Nvidia’s stock has experienced a significant surge, driven by strong performance in its gaming segment, which grew by 46%, and an 88% increase in the data center segment during the first quarter of 2024.

 

Although the stock underwent a correction of 11.4% from its peak, resulting in a nearly $500 billion drop in market value, long-term growth prospects remain positive in the eyes of investors.

 

On the other hand, Nvidia continues to lead in Artificial Intelligence (AI) technology. Investor optimism about the company’s long-term potential remains high, thanks to Nvidia’s dominance in AI development, which is becoming increasingly important across various industries.

 

What is Nvidia Stock Investment?

NVIDIA stock represents ownership in NVIDIA Corporation, a major technology company based in the United States.

 

By purchasing these shares, you acquire a small portion of ownership in the company, which also grants you rights to a share of the company’s profits and assets, depending on the number of shares you hold.

 

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Getting to Know Nvidia Corporation

Here is a complete profile of Nvidia, covering its brief history, main products, and stock performance over the past 3 years.

 

A Brief History of Nvidia

Nvidia is a technology company that was founded in the 1990s and officially went public on January 22, 1999, during the peak of the Dotcom bubble, with shares priced at $12 USD.

 

Recognized as a major player in the tech sector, Nvidia’s stock has surged sharply since early 2024, driven by advancements in artificial intelligence development.

 

The company is known for designing graphics processing units (GPUs) for the gaming and professional markets, as well as system-on-chip (SoC) technology for mobile computing and the automotive industry.

 

Nvidia’s Main Products

NVIDIA operates in several key areas that highlight its technological strengths. In the gaming sector, NVIDIA is a market leader in GPUs, with its GeForce product line being extremely popular among gamers.

 

In the data center field, NVIDIA’s GPUs are used for high-speed computing, big data analysis, and artificial intelligence (AI) applications. In professional visualization, NVIDIA’s technology supports graphic design, 3D rendering, and advanced simulations.

 

Additionally, NVIDIA is innovating in the automotive sector by developing technology for autonomous vehicles that can perceive and respond to their environment using AI.

 

Nvidia Stock Development Over the Last 3 Years

On June 2, 2022, Wall Street closed higher, driven by a 6.9% increase in Nvidia’s stock. However, on July 29, 2022, NVDA shares dipped slightly by 0.3% to around $626.25, although it remained ranked among the top 30 stocks listed on IBD.

 

Nvidia’s revenue from the data center segment surged in 2022, reaching $15 billion, a significant increase from $10.6 billion in 2021 and $6.7 billion in 2020. According to Insider reports, Nvidia’s stock had risen by 165% by May 25, 2023, since the beginning of that year.

 

However, on June 24, 2024, Nvidia (NVDA) experienced a decline of 6.6%, resulting in the company’s market capitalization falling below $3 trillion.

 

Although market corrections are a common phenomenon, Nvidia’s stock is expected to recover on Tuesday with an increase of over 3% in pre-market trading.

 

Since the beginning of 2024, NVDA shares have recorded an increase of more than 138%, making it the best-performing stock in the Nasdaq 100 index.

 

Factors Influencing Nvidia’s Stock Price

Here are the key factors that impact Nvidia’s stock price, including:

 

Nvidia’s Financial Performance

Nvidia’s financial performance directly impacts its stock price. Strong earnings reports and consistent profit growth tend to drive stock prices higher. Therefore, regularly monitoring Nvidia’s financial statements is crucial.

 

Technology Trends and Innovation

Advances in technology, particularly in the gaming, AI, and autonomous vehicle sectors, can influence the demand for Nvidia’s products. Innovation and the launch of new products often serve as drivers for the stock price.

 

Competition with AMD and Intel

Competition from other companies, such as AMD and Intel, also affects Nvidia’s stock price. The company’s ability to maintain its competitive edge will positively impact its stock value.

 

Macroeconomic Factors

Macroeconomic factors such as interest rates, inflation, and global market conditions also influence stock prices. Investors should pay attention to the overall economic situation to understand the associated risks and opportunities.

 

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Future Prospects for Nvidia Stock

Here is a detailed explanation of Nvidia’s future stock prospects that you should know:

 

High Demand for GPUs and AI

The demand for graphics processing units (GPUs) across various sectors, such as gaming, data centers, and AI, is expected to continue rising. With its innovative products and market leadership, Nvidia is well-positioned to capitalize on these trends.

 

Expansion into the Automotive Market

Nvidia’s expansion into the automotive sector and its development of autonomous vehicle technology offer additional growth opportunities. Nvidia’s DRIVE technology has the potential to be a significant driver of future growth.

 

Continuous Innovation

Nvidia consistently invests in research and development to create new technologies. This ongoing innovation will help the company maintain its market leadership and continue attracting investor interest.

 

Benefits of Investing in Nvidia Stock

For investors looking to invest in Nvidia, here are some key advantages to consider:

 

Resilience During Economic Crises

Nvidia has shown remarkable resilience by enduring and recovering from various economic crises, including the dotcom bubble in 2000 and the U.S. mortgage crisis in 2009. Since 2016, NVDA’s stock price has steadily increased, demonstrating the company’s strength in facing economic challenges.

Strong Product Portfolio

Nvidia boasts a strong product portfolio, including consumer GPUs under the GeForce brand, visual computing GPUs under the RTX brand, and multi-purpose GPUs under the Tesla brand for high-quality graphics applications in professional and scientific sectors.

 

Track Record of Financial Success

Nvidia also maintains healthy financials, with positive cash flow and a strong balance sheet. The company’s non-GAAP gross margins remained above 60% in 2021. Its diverse product range, serving multiple segments of the technology industry, has driven strong revenue and profitability.

 

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Why Nvidia Stock is Attractive for Investment

Nvidia stock is attractive for investment due to its competitive advantage in the GPU market, where its GeForce products dominate among gamers and professionals alike. The company continues to innovate in cutting-edge technologies, particularly in artificial intelligence (AI) and graphic processing, maintaining its position as an industry leader.

 

Additionally, Nvidia’s bright growth prospects in the AI sector and the automotive segment—such as its Nvidia DRIVE autonomous vehicle technology—further enhance its appeal to investors.

 

As an added note, INDODAX will soon introduce new investment options by offering U.S. stock investments. Besides investing in cryptocurrencies, you will be able to manage over 50 U.S. stocks through a single INDODAX account, all within one app.

 

FAQ: Nvidia Stock

What is Nvidia Stock?
Nvidia stock refers to ownership in the leading technology company Nvidia Corporation, based in the U.S.

 

Why is Nvidia Stock Attractive for Investment?
Nvidia is a leader in GPU, AI, and autonomous vehicles, offering strong long-term growth potential.

 

How Has Nvidia Stock Performed in the Last 3 Years?
Nvidia stock has risen significantly since 2022, despite a market correction in 2024.

 

What Factors Influence Nvidia Stock Price?
Financial performance, technology trends, competition, and macroeconomic factors all play important roles.

 

What is the Future Outlook for Nvidia Stock?
High demand for GPUs, innovations in AI, and expansion into the automotive market provide a positive outlook.