Is NVIDIA stock a buy right now?
As of June 2024, NVIDIA (NVDA) shares are trading near $1,180, with recent average daily trading volume exceeding 42 million shares, reflecting persistent market enthusiasm. The stock has showcased resilience in the wake of robust Q1 earnings that significantly outpaced analysts’ expectations, largely propelled by unprecedented demand for NVIDIA’s advanced AI chips and data-center solutions. Industry attention has recently focused on NVIDIA’s launch of its next-generation Blackwell GPU architecture, a move welcomed by both investors and strategic partners, given the paradigm shift it signals for AI and cloud computing applications. Constructive sentiment continues to prevail across Wall Street, with NVIDIA broadly perceived as a bellwether in the rapidly expanding AI ecosystem and semiconductor sector. With data-center and AI platform revenues climbing sharply, the company remains well positioned to benefit from secular trends in machine learning, high-performance computing, and enterprise cloud adoption. In this context, the consensus price target from more than 34 national and international banks stands at $1,535, indicating a broad-based confidence in both the stock’s trajectory and NVIDIA’s enduring sector leadership. The current environment may encourage investors to re-evaluate NVIDIA’s long-term growth potential.
- Market leader in AI and accelerated computing chips with expanding global partnerships.
- Consistently strong quarterly earnings, driven by surging data-center and AI revenues.
- Innovative product pipeline, highlighted by the new Blackwell architecture launch.
- Extensive presence in cloud, gaming, automotive, and enterprise market verticals.
- Solid balance sheet and high free cash flow enabling strategic investments in R&D.
- Exposure to semiconductor supply chain cycles may contribute to short-term volatility.
- Premium valuation leaves less room for error in future growth execution.
- What is NVIDIA?
- How much is NVIDIA stock?
- Our full analysis on NVIDIA </b>stock
- How to buy NVIDIA stock in United States?
- Our 7 tips for buying NVIDIA stock
- The latest news about NVIDIA
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring NVIDIA’s market performance for more than three years. Each month, hundreds of thousands of users in the United States rely on us to interpret market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In line with our ethical charter, we have never received, and will never accept, compensation from NVIDIA.
What is NVIDIA?
Indicator | Value | Analysis |
---|---|---|
🏳️ Nationality | United States | U.S.-based, leading global designer of graphics and AI chips. |
💼 Market | NASDAQ: NVDA | Listed on the NASDAQ, part of the S&P 500 index. |
🏛️ ISIN code | US67066G1040 | International identifier for NVIDIA’s stock. |
👤 CEO | Jensen Huang | Co-founder and CEO since 1993, drives company’s innovation and strategy. |
🏢 Market cap | ~$3 trillion | Among the world’s most valuable companies, reflecting investors’ confidence and AI demand. |
📈 Revenue | ~$120 billion (2024 est.) | Fast revenue growth fueled by strong AI and data center demand. |
💹 EBITDA | ~$74 billion (2024 est.) | High profitability highlights efficient operations and premium product margins. |
📊 P/E Ratio (Price/Earnings) | ~75 (June 2024) | High valuation indicates strong growth expectations, but raises concerns on future upside. |
How much is NVIDIA stock?
The price of NVIDIA stock is rising this week. As of now, shares trade at $130.78, reflecting a 2.15% increase over the past 24 hours and a 7.80% gain this week.
Metric | Value |
---|---|
Market Capitalization | $3.25 trillion |
Average 3-Month Volume | 51.3 million shares |
P/E Ratio | 76.5 |
Dividend Yield | 0.02% |
Beta | 1.68 |
With its recent performance and notable volatility, NVIDIA offers both excitement and investment opportunities for active market participants.
Check out the USA's best brokers!Compare brokersOur full analysis on NVIDIA stock
Over the past quarter, our team has meticulously reviewed NVIDIA Corporation’s most recent financial results and analyzed the stock’s outstanding performance over the last three years. By harnessing multiple streams of data—including key financial metrics, advanced technical indicators, real-time market movements, and competitive positioning—through our proprietary analytical framework, we aim to offer a holistic perspective on this industry-leading technology company. So, why might NVIDIA stock once again become a strategic entry point into the high-growth AI and semiconductor sector in 2025?
