Nvidia (ticker NASDAQ: NVDA) is an American multinational corporation incorporated in the state of Delaware and headquartered in Santa Clara, California. The company was founded on April 5, 1993, and was founded by Jensen Huang , Chris Malachowski and Curtis Priem, who previously held leadership positions in other high-tech companies. Initially, the company focused on the development of accelerated graphics technology in computers, as it saw significant growth potential in the board game industry.
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Through mergers and acquisitions, the company began to grow rapidly and launch new products. Today, Nvidia focuses on computer graphics, specifically on the creation of the hardware itself, as well as on the development of artificial intelligence, which is based on the company’s two main groups of chips, including Tegra media processors .
The company pioneered the computer graphics market with the invention of the graphics processing unit (GPU) in 1999, which soon also led to a breakthrough in parallel processing and helped make supercomputers affordable and accessible. At the same time, the main efforts are concentrated in areas such as computer games, professional visualization, creation of data processing centers.
Separately, it is worth noting that significant progress has been made in the field of unmanned piloting, healthcare and deep learning technologies.
Interesting facts about NVDA ( Nvidia )
On January 24, 2022, Meta Platforms (formerly Facebook) selected Nvidia technology for its Artificial Intelligence Research Supercluster (RSC). This AI supercomputer will be the largest customer installation of the Nvidia DGX A100. The Nvidia DGX A100 system includes analytics, learning and inference functions.
Nvidia took advantage of the COVID-19 epidemic. During the pandemic, increased demand from people who work, study and play games at home has expanded the market for games, data centers and professional visualization. According to CEO Jensen Huang, more and more companies are adopting artificial intelligence and scaling their hyperscale and cloud services.
Nvidia’s graphics division focuses on GeForce graphics processors for gaming and PCs, GeForce NOW game streaming infrastructure, and related infrastructure and solutions for gaming platforms. It also develops Quadro /NVIDIA RTX graphics processors, GRID software and automotive infotainment platforms.
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A division of Nvidia Computing and Networking focuses on data center platforms, artificial intelligence, high performance and accelerated computing. The company also develops an automotive multimedia display with artificial intelligence, unmanned vehicles, processors for BTC mining and Jetson modules for robots and other embedded systems.
Nvidia’s success is driven by innovation. For example, in 2018 the company reinvested in Turing architecture computer graphics and released the world’s first GPU capable of ray real-time tracing. In the same year, the corporation introduced the RAPIDS™ open source GPU acceleration platform to accelerate data processing and machine learning.
In 2019, the company advanced in various markets including data centers, autonomous vehicles, high-performance computing, embedded and professional graphics solutions. Then, in 2020, the company was acquired by Mellanox. The acquisition brought together two global leaders in high-performance computing.
During late 2021, AMD increased its share of the PC GPU market, taking market share from Nvidia. However, it did not have much effect on the company’s stock. Nvidia’s stock price is expected to continue to rise.
Nvidia Stock – A promising long-term investment
Nvidia, the dominant force in the graphics processor market, holds significant promise for long-term investment due to its strong market position and innovative advancements.
In 2023, Nvidia had an approximately 83% share of the discrete GPU market, which is key to capitalizing on the gaming industry’s projected growth to $295 billion by 2026. Its GPUs are essential in the gaming industry, meeting the growing demand for quality graphics and performance.
Talking about the AI industry, Nvidia’s GPUs are key to AI training and inference, with AI chip revenue expected to exceed $30 billion by 2027. The widespread adoption of Nvidia’s CUDA platform by developers further solidifies its leadership in AI technologies.
Nvidia’s strong position is also reflected in its data center revenue, which surged 125% year-over-year to reach $10.32 billion in Q3 2023. This growth underscores the escalating need for high-performance computing and cloud services driven by exponential growth in data creation.
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Nvidia’s outlook is also bolstered by strategic acquisitions. The purchase of Mellanox Technologies enhances its data center capabilities, while the planned acquisition of Arm Holdings aims to expand its influence in the mobile and Internet of Things markets.
In the automotive sector, Nvidia is leading the way in autonomous vehicle technology with its Drive platform, a market estimated to grow to $556 billion by 2026.
Nvidia’s significant market share, innovative advancements, and strategic acquisitions make it an interesting long-term investment that is poised for sustained growth and profitability.
Nvidia Stock Outside the US
Nvidia shares are traded on the NASDAQ stock exchange in the United States under the ticker symbol NVDA. There are several ways to buy Nvidia stock outside the US:
- Buying securities by opening an account with a forex broker that offers access to international markets, including the US stock exchange where Nvidia shares are traded.
- Investing in stock indexes or exchange-traded funds (ETFs) that hold Nvidia shares in their portfolio . For example, ETFs like ProShares Ultra Semiconductors (USD), VanEck Semiconductor (SMH), AXS Esoterica NextG Economy (WUGI), Simplify Volt RoboCar Disruption and Tech (VCAR) has shares of Nvidia in its composition. In order to buy Nvidia shares through the ETF, it is also necessary to open an account with a broker with access to US trading venues.
- Some banks have recently opened up the possibility of buying shares through mobile applications.
- Purchase through investment companies. Some multinational investment companies have access to international stock markets and may offer access to Nvidia shares.
All of the above options involve working through an intermediary. Only the broker provides access to international stock markets. In the third and fourth cases, an intermediary in the form of an investment company or a bank will do it, and here you will pay a high commission.
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NVIDIA and its collaboration for a better future
NVIDIA has joined forces with MediaTek to create a new SOC (System on a Chi) that is set to revolutionize the portable gaming console market.
The new chip, based on TSMC’s 3nm process, will be ready for mass production in the first half of 2025. It will differ from NVIDIA’s existing semi-standard solutions, which have already shown interest from several Chinese customers. This could mark NVIDIA’s return to the console market. The company already has some experience in this area thanks to the Nintendo Switch and Shield platforms .
The companies could join forces to create a portable gaming console. NVIDIA already has the GeForce platform Now, which enables game streaming to mobile devices. A partnership with MediaTek could lead to a dedicated gaming device that surpasses smartphones or tablets in terms of performance and functionality.
NVIDIA, with its innovations in graphics and artificial intelligence, together with MediaTek, which specializes in mobile processors, could create a powerful combination that will change the way we look at gaming on handheld computers.
