NVIDIA (NVDA)

The start of the year was very weak for US tech stocks, including graphics chip maker NVIDIA, which fell 7.4% in the first trading week of January. This was due to increased expectations of a faster-than-expected tightening of monetary policy in the US after the publication of the hawkish minutes of the FED’s December meeting. Talks about raising rates in America traditionally cause increased volatility in high-tech stocks, and this time was no exception.

NVDA stock price today

As of today, the NVDA stock price chart shows the figure of $175. 

NVIDIA shares are currently trading below their all-time highs. On the 4-hour chart, you can see that the price of the asset has overcome the key resistance level and is above it. In such a situation, it is quite difficult to make an unambiguous forecast for Nvidia shares. It can be assumed that if the resistance line becomes support, then a rebound from it will open the way for further growth for quotes.

How did quarterly revenue and earnings impact the current stock price of NVDA?

NVIDIA, the world’s largest developer of graphics accelerators and processors, presented a rather strong report for the first quarter of the fiscal year 2022, which ended on May 1. Revenue increased 46.4% YoY to a record $8.29 billion and beat the consensus estimate of $8.1 billion Gaming GPU sales up 31.2% to $3.62 billion on continued strong demand for graphics accelerators of the GeForce RTX 30 family. 

At the same time, sales in the data center solutions segment soared 83.1% to $3.75 billion amid strong demand from hyper-scale cloud service providers that use the company’s processors for their data centers. 

In addition, NVIDIA noted a significant increase in demand for professional graphics adapters, as a result of which the company’s corresponding business recorded a jump in sales by 67.2% to $622 million. At the same time, in the automotive solutions segment, revenue decreased by 10.4% to $138 million, reflecting ongoing challenges in the sector.

NVIDIA’s F1 adjusted EBITDA rose 51.1% to $4.29 billion, while the EBITDA margin improved 1.6 percentage points to 51.7%. Adjusted earnings per share rose 49.5% to $1.36 and 7 cents ahead of analysts’ average estimate. This is good news for the NVDA pre-market stock price.

Revenue results

NVIDIA’s balance sheet remains solid. The company ended the 1st financial quarter with $20.38 billion of cash and investments in its accounts, with long-term debt of $10.95 billion.

During the reporting period, the company generated $1.73 billion in operating cash flow, directed $361 million in investments, and returned $2.100 billion to shareholders through share repurchases and dividends. At the same time, the NVIDIA Board of Directors approved a new $15 billion buyback program (3.5% capitalization), which is scheduled to be completed in December 2023 calendar year.

NVDA stock price prediction for 2025

To date, analysts have the next data:

• NVDA stock price target of $264.52.

• The 200-day moving average is the resistance level ($242.12).

• 50-day moving average – resistance level ($207.43).

Specialists expect strong demand for the company’s gaming GPUs to continue and look forward to further strengthening its position in areas such as artificial intelligence, deep learning, supercomputing, and data centers. 

NVDA’s after-hours stock price has fallen markedly this year on the back of a general sell-off in the technology sector.

Lockdown to help NVDA stock price to strengthen

The NVDA stock price today is the outcome of the worldwide lockdown. The company has been the beneficiary of the profound changes that the coronavirus pandemic and the response to it have brought to the lives of consumers and businesses. 

After the introduction of hard lockdowns in most countries, the demand for home entertainment such as computer games increased dramatically, which led to an increase in sales of graphics accelerators. In addition, due to the massive transition of companies to remote work, the demand for components for data centers has increased significantly.

NVDA stock price chart history

The Nvidia stock chart allows you to evaluate the effectiveness of certain factors on the price of an asset. It shows that Nvidia shares experienced both ups and downs. 

1. The first sharp decline in quotations occurred in 2002, when, in the final phase of the “collapse of the dot-coms”, the price of Nvidia’s shares fell from $24.22 to $2.40. 

2. The second major drop in Nvidia stock was triggered by the economic crisis of 2007-2008. The shares of the corporation then fell in price from $39.67 to $5.75.

Over the past six years, Nvidia’s share price has risen more than 17 times. If in August 2015 the shares of the corporation were worth $19.85 on the stock exchange, then in November 2021 the NVDA pre-market stock price reached $350. Also you can see Amd stock price chart and QQQ stock price today.