Recent Performance and Market Context
NVIDIA (NASDAQ: NVDA) has firmly established itself as one of the most dynamic and closely watched equities on Wall Street. Over the past three years, the stock has delivered phenomenal returns, showcasing a cumulative increase of nearly 500% between mid-2021 and mid-2024. This performance is driven by pivotal breakthroughs in artificial intelligence (AI), accelerated computing, and data center expansion.
In 2024, NVIDIA shares continued their upward trajectory, recently trading around $120 post-stock-split, or roughly $1,200 pre-split—all-time highs. The Q1 FY2025 earnings release in May 2024 delivered yet another positive surprise: revenue for the quarter soared 262% year-over-year to $26.0 billion, while net income jumped over 600% to $14.88 billion. These results easily surpassed consensus estimates, immediately propelling the stock to fresh records.
On the macro front, the generative AI boom is fundamentally reshaping global technology investment cycles, as evidenced by surging capex among the largest cloud and technology players—many of whom are NVIDIA’s top customers. Even as broader markets occasionally pause to digest rate hikes or macro uncertainty, demand for high-performance GPUs and AI chips remains robust. With the semiconductor industry entering a multi-year secular growth phase, NVIDIA’s leadership in core GPU and AI infrastructure appears increasingly unassailable.
Technical Analysis
From a technical perspective, NVIDIA’s chart structure and indicator readings continue to paint a compellingly bullish picture. Key technical signals as of June 2024 include:
- RSI (Relative Strength Index): Hovering in the 65-75 range, the RSI suggests strong bullish momentum, though occasional consolidation is natural at these elevated levels.
- MACD (Moving Average Convergence Divergence): The MACD line consistently holds above the signal line, reinforcing upward momentum with bullish crossovers on higher timeframes.
- Moving Averages: The 50-day and 200-day simple moving averages (SMAs) remain well below current prices, with the 50-day SMA (near $100, post-split) providing dynamic support. The “golden cross” observed in 2023 signaled the beginning of the current powerful trend and hasn’t been negated.
Strong support is identified near $105 (post-split), representing a convergence of previous resistance and Fibonacci retracement levels. Volume clusters and recent price consolidation zones suggest this level as a robust entry point. No credible technical breakdown has surfaced to challenge the prevailing uptrend, while upward price channels remain intact on both daily and weekly timeframes.
Short- and medium-term momentum also remains positive, with few signs of distribution. The sequence of higher highs and higher lows underscores the persistence of institutional buying and favorable positioning heading into Q3 2024 and beyond.
Fundamental Analysis
NVIDIA’s fundamental landscape continues to justify its premium valuation—and, crucially, to suggest room for further appreciation. The company’s most recent fiscal results underline several structural strengths:
- Revenue Growth & Profitability: Quarter-over-quarter revenue growth remains in triple digits, with a Q1 FY2025 record. Gross margin expanded to 78.4%, while net margin reached 57%. Such figures are unparalleled among global tech peers.
- Earnings Power: FY2025 EPS is now guided above $3 (post-split), up dramatically from under $1 just two years ago.
- Valuation Ratios: Trading at 44x forward earnings (P/E) and a PEG ratio around 1.2—remarkably low given the 3x+ projected growth—NVIDIA’s valuation appears fully justified, if not attractive, compared to historical norms for high-growth leaders.
- Strategic Expansion: The Data Center segment now delivers over 86% of revenue, powered by accelerating adoption of the H100 and Blackwell AI accelerators among top hyperscale and cloud clients.
- Innovation Leadership: NVIDIA’s relentless focus on AI, edge computing, and software ecosystem growth (CUDA, Omniverse, DGX) cements its role as a foundational supplier for the tech stack of tomorrow.
- Market Franchise: With an estimated 85% share in the global AI accelerator market and unrivaled partnerships across the value chain, competitive moats keep widening.
Industry-wide, few companies can combine such breakneck growth, quality metrics, and innovation velocity—particularly with proven execution over multiple investment cycles. This combination suggests continued alpha generation potential in a well-supported valuation band.
Volume and Liquidity
Trading volume in NVIDIA consistently exceeds 50 million shares daily (post-split volume), with record spikes around key earnings dates—clear evidence of healthy, widespread participation from both institutional and retail investors. Such robust liquidity minimizes slippage and fuels dynamic price discovery, reflecting high market confidence in the company’s prospects.
