Despite a low yield, Nvidia stock provides a long-term strategic investment in the electronics sector with the potential for long-term capital gain.
How much can you make with Nvidia stock?
Get up-to-date and precise information on Nvidia stock with its current price, dividend yield, analysis and our opinion.
This page is for information purposes only and does not constitute investment advice. Remember that investing can be risky.
Want to buy shares in Nvidia: Our key take-aways
- Stock exchange: Nasdaq
- Stock market index: Nasdaq 100
- Dividend 2021: $0.16
- Dividend forecast 2022: $0.16
- Performance over 1 year: +72.44%
Should I buy Nvidia stock?
Nvidia is an interesting growth stock if you are considering investing in new technologies.
Indeed, even if the company pays a low dividend with a yield of only 0.07%, its long-term performance makes it a stock that attracts many investors looking for growth.
Indeed, this stock has increased by more than 6 000% in 10 years and by 72% over the last 12 months.
It is therefore interesting to hold it in your portfolio if you are pursuing a capital gain over the long-term.
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How can I buy shares in Nvidia ?
To buy Nvidia on the stock market:
- Find an online broker offering stock investments.
- Open your trading account by filling out a simple form.
- Deposit funds into your account.
- Search for the stock
- Place a buy order to add Nvidia to your stock portfolio.
How much are Nvidia shares?
See price chart below to follow Nvidia stock price in real time.
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Why Nvidia shares could go up:
Several current elements of the Nvidia Group's situation and business environment are in favour of a rise in this stock's price, including:
- An innovative company: Over time, Nvidia has successfully transformed itself to become a global leader in core technologies such as artificial intelligence, virtual reality and advanced robotics.
- Strategic Partnerships and Acquisitions: Nvidia regularly makes strategic acquisitions to accelerate product expansion and establishes strong partnerships to enhance growth.
- Strong and Diverse Portfolio: Nvidia's product portfolio is diversified with graphics cards, wireless communication, PC processors and automotive hardware. This enables Nvidia to meet a wide range of customer needs.
- Strong financial performance: Nvidia also shows positive financial results with an increase in revenues over the last few years, especially in the gaming and data center segments. Its return on investment is also particularly high.
- Strong brand image: the group also enjoys strong recognition by various industry players and its brand is considered a trusted brand.
- Skilled Workforce: Nvidia also benefits from a skilled and diverse workforce with qualified and accredited professionals. It is also among the top employers in its industry.
Why Nvidia shares could go down:
Of course, there are other more negative elements in favour of a decline in Nvidia's stock, with the following points to consider:
- Low margins: despite strong financial performance, Nvidia shows financial ratios involving still low margins, which may weigh on its cash flow.
- Dependence on certain products: While Nvidia's product portfolio is diversified, the company is still heavily dependent on certain materials that generate a very large portion of profits. This makes the company more vulnerable.
- High operating costs: Nvidia still leases many of its properties, which results in higher operating costs, especially in certain strategic areas where rents are rising.
- High competition: The group also faces strong direct and indirect competition across all of its segments, which tends to drive down selling prices and thus reduce profit margins.
- Low yield: Although Nvidia has been paying a dividend to its shareholders for many years, its current yield is very low and only 0.07%.
Can I buy Nvidia stock online?
Yes! You can buy Nvidia shares online. For many buys this is the best way to do it. Here's why:
- The commissions are lower
- You can choose your own investments
- You benefit from analysis and decision support tools
- You can invest in stocks directly or through derivatives like ETFs.
How can I sell my Nvidia shares?
In order to sell Nvidia stock with a registered investment vehicle, you must have some in your portfolio.
However, if you want to short this stock, you can do so through a margin account.
It is also possible to bet on the decline of this asset by using derivatives such as options or CFDs.
What investment vehicles in Canada can hold Nvidia stock?
Nvidia shares can be placed in several different savings vehicles including"
- RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
- TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
- Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
- Cash accounts: This account allows you to trade stocks on North American markets only.
It is of course possible to add Nvidia shares to your stock market portfolio by simply placing a buy order from your online brokerage platfor.
However, if you want to implement a more effective portfolio diversification strategy, you can opt for a mutual fund or ETF that will include other stocks.
Nvidia share price history over 10 years:
|Période||Evolution||Cours le plus bas||Cours le plus haut|
Nvidia dividends and payment dates
In 2021, the Nvidia Group paid a dividend of $0.16 to its shareholders.
Nvidia Corporation has paid a dividend for its shares since 2021 without any interruption. This dividend is a quarterly dividend and is therefore detached four times a year, in March, June, August and December.
The current annualized dividend yield for Nvidia stock is 0.07%.
For 2022, the dividend amount announced by Nvidia remains unchanged at $0.16 per share.
|Dividend: payout 2021||Payout 1||Payout 2||Payout 3||Payout 4|
|Dividend per stock||$0.04 per share||$0.04 per share||$0.04 per share||$0.04 per share|
|Dividend: payout 2022||Payout 1||Payout 2||Payout 3||Payout 4|
|Dividend per stock||$0.04 per share||Pending||Pending||Pending|
What is the dividend yield for Nvidia over the last 10 years?
