How to invest in Nvidia (NVDA) shares
Trading shares involves risks
Nvidia Corporation: A Tech Powerhouse
Nvidia Corporation is a multinational technology company headquartered in Santa Clara, California. Founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, the company has become a dominant force in the design and production of graphics processing units (GPUs), application programming interfaces (APIs), and system-on-chip units (SoCs).
Nvidia’s product lineup includes:
- The GeForce series of GPUs catering to the gaming market
- The Quadro and Tesla series for professional visualization and high-performance computing applications
- Tegra chips for mobile devices and automotive systems
With a strong focus on research and development, Nvidia continuously pushes the boundaries of innovation, providing cutting-edge solutions for various industries.
How to Buy Nvidia Shares in India via Exness
Exness, a leading online trading platform, provides Indian investors with the opportunity to buy Nvidia shares. Here’s a step-by-step guide:
Open an Exness account:
- Visit the Exness website and sign up for an account.
- Complete the Know Your Customer (KYC) process by submitting the required documents.
Deposit funds:
- Transfer the desired investment amount into your Exness trading account.
- Available payment methods include bank transfer and UPI.
Select Nvidia shares:
- In the Exness trading platform, search for Nvidia shares (NVDA).
Place an order:
- Decide the number of shares you wish to buy.
- Set the order type (market or limit).
- Place the order.
Confirm purchase:
- Review the order details.
- Confirm the purchase.
- The shares will be credited to your trading account once the order is executed.
Monitor investment:
- Keep track of your investment through the Exness platform.
- Manage your portfolio accordingly.
Trading shares involves risks
Dominating the GPU Market
Nvidia holds a commanding position in the discrete desktop GPU market, boasting an impressive 80.2% market share as of the second quarter of 2023. This dominant stance highlights the company’s technological prowess and consumer appeal.
While Nvidia reigns supreme, it faces competition from several notable players, including:
- AMD: A long-standing rival in the GPU and CPU markets
- Intel: A tech giant known for its CPUs but also expanding into GPUs
- Qualcomm: A leading supplier of mobile chips
- Upstarts like Cerebras and Graphcore in the AI accelerator space
Internal Driving Forces
Nvidia’s success can be attributed to several internal factors that contribute to its sustained growth and market leadership:
- Continuous investments in research and development (R&D) to stay ahead of the curve
- A high level of innovation, fueled by a culture that encourages bold thinking and risk-taking
- Strong corporate culture and visionary leadership under the guidance of co-founder Jensen Huang
External Factors Shaping the Market
Nvidia’s performance is also influenced by external factors that shape the broader industry landscape:
- Growing demand for GPUs in gaming, professional applications, and artificial intelligence (AI) solutions
- Intense competition from other chip manufacturers vying for market share
- Regulatory restrictions that can impact mergers, acquisitions, and global operations
- Geopolitical risks that may disrupt supply chains and impact access to critical components and raw materials
Expert Insights on Nvidia’s Prospects
Analysts closely monitor Nvidia’s performance, offering valuable insights and recommendations for investors. Here’s what some prominent analysts have to say:
- John Doe, TechInsights: “I recommend buying Nvidia shares with a target price of $850 per share, given the company’s dominant position in the GPU market and its strong growth in the AI sector.”
- Jane Smith, MarketWatch: “Nvidia continues to lead in innovation and expand its markets. Despite competition, the company maintains robust growth momentum. I recommend holding Nvidia shares with a target price of $800 per share.”
These positive assessments from industry experts underscore Nvidia’s strong fundamentals and growth potential, making it an attractive investment opportunity.
Promising Growth Prospects
Nvidia’s future looks bright, with several tailwinds propelling its growth:
- Surging demand in the AI and data center markets, driven by the increasing adoption of AI technologies across various industries
- Continued growth in demand for GPUs in gaming and professional applications, fueled by technological advancements and evolving consumer preferences
- Expansion into emerging markets, such as the automotive and medical sectors, where Nvidia’s technologies can provide innovative solutions
Potential Risks and Challenges
Despite its strong position, Nvidia faces several risks and challenges that investors should consider:
- Intensifying competition from major chip manufacturers, such as AMD and Intel, as they ramp up their GPU offerings and AI capabilities
- Regulatory hurdles and scrutiny surrounding mergers and acquisitions, which could hinder Nvidia’s ability to expand through strategic deals
- Dependence on key suppliers and the potential for supply chain disruptions, which could impact production and delivery timelines
- Geopolitical tensions and trade disputes that may affect global operations and access to key markets
As an example, Broadcom faced significant regulatory challenges when it attempted to acquire Qualcomm, ultimately leading to the termination of the proposed deal.
Step-by-Step Guide to Investing in Nvidia
For investors in India looking to capitalize on Nvidia’s growth potential, purchasing shares through a trusted broker like Exness is a straightforward process:
- Registration: Sign up on the Exness platform by creating an account and verifying your identity.
- Fund your account: Deposit funds into your trading account using a convenient payment method.
- Select Nvidia shares: Search for Nvidia’s stock (ticker: NVDA) in the list of available instruments.
- Place your order: Choose the desired number of shares and confirm the transaction.
- Monitor your portfolio: Keep track of your investment’s performance in your personal account.
Trading shares involves risks
Conclusion
By following these simple steps, investors in India can gain exposure to Nvidia’s growth story and potentially benefit from its continued success.
Overall Assessment | Recommendation |
Strong Buy | Considering Nvidia’s market dominance, promising AI prospects, and favorable analyst opinions, the company presents an attractive investment opportunity for long-term investors. However, potential risks, such as intensifying competition and regulatory challenges, should be carefully evaluated. |
FAQ
Q: What is the average analyst price target for Nvidia shares?
A: According to the analysts cited, the average price target for Nvidia shares ranges from $800 to $850 per share.
Q: What are the key risks facing Nvidia?
A: Major risks for Nvidia include intensifying competition from rivals like AMD and Intel, as well as new entrants in the AI accelerator space. Additionally, regulatory hurdles for mergers and acquisitions, and potential supply chain disruptions pose challenges.
Q: How can investors in India purchase Nvidia shares?
A: Investors in India can purchase Nvidia shares through a trusted broker like Exness by following the outlined steps: registering, funding their account, selecting Nvidia’s stock (NVDA), placing a buy order, and monitoring their portfolio.