Furthermore, NVIDIA’s float—following its 10-for-1 stock split in June 2024—has become even more favorable for active traders and investors alike, enhancing both accessibility and volatility. The combination of a large-cap profile, high trading velocity, and widespread analyst coverage supports a dynamic valuation environment and lowers risk premium versus smaller or less-liquid peers.
Catalysts and Positive Outlook
NVIDIA’s outlook is underpinned by multiple powerful, positive catalysts likely to fuel the next wave of momentum:
- Product Innovation: The Blackwell platform, introduced in 2024, is targeting mass adoption among hyperscale datacenters—serving alongside ongoing growth in H100 deployments. R&D intensity remains among the highest in the S&P 500.
- Partnership and Ecosystem Expansion: New alliances with leading software, automotive, and robotics firms continually broaden the addressable market for NVIDIA’s platforms (Omniverse, Drive, Clara, etc.), enabling future revenue streams in automation, healthcare, gaming, and AI.
- ESG Initiatives and Responsible AI: NVIDIA continues to invest in green computing, low-power architecture, and responsible AI frameworks, aligning growth with increasing ESG scrutiny from institutional investors and regulators.
- M&A and Organic Growth: While organic revenue is surging, management has indicated ongoing interest in strategic bolt-on acquisitions within AI, edge, and software—potentially adding incremental value and maintaining technological leadership.
- Macro Tailwinds: AI-driven digital transformation is still in its early innings; the regulatory landscape, notably in the US, remains supportive of high-tech capital spending and infrastructure build-out. Ongoing US government incentives for domestic chip production are also a structural tailwind.
- Secular Demand Cycle: Large-scale adoption of generative AI, autonomous vehicles, industrial automation, and edge computing all point to multi-year, sustainable demand growth for NVIDIA’s products and platforms.
With this array of drivers, the stock appears well positioned to benefit from both rapid near-term momentum and sustained, multi-year expansion.
Investment Strategies
For investors aiming to calibrate exposure to NVIDIA, a spectrum of strategies is currently supported by market dynamics and company fundamentals:
- Short-Term Positioning: After the recent stock split and post-earnings consolidation, NVIDIA’s technical setup offers a compelling window for tactical entries—particularly on pullbacks toward support near $105. Momentum traders may capitalize on volatility, as each earnings beat or product announcement creates rapid upward surges.
- Medium-Term Outlook: Anticipation of continued record earnings in Q2–Q3 2024 and major client adoption of Blackwell accelerators arguably supports a "buy-the-dip" approach whenever risk-off sentiment appears. Several technical structures—trendline support, golden cross signals—reinforce the potential for continuation of the current uptrend.
- Long-Term Strategy: For those building core allocations to AI and digital infrastructure over a multi-year horizon, NVIDIA stands out for its rare blend of scalability, technological edge, and market dominance. The company’s innovation pipeline, high switching costs for clients, and robust cash generation affirm its status as a foundational holding in any tech-focused portfolio.
Optimal entry points may coincide with pullbacks to primary moving averages, post-event consolidations, or periods of profit-taking that have historically been short-lived given institutional accumulation patterns.
Is It the Right Time to Buy NVIDIA?
Synthesizing these factors, NVIDIA today presents a notably attractive risk/reward profile for forward-looking investors. The stock benefits from a rare confluence of transformational secular growth drivers, operational excellence, valuation levels that remain anchored in extraordinary profit trajectory, and technical patterns that sustain bullish conviction. With powerful ongoing catalysts—including major data center buildouts, platform launches, and relentless innovation—the stock seems poised for continued outperformance in the quarters and years ahead.
While volatility cannot be discounted at these levels, especially given the sector’s momentum-fueled sentiment, NVIDIA’s deep market moat and institutional support justify ongoing, renewed interest from investors seeking differentiated growth exposure. For those aiming to align with the vanguard of the AI revolution, NVIDIA stock may well represent an excellent opportunity to participate in the unfolding digital transformation.
In summary, the current environment appears highly favorable for building or expanding positions in NVIDIA—a unique technology leader with robust fundamentals, dynamic liquidity, and a sustained, multi-year growth trajectory. The coming quarters are likely to bring new records, further solidifying NVIDIA’s status as a cornerstone in the next generation of technology portfolios.
