Ask the right questions to make a smart investment.
NVIDIA is an American technology company that’s primarily known for making computer parts — specifically, graphics-processing units (GPUs). It also produces tablets, works in cloud technology and focuses on artificial intelligence.
As one of the most well-known GPU manufacturers in the country, it’s a popular choice for investors. But the company’s popularity can’t fully insulate them from risk.
NVIDIA’s recent stock price performance
Before investing in a company like NVIDIA, review its past stock prices, recent news headlines and something called the moving average convergence/divergence — or MACD. MACD is a trading indicator that uncovers the strength, momentum and duration of a trend. Remember, past performance is no guarantee of future results.
NVIDIA’s technical performance
Technical analysis is the mathematical study of a stock’s price based on its recent trends. You have many more ways than the MACD to analyze market trends. Here’s what several key technical indicators are saying about NVIDIA’s current stock trend, according to charting service TradingView.
NVIDIA’s financial performance
Explore the table below to see how NVIDIA has performed financially over the last two years.
|NVIDIA financial reporting figures||Revenue||Operating income||Net income||Total assets||Total equity||Number of employees|
|2016||$9.714 billion||$3.210 billion||$3.047 billion||$11.241 billion||$7.471 billion||11,528|
|2017||$6.91 billion||$4.28 billion||$1.67 billion||$9.84 billion||$5.76 billion||10,000|
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How to stay up to date with NVIDIA stock
When buying or selling stocks in a company, pay attention to its current affairs by monitoring elements like:
- Financial reporting. Knowing when NVIDIA releases its financial reports will let you know how the company is performing and will have a big impact on the stock price. NVIDIA’s fiscal year ends in late January and results are usually announced in February.
- Company news. Keep an eye on the news. Is NVIDIA releasing a new product? Is it hiring and/or firing staff? These events will have an impact on its share price.
- Wider news. Be aware of external events and news that can affect NVIDIA’s share price — for instance, new products being released by competitors or new federal regulations that could impact the company.
- Company dividends. NVIDIA pays back some of its profits as dividends to its shareholders. Dividends can reveal the success of a brand.
- Shareholder meetings. Often held annually, these meetings invite large shareholders to attend and vote on matters relating to the company, pushing the direction of the company. Highlights will often be made available online shortly after the event.
Things to consider
Before investing in any company, know the answers to key questions like:
- What does the company do? Can you explain what the company does in a few sentences? If you can’t, do some research before investing.
- Is it profitable? If you’re not sure whether a company is profitable, it could be a red flag. Read NVIDIA’s quarterly or annual earnings reports and take a look at the figures for yourself.
- Who are the main competitors? Know if the company is a market leader, a newcomer or a fast-growing disrupter. If the company you’re considering operates globally, keep an eye on foreign competition, too.
- Who runs the company? It’s easy to track down who runs a company, and any decent company lists its senior managers. Knowing the leaders can tell you something about the company’s stability and management style.
- Is the company’s position sustainable? If you’re looking for a long-term investment, evaluate the likelihood of the company sticking around. If you’re looking for a short-term gain, this is less important.
- Is there room for future growth? Look for the company’s medium- to long-term growth to determine whether it’s reached its maximum size or has room to grow.
Over the last several years, NVIDIA has been starting to diversify more and is becoming known for its work in artificial intelligence, making some investors think now is the best time to buy stock.
However, no investment is a guaranteed moneymaker. Decide if it’s worth the risk and which brokerage or investing platform to trade with.
Frequently asked questions
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