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How to buy NVIDIA shares
Own NVIDIA shares in just a few minutes.
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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.
How to buy shares in NVIDIA
- 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.
- 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.
- 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.
- 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.
- Decide on how many to buy. 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.
- 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.
What's in this guide?
- NVIDIA key stats
- Compare share trading platforms
- Is NVIDIA stock a buy or sell?
- NVIDIA performance over time
- Can I short NVIDIA shares?
- Is NVIDIA suitable for ethical investing?
- Are NVIDIA shares over-valued?
- NVIDIA's financials
- How volatile are NVIDIA shares?
- Does NVIDIA pay a dividend?
- Have NVIDIA shares ever split?
- Other common questions
NVIDIA share price
Use our graph to track the performance of NVDA stocks over time.NVIDIA shares at a glance
Information last updated 2020-09-25.
| 52-week range | USD$170.13 - USD$559.75 |
|---|---|
| 50-day moving average | USD$494.2372 |
| 200-day moving average | USD$370.9713 |
| Target price | USD$552.46 |
| PE ratio | 88.9817 |
| Dividend yield | USD$0.64 (0.13%) |
| Earnings per share (TTM) | USD$5.444 |
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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.
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 89x. In other words, NVIDIA shares trade at around 89x 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 3.6525. 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$4.4 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$13.1 billion |
|---|---|
| Operating margin TTM | 28.56% |
| Gross profit TTM | US$6.8 billion |
| Return on assets TTM | 11.67% |
| Return on equity TTM | 27.94% |
| Profit margin | 25.93% |
| Book value | 22.551 |
| Market capitalisation | US$305.1 billion |
TTM: trailing 12 months
Shorting NVIDIA shares
There are currently 5.4 million NVIDIA shares held short by investors – that's known as NVIDIA's "short interest". This figure is 2.1% down from 5.5 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 11.5 million). NVIDIA's SIR currently stands at 0.47. In other words for every 100,000 NVIDIA shares traded daily on the market, roughly 470 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 0.0092% of the tradable shares (for every 100,000 tradable NVIDIA shares, roughly 9 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: 19.92
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and NVIDIA's overall score of 19.92 (as at 07/31/2020) is excellent – landing it in it in the 10th 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: 12.44/100
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: 2020-08-01.
| Total ESG score | 19.92 |
|---|---|
| Total ESG percentile | 10.02 |
| Environmental score | 8.83 |
| Environmental score percentile | 8 |
| Social score | 9.65 |
| Social score percentile | 8 |
| Governance score | 12.44 |
| Governance score percentile | 8 |
| Level of controversy | 2 |
NVIDIA share dividends
Dividend payout ratio: 11.74% of net profits
Recently NVIDIA has paid out, on average, around 11.74% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.13% 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 0.13% 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 23 September 2020. The latest dividend was paid out to all shareholders who bought their shares by 31 August 2020 (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$170.13 up to US$559.75. 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 1.5256. 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, GPU and Tegra Processor. The GPU segment offers processors, which include GeForce for PC gaming and mainstream PCs; GeForce NOW for cloud-based gaming; Quadro for design professionals working in computer-aided design, video editing, special effects, and other creative applications; Tesla for artificial intelligence (AI) utilizing deep learning, accelerated computing, and general purpose computing; GRID, which provides power of NVIDIA graphics through the cloud and datacenters; DGX for AI scientists, researchers, and developers; and EGX for accelerated AI computing at the edge. The Tegra Processor segment provides processors comprising SHIELD devices and services designed to harness the power of mobile-cloud to revolutionize home entertainment, AI, and gaming; AGX, a power-efficient AI computing platform for intelligent edge devices; DRIVE AGX for self-driving vehicles; Clara AGX for medical instruments; and Jetson AGX for robotics and other embedded use. 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.
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