The yield on Nvidia shares is obtained by dividing the annual dividend by the annual average price.
A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.
Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year
The 10-year average return = Sum of annual returns ÷ 10
What analysts are saying about Nvidia stock:
A critical analysis of Nvidia stock:
Fundamental analysis of Nvidia stock shows strong long-term upside signals with the following indicators:
- Strong growth: the company's growth represents a significant advantage for the company with an anticipated 73% growth over three years, i.e. by 2025.
- High margins: the company's margins also show strong profitability and the financial situation offers an interesting investment capacity.
- Increased EPS expectations: In recent months, analysts working on the company have raised their earnings per share expectations several times.
- Buy recommendations: A large majority of analysts covering this stock rate it Buy or Overweight.
- High price target: The average price target set by analysts is relatively high compared to Nvidia's current share price, reflecting strong growth potential.
- Above-expectations releases: Nvidia Group generally reports earnings above analysts' expectations with a positive surprise ratio.
- High earnings multiples: With an expected P/E of 54.46 for 2022 and 40.52 for 2023, the company is trading with high earnings multiples, which makes it highly valued.
- Low dividend: Nvidia's dividend yield is very low, which makes the stock less attractive.
- Diverging opinions: Finally, the price targets published by analysts show significant divergences, which implies that the company and its activities are difficult to value.
A technical analysis of Nvidia stock:
The medium to long-term technical analysis of Nvidia stock also shows positive signals with the following chart indicators:
- The RSI is currently trading near 60.946, which sends a strong buy signal on this stock.
- The short and medium-term stochastics are also sending a buy signal but the long-term stochastic is sending an oversold signal.
- The MACD is currently at 46.99 and is also sending a buy signal.
- The MA20, MA50, MA100 and MA200 simple and exponential moving averages as well as the MA10 exponential moving average are sending a buy signal. The other moving averages are sending a sell signal.
- The next technical supports are located at 223.08 and 173.61 and the next resistances are located at 306.04 and 339.23.
Who is Nvidia?
Nvidia Corporation is an American company that is a world leader in the design, development and sale of programmable graphics processors. It also develops associated software.
The group's sales by product type are broken down as follows:
- Computer processors with 86.7% of sales: with GeForce, Personal Cinema or Quadro branded graphics and multimedia processors, nForce storage and security processors for computers, servers and workstations.
- Mobile processors with 13.3% of revenue: with processors that integrate image capture, video playback and gaming capabilities for cell phones, handheld game consoles and others under the GeForce brand.
By business segment, Nvidia Group's revenue is distributed as follows:
- Games with 50.5% of sales
- Data storage with 27.3% of sales
- Professional visualization with 11.1% of sales
- Automotive with 6.4% of sales
- Other sectors with 4.7% of sales
Finally, the geographical distribution of the group's revenues is as follows
- The United States with 8.1% of sales
- Taiwan with 27.7% of sales
- China with 25% of sales
- Asia Pacific with 24.6% of sales
- Europe with 9.1% of sales
- Rest of the world with 5.5% of sales
The Nvidia Group currently employs 22 473 people.
Who are Nvidia’s competitors?
The Nvidia group has of course many competitors in its sector of activity, the main ones being
- AMD: Advances Micro Devices or AMD is an American manufacturer of semiconductors, microprocessors, graphics cards based in California and the most important competitor of Nvidia.
- Intel Corporation: This other American company is one of the world's largest semiconductor manufacturers in terms of revenue. It produces microprocessors, motherboards, flash memory and graphics processors.
- Samsung Electronics: This company specializes in the manufacture of electronic products and is part of the Samsung group.
- Micron Technology: This American computer company is also a local competitor of Nvidia in North America.
- Broadcomm Corporation: This American company specializes in the electronics industry and develops semiconductors that are used in various telecommunications equipment.
- Qualcomm: This American company is active in the field of mobile technology and specializes in the implementation of telecommunications solutions.
- Texas Instruments: This American electronics company offers passive electronic components and semiconductors. It markets microcontrollers, processors, sensors, wireless connectivity and scientific calculators.
- Toshiba Corporation: This Japanese company specializes in electronic and computer equipment and components and is one of the world's largest semiconductor manufacturers.
Who are Nvidia’s partners?
Of course, the Nvidia group can also count on the support of some strategic allies to accelerate its growth. Here is a quick overview of its major partners:
- Jaguar Land Rover: the two companies have signed a partnership to integrate the Nvidia Drive Hyperion 8 platform into all of the brand's electric vehicles starting in 2025.
- Milestone Systems: Another partnership has been established with this open platform IP video management software vendor to enable partners to accelerate the adoption of artificial intelligence in IP video technology.
- VMWare: This group has also partnered with VMWare to integrate Nvidia's AI applications and provide unified management of its applications, security and data processing unit gas pedals.
- Mercedes Benz: The company is also once again focusing on the automotive sector to boost sales by partnering with Mercedes Benz to ensure that the company's vehicles are equipped with new hardware and software architecture from Nvidia by 2024.
- Volvo: Finally, the group has also set up a partnership with the car manufacturer Volvo in the development of autonomous cars.