to break records, and two key milestones to watch are its potential to reach a $3 trillion market cap and possibly surpassing Microsoft to become the world's largest company by market cap.
Benefiting greatly from the AI boom, Nvidia's demand for AI chips remains strong, with little competition capable of matching its offerings.
Conversely, despite concerns over US export restrictions to China, Nvidia is optimistic about its growth, and analysts maintain high price targets, reflecting strong confidence in its future performance.
Really, Nvidia’s growth story shows no signs of slowing down. (Source: Nasdaq)
Recently, Nvidia announced a 10-1 stock split effective June 7, 2024, to make shares more affordable. Shareholders will receive nine additional shares for each share held as of June 6, 2024.
Notably, a stock split makes shares appear cheaper without changing the total investment's value, potentially increasing trading activity. This move reflects Nvidia's confidence in its future growth, with existing shareholders retaining the same overall value, dividends, and voting rights.
Stock splits may be less frequent nowadays, but they still occur. Recent notable examples include Amazon and Alphabet (Google's parent company) in June and July 2022, respectively, and Walmart in February 2024.
Fun fact: this is Nvidia's sixth stock split since its IPO in 1999, with the latest in 2021. (Source: Yahoo! Finance)
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In conclusion, investing in market movers like Nvidia can be a strategic move for those looking to capitalize on the tech industry's growth potential.
With proper research, investment strategy, and access to reliable brokerage platforms like amana, buying Nvidia shares can be a rewarding venture for investors seeking exposure to market movers.
Disclaimer: The information provided in this blog post is for educational purposes only and should not be considered financial advice. Investors should conduct their research and consult with financial professionals before making investment decisions.
