How to Buy NVDA Stock

NVIDIA has become a very hot stock, with a nearly 150% increase over the last year alone. Over the last five years, $NVDA has returned investors just over 2600%. The stock recently underwent a 10:1 stock split which – while leaving the underlying value of the company the same – allows potential investors more opportunities to invest.

While the decision of whether NVDA is the right investment for you depends on many factors, including your risk tolerance, company financial information, economic outlook, your other holdings, goals, time horizons and more, there are a handful of ways you can purchase the stock if you do decide to get exposure, sometimes even in your retirement accounts. (If you would like to consult a professional about your investment strategies, consider matching with a financial advisor .)

NVIDIA Stock and Company Profile

A technology hardware company, NVIDIA makes specialized computer processors known as Graphics Processing Units (GPUs). The name is something of a misnomer. A GPU is a single-purpose processor, designed to efficiently handle extremely large, individual computations. This makes them very well suited to the high demands of graphics processing in video games and media and, for around 20 years, computer gaming was the primary market for single-purpose processors.

However, despite coming to be called a graphics processor, not all this chipset can do. A GPU is valuable for anyone who needs to handle low-volume, high-intensity calculations. This led to an explosion in demand for GPUs over the past 15 years as, all around the same time, several new technologies and industries needed single purpose processors. From artificial intelligence to blockchain, the demand for GPUs began to expand dramatically around 2010.

And NVIDIA is the industry leader in making GPUs. In fact, they are arguably the only company that specializes in making high-quality single purpose processors at a commercial scale.

This has led to enormous success for the company, and an accompanying rise in stock price. Like many technology companies, between 2016 and 2018 NVIDIA's stock began to soar. From a valuation around $0.50 per share in 2014, the company is now worth more than $100 per share. To put that in context, a $10,000 investment in 2014 would be worth over $2 million today.

Like many large companies, NVIDIA stock pays dividends. However, it typically does so at a very low rate relative to dividend stocks overall. In the last several years it has issued dividends of either $0.04 or $0.01 per share, a yield of around 0.01%. This can be compared to stronger dividend stocks like Verizon, which have paid dividends between $0.64 and $0.66 per share in recent years, with an average yield around 6.6%.

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How to Buy NVDA Shares

The company is listed on the NASDAQ exchange . Its stock is a publicly traded security, meaning that anyone who can legally trade stocks in the United States can buy and sell it freely. It is listed under the symbol NVDA, and you can buy it through any licensed broker or online trading platform.

To buy NVIDIA shares, you will generally need a brokerage account. To open a brokerage account you will need to provide certain information under what is called "Know Your Customer" laws. This will include personal identification information, such Social Security, tax or other government-issued identification numbers. It will also include basic financial information such as net worth, employment status and other investments.

There are two main ways to purchase stocks through a brokerage account.

You can open an account in person, with an individual broker. In this case, you will create account with your broker of choice, place money on deposit or give them access to your banking information, and then send a request to purchase NVDA shares on your behalf.

Or you can open an account with an online trading platform. In this case, you will create an account on your own behalf with the system. As with a personal broker, you will then either put money on deposit or give the system access to your banking information. You will then navigate to the NVDA ticker under the NASDAQ market and place a buy order to purchase shares of stock.

In all cases, you can buy NVDA stocks through two main mechanisms:

• Market Order – Buy the stock at its current share price at the time of purchase
• Limit Order – Buy the stock for up to a maximum price if available

There is always some lag time between when you issue a buy order and when the actual stock purchase is made. During that time, the price can change. With a market order , this means you might get the stock for a different price than anticipated. With a limit order, this means that your order may not process if the purchase price would exceed your limit.

For investors, there are many different brokerages you can choose from. Some of the largest include, but are not limited to:

• Fidelity – Good for technical/advanced investors who would like research tools
• Merrill Edge – Good for retirement investors and Bank of America customers
• ETrade – Good for online/individual investors who would like self-directed investing
• Vanguard – Good for investors looking to buy and hold mutual funds
• Charles Schwab –Good for investors looking for both an online platform and in-person advice

Oftentimes, you can also purchase individual stocks in your retirement account. For example, IRAs and Roth IRAs offer a lot of flexibility for your investments. For employer-sponsored plans like 401(k)s , you may have to check with your plan administrator.

A financial advisor can help you set up and maintain investment accounts while providing professional advice. Otherwise, major brokerages no longer charge to trade individual stocks anymore. While this might change in some edge cases, particularly highly specialized trading platforms, in most cases you will not pay a fee to buy NVDA stock.

The Bottom Line

NVIDIA's stock sells under the symbol NVDA. You can purchase it on the NASDAQ exchange through any licensed broker.

Tips On Individual Equity Investing

• When it comes to individual stocks, there are generally two categories: growth vs. value investments. Each will fill a different role in your portfolio, so let's discuss how they work.
• A financial advisor can help you build a comprehensive retirement plan. Finding a financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now.
• Keep an emergency fund on hand in case you run into unexpected expenses. An emergency fund should be liquid — in an account that isn’t at risk of significant fluctuation like the stock market. The tradeoff is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks .

Photo credit: ©iStock.com/Igor Kutyaev

This is not an offer to buy or sell any security or interest. All investing involves risk, including loss of principal. This article IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INTENDED TO PROVIDE LEGAL ADVICE, TAX ADVICE, ACCOUNTING ADVICE OR FINANCIAL ADVICE. Before making any final decisions or implementing any financial strategy, you should consider obtaining additional information and advice from your accountant or other financial advisers who are fully aware of your individual circumstances. SmartAsset's services are limited to referring users to third party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States that have elected to participate in our matching platform based on information gathered from users through our online questionnaire. We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors.

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