Invest at maximum: Nvidia stock review

The American company Nvidia was founded in 1993. Compared to such giants as AMD and Intel, it is a relatively young player on the market. Its specialization can explain this. In contrast to more gray-haired competitors (making processors) Nvidia activities are focused exclusively on graphics processors and systems on chips (Soc).

Nvidia stock analyst — miners vs video card market: when will prices go down?

Over the years the company has undergone many changes. It is interesting that originally it didn’t even have its own production facilities. Nvidia was solely engaged in design, marketing, and promotion. The final product was handed over for manufacturing to a third-party company.

In the early 2000s, many players left the market for the production of graphics processors. There began a rivalry between the two giants: Nvidia and ATI. 

Intel at the time was inferior to both companies regarding GPUs. In 2006, an even bigger player — AMD absorbed ATI. However, Intel soon overtook its competitors, nominally. To this day, Intel is the leader in the manufacture of graphics processors with a market share of over 60%. But everything is not so simple. The fact is that Intel does not produce discrete GPUs (graphics cards in short). The IT giant specializes in integrated graphics (i.e., just as part of processors).

But in the field of discrete graphics cards (which are needed for computer games at maximum quality settings) leader — Nvidia. So much so that it has a mind-boggling market share of over 70%.

Nvidia stocks

Nvidia stock price ticker is Nasdaq: NVDA. Originally the stock was sold quite cheaply at 44 per share. But over the next 16 years, the rate increased in price by more than 13 times and reached $6. Since 2015, Nvidia stock has seen a real bullish rally. Within five years, the price soared nearly 60 times. On Nov. 22, 2021, a new all-time high for Nvidia stock was set at $346.47 apiece. Since the beginning of trading in 1999, the stock has risen more than 787 times.

At this point in the NVDA stock price today, a correction has begun. Nvidia stocks are down more than 18% from their November highs. And is now around $290. This is not surprising, since the stock has been growing for more than a year without any significant pullbacks. Most likely, soon, the correction will continue, say Fintalk experts.

Nvidia stock — how to buy? The total number of securities is 2.5 billion pieces. The main holders of Nvidia shares are large investment companies: The Vanguard Group — 7.37%, Fidelity Investments Inc. — 6.65%, BlackRock — 4.45%. Within half a year, Nvidia’s quotes rose by more than 56%. Now we see the decrease in value during the correction, which can be a good time to buy Nvidia stocks, while technical and fundamental analysis show that these investments can be quite promising. You can also use TSLA stock for investments.

Nvidia stocks dividend

If you want to live solely on the Nvidia stocks dividend, this is clearly not your option. Yes, of course, Nvidia pays more than some AMD (they do not pay anything there). And payments are quite stable, four times a year. But the dividend yield (the ratio of the dividend to the current market value of the stock) is extremely meager: 0.05%.

The dividend yield of this company is one of the lowest. It is lower than the average for the entire semiconductor industry in the United States by more than 1.5%, and it is more than 4% lower than the average for the U.S. market. 

Nvidia stocks chart — forecast 

Fundamentally, Nvidia looks quite attractive. All financial indicators are growing. Demand for processors and gas pedals is frantic. Growth in the segment of gaming GPU sales for the third quarter of 2021 was 41.8%. Also, the company expects strong financial results for the fourth quarter.

Further development of Nvidia’s business should contribute to developing computer games graphics, as well as the increasing use of high-resolution screens. And do not forget about miners. GPUs are actively used in mining cryptocurrencies based on the principle of PoW (proof-of-work).

In addition to graphics cards, the company is going to develop in other directions: artificial intelligence, databases, and the creation of its own metaworld. Its CEO, Jensen Huang recently announced that the company is currently developing a digital twin of Planet Earth. The company called it E-2 (short for Earth-2). This model will be aimed at modeling and predicting climate changes on the planet.

Nvidia stock hold or sell: Nvidia stock long term forecast

Nvidia stock all time high? So far, Nvidia stock long term forecast paints a cloudless future. Demand for video cards is ridiculous (as is Nvidia stock prices for them, by the way). The growing popularity of computer games, and the requirements for game graphics is a positive thing for Nvidia. The company is also growing in other modern IT segments. With all that said, the share price is likely to drop a bit more soon, which could be a good time for a bargain purchase.