Single shares of the graphics card company Nvidia are at a whopping 657€ at the moment. Read here why it’s still a very good purchase currently if you’re planning on a long-term ROI (return on investment) regarding 10-15 years in the future.
Above: a Tesla/NVIDIA GPU cluster
1) AI development: Nvidia is one of the forerunners on the development of AI, Artificial Intelligence. Not only is this an industry sector which will be transformative unlike any other for the current century (and maybe more ahead), they offer concrete hardware for development already. If you’re interested in learning it for yourself, look out for „TensorFlow“ keywords or „Tensor core hardware“ here. Equipment is available for a few hundred bucks already
2) the ARM deal: although it can be taken as a hostile takeover, the purchase of British CPU company ARM, which is currently still under investigation, will be a pusher for the company like no other before. Maybe Nvidia may be late in the game but what they lack is the CPUGPU symbiosis competitor AMD can already offer since the ATI deal back in the 2000s
3) cryptocurrency mining: obscure as this may sound, Nvidia graphics cards are among the best for cryptocurrency mining, especially popular ones like Ether. Oh, and they are a good for gaming too!
4) as long as this pandemic may last, people will play video games. And those gamers need those graphics cards, the sooner and the more popular (thus more expensive), the better
Then there are the incredible company vitals, financial aspects are the most important if you plan to invest your hard earned money into a company.
Get that: fiscal first-quarter revenue soared 84% year over year to $5.66 billion. Gaming revenue doubled to $2.76 billion. Data center revenue 79% up to $2.05 billion. Earnings per share 106% year over year to $3.03. All of the mentioned figures which was even better as prognosed by the experts in this field (lower revenue and non-GAAP earnings per share of $5.41 billion and $3.28, respectively). [via]
What the company wants to do now, as is the trend in the high-tech industry sector since the pandemic began (e.g. Apple and Tesla did this too), is to split its stock and double it in sum (from 2 billion to 4 billion), which was announced in May and approved by the share holders some weeks later. Date will be the 20th of July by a ratio 1:4; which basically means, if you hold a share in Nvidia by 19th of July, you will own 4 the day afterwards.
Companies do this for a couple of reasons, some of the most popular ones are „we are overvalued, we now help ourselves“ or „we want to enable the small investors to get a piece of us by lowering the entrance bar“. Both of it is certainly true, we shouldn’t forget though publicly listed companies want to earn more money which will certainly also happen in the case of Nvidia, albeit not in the first months or first year after split. But possibly in years and years to come afterwards. Plus, the last split Nvidia did was in 2006; as you might see easily you can become a part of history here as this will certainly not be the case for years, maybe decades, to come.
Thus fear not to get active if you can spare a few hundreds of Euros but do it quick: latest tomorrow or maybe even by July 19th which is Monday, as this is the final date the stock split goes ex-dividend. The latter translated means: sources which state that you need to hold an Nvidia share by June 21 2021 already are simply false. That is the only quirk here which was announced at Nvidia’s annual meeting of stockholders on June 3. A bit confusing, but hey: it was never easy to earn money in the real world anyway, right?
Hint: I’m not affiliated with the stock market or the company I wrote about in this article. I’m just an IT expert and want to share an important insider information about a graphics company I know since a little child. 🙂