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What Is NVIDIA and How to Trade It?

Date Modified: 24/03/2024

Ever since its establishment in 1993, NVIDIA (NVDA) has proven to be a trailblazer in the technology sector with its highly-demanded GPUs, as well as a leader in Artificial Intelligence and all things technology.

This article explores NVIDIA’s history, accomplishments, business model, and more:

an illustration of NVIDIA chip.

TL;DR

  • NVIDIA is a big tech company based in Santa Clara, California, and founded in 1993.
  • NVIDIA specializes in GPUs, wireless communications, hardware, and software.
  • Some of NVIDIA’s main revenue streams include professional visualization, data centers, and gaming.
  • NVIDIA’s shares can be traded with Contracts for Difference (CFDs).

What Is NVIDIA?

NVIDIA is an American, Santa Clara-based, multinational technology company that specializes in graphics processing units (GPUs) among other technologies.

Who Founded NVIDIA?

NVIDIA was founded in April 1993 by three electrical engineers; Jensen Huang, Chris Malachowsky, and Curtis Priem.

Huang is a Taiwanese-American businessman who was born on February 17, 1963. He holds a master’s degree in electrical engineering from Stanford University (class of 1992) and as of February 2024, serves as NVIDIA’s CEO.

Malachowsky is an American electrical engineer, who was born on May 2, 1959, and grew up in New Jersey. He graduated with an MSc degree in electrical engineering from Santa Clara University in 1986.

Priem was born in 1959 and is also an electrical engineer. From 1986 to 1993, he served as a senior staff engineer at the American tech company, Sun Microsystems, where he developed the GX graphics chip.

What Products Does NVIDIA Offer?

NVIDIA offers a plethora of services and products that can be segmented into four main categories; graphics processing units, automotive hardware, wireless communications, and software.

NVIDIA’s Graphics Processing Units (GPUs)

Graphics Processing Units, otherwise abbreviated as GPUs, are electronic circuits designed for image and graphics processing, hence making them essential in industries such as gaming, which demand higher image processing capabilities.

Some of NVIDIA’s most popular GPUs include the GeForce RTX series and the Tesla V100.

NVIDIA’s Automotive Hardware

NVIDIA manufactures hardware that can facilitate self-driving systems and improve driver assistance functions. Some examples of this include NVIDIA’s Drive series, such as Drive CX and Drive PX.

NVIDIA’s Wireless Communications

As the name suggests, wireless communications refer to the transferring of information (like sound) without the need for a wire. One example of NVIDIA’s wireless communications services is the NVIDIA Aerial.

NVIDIA’s Software

Simply put, software is comprised of commands that allow computers to run applications and perform certain functions.

NVIDIA’s software includes cloud computing services such as BioNemo, NVIDIA NeMo, and Riva Studio.

NVIDIA’s Brief History: Products Timeline

Over the years, NVIDIA has heavily contributed to the development of transformative technologies that have played a role in a plethora of markets and industries. Here’s a brief timeline of NVIDIA’s main products:

1993 - 3D Graphics

In 1993, NVIDIA was established as a 3D Graphics company aimed to enter the gaming and multimedia industry.

1999 - Graphic Processing Units (GPUs)

In October 1999, NVIDIA launched the GeForce 256 product line, the first-ever line of GPUs.

2006 - Compute Unified Device Architecture (CUDA)

In 2006, NVIDIA introduced Compute Unified Device Architecture, commonly referred to as 'CUDA,' a technology that enables software to accelerate computing processes through GPUs.

2012 - Artificial Intelligence (AI)

In 2012, NVIDIA started tapping into the world of Artificial Intelligence (AI) in the AlexNet neural network which is used for image processing.

2018 - RTX

In 2018, NVIDIA unveiled the RTX platform, an application tailored for crafting intricate, large-scale models utilized in gaming, architecture, and other professional workstations.

2022 - Omniverse

In 2022, NVIDIA launched its NVIDIA Omniverse Platform which aims to develop the metaverse technology.

NVIDIA’s Main Revenue Channels

NVIDIA makes the majority of its revenue from the following:

Gaming

NVIDIA is no stranger to the gaming industry, as its GPUs are renowned for their high-end performance. Accordingly, it may not come as a surprise to learn that one of NVIDIA's main revenue streams is from the gaming industry, especially from products such as the GeForce. The company's services and products are not only used by individual gamers but also by professional gamers and in gaming tournaments, making them very popular and highly regarded.

Data Centers

NVIDIA’s data centers play a pivotal role in the company’s revenue growth as its data centers are designed to process a large amount of data, which is essential. Additionally, the company’s data centers are used to run cloud computing and AI processes.

Professional Visualization

NVIDIA’s professional visualization services, which can be used in servers and workstations, cater to various industries like architecture and engineering and have proven to be invaluable to the company’s revenue growth.

Some of these highly sought professional visualizations include 3D models, structuring, and simulations.

How to Trade NVIDIA’s Stock

Given its prowess and success, many traders and investors may be interested in potentially benefiting from NVIDIA’s gains.

There are multiple ways to trade NVIDIA (NVDA), with one of the main methods involving trading share Contracts for Difference (CFDs) on the Plus500 platform.

Share CFDs trading allow you to trade on both rising and falling NVIDIA share prices without granting you actual ownership of the stock.

Additionally, share CFDs are leveraged, which means that both gains and losses are amplified, depending on your position and the market direction.

If trading share CFDs aligns with your goals and needs, you may consider trading them with platforms like Plus500.

However, if you feel you're not quite ready to trade CFDs, you can try it out with Plus500’s free and unlimited Demo account mode, which allows you to trade NVIDIA CFDs in real-market conditions and prices without having to commit your real capital.

FAQs

Who owns NVIDIA?

As of February 2024, NVIDIA’s main shareholders are the company’s CEO Jensen Huang, its executive VP and CFO, Colette Kress, and a member of NVIDIA’s Board of Directors, Mark A. Stevens.

Does NVIDIA pay dividends?

Yes, NVIDIA pays dividends to its shareholders quarterly.

Is NVIDIA a good stock to buy?

Whereas many analysts claim NVIDIA is a good stock to buy (as of February 2024), the real answer depends on your goals and financial situation. You must always conduct your own research or seek professional advice.

How to Trade NVIDIA stock?

You can buy NVIDIA’s stock on investing platforms like Plus500 Invest* or open positions on NVIDIA CFDs on platforms like Plus500.

*Availability subject to regulation.

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