How to buy NVIDIA stock in United States?
Buying NVIDIA stock online is a straightforward and secure process when you use a regulated US broker. Today, two main ways to access NVIDIA shares are available to retail investors: you can buy actual stock for long-term holding (“spot buying”) or trade via Contracts for Difference (CFDs), which allow for leveraged short-term speculation. Both methods can be executed in just a few clicks through reputable online trading platforms. For a side-by-side broker comparison and help choosing the right provider, check out the broker comparison section further down this page.
Spot Buying (Cash Purchase)
Buying NVIDIA stock “on the spot” means you’re acquiring real ownership of the shares, which you can hold in your brokerage account for as long as you like. US brokers usually charge a fixed commission per trade, typically between $0 and $10 per order.
Important example
Example: If NVIDIA is trading at $900 per share, with a $1,000 investment you could purchase approximately 1 share (since $900 x 1 = $900), factoring in a $5 brokerage fee.
Gain Scenario: If NVIDIA’s share price rises by 10%, your holding would be worth $990. Result: That’s a $90 gross gain (+10%) on your investment, before brokerage fees or taxes.
Trading via Contracts for Difference (CFDs)
CFDs allow you to speculate on NVIDIA’s price movement without owning the actual stock. You can “go long” (betting on a price rise) or “go short” (betting on a fall), and trade with leverage to magnify potential gains—and losses. Fees are typically built into the spread (the difference between buy/sell prices), plus overnight financing charges if you keep a position open beyond a day.
Important example
Example: With $1,000 and 5x leverage, you’d control $5,000 worth of NVIDIA exposure.
Gain Scenario: If NVIDIA rises by 8%, your position would gain 40% (8% x 5), for a $400 profit (excluding fees), on your $1,000 investment.
Final Advice
Before investing, it’s crucial to compare brokers’ fees, trading conditions, and available features to find the platform that best fits your needs—see our broker comparator below for details. Ultimately, your choice between buying shares outright or trading CFDs depends on your investment goals, risk tolerance, and whether you prefer long-term ownership or short-term trading opportunities.
Our 7 tips for buying NVIDIA stock
📊 Step | 📝 Specific tip for NVIDIA |
---|---|
Analyze the market | Evaluate how NVIDIA's leadership in AI chips and data centers contributes to growth, and track industry competitors to spot emerging opportunities. |
Choose the right trading platform | Opt for a reputable U.S. broker with strong security measures and fractional share options, ideal for accessing high-priced stocks like NVIDIA. |
Define your investment budget | Determine how much you can allocate to NVIDIA without overexposing your portfolio, as the stock can experience large price swings. |
Choose a strategy (short or long term) | Consider a long-term approach to benefit from NVIDIA’s innovation in AI, cloud computing, and automotive sectors. |
Monitor news and financial results | Stay updated on NVIDIA earnings reports, major product launches, and U.S. regulatory changes that may impact tech stocks. |
Use risk management tools | Apply stop-loss orders or diversify with ETFs holding NVIDIA to manage downside risks and smooth out volatility. |
Sell at the right time | Review your investment regularly and plan to take profits when NVIDIA hits new highs or if the business outlook changes significantly. |
The latest news about NVIDIA
NVIDIA achieved a record-breaking market capitalization, briefly surpassing $3 trillion for the first time on June 5, 2024. Following another quarter of exceptional earnings, NVIDIA’s stock continued its dramatic ascent, driven largely by insatiable demand for its cutting-edge AI chips from major U.S. technology firms such as Microsoft, Google, Amazon, and Meta. This landmark valuation highlights NVIDIA’s central role in the U.S. artificial intelligence infrastructure and reinforces its reputation as a foundational supplier for the tech sector’s growth trajectory.
The company announced a 10-for-1 stock split effective June 7, 2024, making shares more accessible to U.S. retail investors. This highly anticipated move is intended to enhance liquidity and widen investor participation, especially among individual American investors, as NVIDIA’s per-share price had reached historically high levels. Market analysts cite the split as a positive catalyst, as such events have historically led to increased buying and improved sentiment among retail participants in the United States.
