How to buy NVIDIA shares

NVIDIA Corporation is a semiconductors business with stocks listed in the US. NVIDIA shares (NVDA) are listed on the NASDAQ and all prices are listed in US Dollars. Its last market close was US$703.13 – an increase of 8.21% over the previous week. Here's how to invest if you're based in Australia.

How to buy shares in NVIDIA

1. Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
3. Search for NVIDIA. Find the share by name or ticker symbol: NVDA. Research its history to confirm it's a solid investment against your financial goals.
4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until NVIDIA reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
5. Decide on how many to buy. At last close price of US$703.13, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of NVIDIA, depending on your broker.
6. Check in on your investment. Congratulations, you own a part of NVIDIA. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

NVIDIA share price

Use our graph to track the performance of NVDA stocks over time.

NVIDIA shares at a glance

• Key figures

Information last updated 2021-06-10.

52-week range	US$347.7272 - US$712.3367
50-day moving average	US$609.8559
200-day moving average	US$559.548
Target price	US$716.65
PE ratio	82.0721
Dividend yield	US$0.64 (9.17%)
Earnings per share (TTM)	US$8.46

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The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.

Is it a good time to buy NVIDIA stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Technical Analysis of NVIDIA Corporation by TradingView

NVIDIA price performance over time

Historical closes compared with the last close of $703.13

1 week (2021-06-02)	4.77%
1 month (2021-05-13)	28.63%
3 months (2021-03-12)	36.73%
6 months (2020-12-11)	35.08%

1 year (2020-06-12)	96.79%
2 years (2019-06-12)	380.94%
3 years (2018-06-12)	167.78%
5 years (2016-06-10)	1,421.93%

Is NVIDIA under- or over-valued?

Valuing NVIDIA stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of NVIDIA's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

NVIDIA's P/E ratio

NVIDIA's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 82x. In other words, NVIDIA shares trade at around 82x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

NVIDIA's PEG ratio

NVIDIA's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 3.2547. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into NVIDIA's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

NVIDIA's EBITDA

NVIDIA's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$7 billion.

The EBITDA is a measure of a NVIDIA's overall financial performance and is widely used to measure a its profitability.

NVIDIA financials

Revenue TTM	US$19.3 billion
Operating margin TTM	29.61%
Gross profit TTM	US$10.6 billion
Return on assets TTM	13.18%
Return on equity TTM	33.43%
Profit margin	27.66%
Book value	30.135
Market capitalisation	US$432.6 billion

TTM: trailing 12 months

Shorting NVIDIA shares

There are currently 6.3 million NVIDIA shares held short by investors – that's known as NVIDIA's "short interest". This figure is 6.4% down from 6.7 million last month.

There are a few different ways that this level of interest in shorting NVIDIA shares can be evaluated.

NVIDIA's "short interest ratio" (SIR)

NVIDIA's "short interest ratio" (SIR) is the quantity of NVIDIA shares currently shorted divided by the average quantity of NVIDIA shares traded daily (recently around 8.3 million). NVIDIA's SIR currently stands at 0.75. In other words for every 100,000 NVIDIA shares traded daily on the market, roughly 750 shares are currently held short.

However NVIDIA's short interest can also be evaluated against the total number of NVIDIA shares, or, against the total number of tradable NVIDIA shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case NVIDIA's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 NVIDIA shares in existence, roughly 10 shares are currently held short) or 0.0105% of the tradable shares (for every 100,000 tradable NVIDIA shares, roughly 11 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against NVIDIA.

Find out more about how you can short NVIDIA stock.

NVIDIA's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like NVIDIA.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

NVIDIA's total ESG risk score

Total ESG risk: 18.45

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and NVIDIA's overall score of 18.45 (as at 12/31/2018) is excellent – landing it in it in the 12nd percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like NVIDIA is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

NVIDIA's environmental score

Environmental score: 8.83/100

NVIDIA's environmental score of 8.83 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that NVIDIA is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

NVIDIA's social score

Social score: 9.65/100

NVIDIA's social score of 9.65 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that NVIDIA is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

NVIDIA's governance score

Governance score: 11.46/100

NVIDIA's governance score puts it squarely in the 8th percentile of companies rated in the same sector. That could suggest that NVIDIA is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

NVIDIA's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. NVIDIA scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that NVIDIA has, for the most part, managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

NVIDIA Corporation was last rated for ESG on: 2019-01-01.

Total ESG score	18.45
Total ESG percentile	11.56
Environmental score	8.83
Environmental score percentile	8
Social score	9.65
Social score percentile	8
Governance score	11.46
Governance score percentile	8
Level of controversy	2

NVIDIA share dividends

Dividend payout ratio: 5.4% of net profits

Recently NVIDIA has paid out, on average, around 5.4% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.09% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), NVIDIA shareholders could enjoy a 0.09% return on their shares, in the form of dividend payments. In NVIDIA's case, that would currently equate to about $0.64 per share.

While NVIDIA's payout ratio might seem low, this can signify that NVIDIA is investing more in its future growth.

NVIDIA's most recent dividend payout was on 30 June 2021. The latest dividend was paid out to all shareholders who bought their shares by 8 June 2021 (the "ex-dividend date").

Have NVIDIA's shares ever split?

NVIDIA's shares were split on a 3:2 basis on 10 September 2007. So if you had owned 2 shares the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your NVIDIA shares – just the quantity. However, indirectly, the new 33.3% lower share price could have impacted the market appetite for NVIDIA shares which in turn could have impacted NVIDIA's share price.

NVIDIA share price volatility

Over the last 12 months, NVIDIA's shares have ranged in value from as little as US$347.7272 up to US$712.3367. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while NVIDIA's is 1.3668. This would suggest that NVIDIA's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

NVIDIA overview

NVIDIA Corporation operates as a visual computing company worldwide. It operates in two segments, Graphics and Compute & Networking. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise design; GRID software for cloud-based visual and virtual computing; and automotive platforms for infotainment systems. The Compute & Networking segment offers Data Center platforms and systems for AI, HPC, and accelerated computing; Mellanox networking and interconnect solutions; automotive AI Cockpit, autonomous driving development agreements, and autonomous vehicle solutions; and Jetson for robotics and other embedded platforms. The company's products are used in gaming, professional visualization, datacenter, and automotive markets. NVIDIA Corporation sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailers/distributors, Internet and cloud service providers, automotive manufacturers and tier-1 automotive suppliers, mapping companies, start-ups, and other ecosystem participants. NVIDIA Corporation was founded in 1993 and is headquartered in Santa Clara, California.

Frequently asked questions

• What percentage of NVIDIA is owned by insiders or institutions?

  Currently 4.031% of NVIDIA shares are held by insiders and 68.014% by institutions.

• When does the fiscal year end for NVIDIA?

  NVIDIA's fiscal year ends in January.

• Where is NVIDIA based?

  NVIDIA's address is: 2788 San Tomas Expressway, Santa Clara, CA, United States, 95051

• What is NVIDIA's ISIN number?

  NVIDIA's international securities identification number is: US67066G1040

• What is NVIDIA's CUSIP number?

  NVIDIA's Committee on Uniform Securities Identification Procedures number is: 67066G104