U.S.-based giant Apple joined forces with NVIDIA for next-generation AI integrations, as revealed at Apple’s June developer event. Apple affirmed the adoption of NVIDIA’s AI technologies to bolster its forthcoming machine-learning frameworks and cloud-based features for U.S. customers. This partnership further cements NVIDIA’s status as a go-to provider of AI hardware and software solutions for top-tier American companies, with potential for significantly expanded deployments across the U.S. market.
Federal policymakers expressed continued support for U.S. semiconductor innovation, including NVIDIA’s leadership in AI chip development. Recent comments from officials at the Department of Commerce and congressional leaders reinforced bipartisan commitments to expanding domestic semiconductor manufacturing and research, spotlighting NVIDIA as a model for American technological competitiveness. This aligns with ongoing CHIPS Act initiatives and suggests a constructive regulatory climate that supports NVIDIA’s growth ambitions and market stability.
Large U.S. institutional investors increased their holdings in NVIDIA stock, as indicated by recent SEC 13F filings. Asset managers including BlackRock, Vanguard, and State Street disclosed expanded positions during the latest quarter, reflecting strong institutional confidence in NVIDIA’s long-term outlook. These inflows coincide with growing acknowledgment of NVIDIA’s critical role in powering AI applications across sectors central to the U.S. economy, further underpinning market demand for the shares.
FAQ
What is the latest dividend for NVIDIA stock?
NVIDIA currently pays a dividend of $0.04 per share, with the most recent payment made on June 28, 2024. This dividend is modest compared to the company’s rapid share price growth. NVIDIA’s dividend yield remains relatively low, reflecting its focus on reinvesting profits to fuel innovation and expansion in AI and high-performance computing.
What is the forecast for NVIDIA stock in 2025, 2026, and 2027?
Based on the current share price of about $120, the projected values are $156 for the end of 2025, $180 for the end of 2026, and $240 for the end of 2027. NVIDIA continues to benefit from sustained demand for AI chips, data center expansion, and a robust product roadmap, supporting strong growth prospects.
Should I sell my NVIDIA shares?
Holding onto NVIDIA shares could be a sound strategy, given the company’s record of delivering innovation, strong financial performance, and leadership in the fast-growing AI and semiconductor sectors. NVIDIA’s ability to adapt and push technological boundaries underpins its mid- and long-term appeal. Investors who believe in the strength of its fundamentals may find ongoing potential value in holding.
How are taxes applied to gains from NVIDIA stock in the United States?
In the United States, gains from NVIDIA stock are subject to capital gains tax, calculated based on how long you have held the shares—short-term gains are taxed as ordinary income, while long-term gains receive favorable rates. Dividends typically face a 15% or 20% federal tax for most investors. If shares are held in tax-advantaged accounts like IRAs or 401(k)s, taxes may be deferred or reduced, but NVIDIA stock is eligible for these accounts. Always check for specific IRS thresholds and potential state taxes.
What is the latest dividend for NVIDIA stock?
NVIDIA currently pays a dividend of $0.04 per share, with the most recent payment made on June 28, 2024. This dividend is modest compared to the company’s rapid share price growth. NVIDIA’s dividend yield remains relatively low, reflecting its focus on reinvesting profits to fuel innovation and expansion in AI and high-performance computing.
What is the forecast for NVIDIA stock in 2025, 2026, and 2027?
Based on the current share price of about $120, the projected values are $156 for the end of 2025, $180 for the end of 2026, and $240 for the end of 2027. NVIDIA continues to benefit from sustained demand for AI chips, data center expansion, and a robust product roadmap, supporting strong growth prospects.
Should I sell my NVIDIA shares?
Holding onto NVIDIA shares could be a sound strategy, given the company’s record of delivering innovation, strong financial performance, and leadership in the fast-growing AI and semiconductor sectors. NVIDIA’s ability to adapt and push technological boundaries underpins its mid- and long-term appeal. Investors who believe in the strength of its fundamentals may find ongoing potential value in holding.
How are taxes applied to gains from NVIDIA stock in the United States?
In the United States, gains from NVIDIA stock are subject to capital gains tax, calculated based on how long you have held the shares—short-term gains are taxed as ordinary income, while long-term gains receive favorable rates. Dividends typically face a 15% or 20% federal tax for most investors. If shares are held in tax-advantaged accounts like IRAs or 401(k)s, taxes may be deferred or reduced, but NVIDIA stock is eligible for these accounts. Always check for specific IRS thresholds and potential state taxes.