Unlock Financial Growth: Analysis of Buying Nvidia Stock in 2024

Quarterly Update, March 2024

• NVIDIA announced a Q3 record revenue of $18.12 billion, up 206% year-over-year and 34% quarter-over-quarter, as of October 29, 2023.
• Data Center revenue hit a record $14.51 billion, up 279% year-over-year and 41% quarter-over-quarter.
• NVIDIA distributed a $0.04 per share cash dividend on December 28, 2023, to shareholders recorded on December 6, 2023.
• In Q3, NVIDIA's GAAP earnings per share jumped to $3.71, over 12 times higher than last year and 50% more than the previous quarter. Non-GAAP earnings per share reached $4.02, almost six times last year's amount and up 49% from the last quarter.

Outlook

• For the fourth quarter of fiscal 2024, NVIDIA expects:
• Revenue to be approximately $20.00 billion, plus or minus 2%.
• GAAP and non-GAAP gross margins are around 74.5% and 75.5%, respectively, plus or minus 50 basis points.
• GAAP and non-GAAP operating expenses to be approximately $3.17 billion and $2.20 billion, respectively.
• GAAP and non-GAAP tax rates are around 15.0%, plus or minus 1%, excluding any discrete items.

Why Own Nvidia Stocks?

Nvidia, renowned for its production of cutting-edge graphics processing units and integrated circuits, has captured the spotlight in the investment world amidst the surge in artificial intelligence. The company's valuation soared to an impressive $2 trillion recently, fueled by the skyrocketing demand for its chips. If you're contemplating whether Nvidia deserves a spot in your investment portfolio and are looking for guidance on how to acquire its shares, here are some key points to ponder.

How to Buy Nvidia Stock?

To purchase Nvidia stock, you'll need to utilize a brokerage account. Fund your account, then navigate the brokerage's platform to find Nvidia using its ticker symbol "NVDA." Determine the quantity of stock you wish to buy and execute the trade. It's important to note that direct stock purchases from Nvidia are not an option.

Do Stock Research

The prospect of investing in a standout S&P 500 stocks can be enticing, yet making your selection solely on the basis of its current or historical performance doesn't provide a complete overview.

To gain a comprehensive understanding, it's imperative to conduct both qualitative and quantitative analysis on any company you're contemplating for investment. This entails examining the company's leadership, assessing its competitive landscape, and scrutinizing its financial health. Additionally, it's also essential to consider the broader perspective, such as your investment objectives and whether Nvidia aligns with your strategy for achieving these goals.

Assess Nvidia’s Fit for Your Portfolio

Investing in stocks is a commitment to the long haul. Before venturing into the stock market, it's wise to ensure your immediate financial needs are secured, including an emergency fund and short-term goals such as reducing debt, setting aside funds for travel, or planning for home renovations.

A good guideline is to invest funds that you will not need for at least the next five years. This strategy provides your investments with the opportunity to weather any short-term market volatility.

Diversification is key in investing. By spreading your investments across different asset classes, you can mitigate the risk of significant losses. For instance, if your portfolio is heavily weighted towards technology stocks, consider diversifying into other sectors to protect against sector-specific downturns.

If you're uncertain about how to manage your portfolio, consider utilizing TradingView as your stock screener to directly assess the key metrics of each company.

As you delve deeper into your trading journey, learning how to use stock screeners effectively becomes a skill that can significantly impact your overall success in the market.

Consider Your Budget in Nvidia Investment

Consider carefully the number of Nvidia shares you wish to purchase and the order type that best suits your transaction.

The decision on the quantity of Nvidia shares to buy rests with you. However, it's important to evaluate your existing investments and how investing in Nvidia fits with your financial comfort level and goals.

Once you've determined the number of shares you're interested in, there are several methods to execute your purchase, such as market, limit, stop-loss, and stop-limit orders. For those new to investing, market orders are typically the most straightforward option.

Use Intellectia.AI to do Nvidia Stock Research

Intellectia.AI is an AI-driven platform dedicated to providing in-depth stock research and analysis, delivering insightful investment recommendations tailored for all types of investors. Its integrated AI chatbot stands ready to offer immediate responses to any financial queries you might have. Considering its advanced features, why not leverage Intellectia.AI for conducting thorough research on Nvidia stock and determining if it aligns with your investment portfolio?

AI Chatbot

Before delving into an in-depth analysis of Nvidia stock, consider starting with some preliminary inquiries about Nvidia, such as:

As observed, the Intellectia.AI chatbot delivers immediate responses from multiple perspectives, offering insights into the stock's performance, including financial outcomes, earnings, revenue, and potential risks.

Watchlist

First and foremost, by adding NVIDIA to your watchlist, you'll be able to monitor the real-time fluctuations of Nvidia stock as they happen, keeping you in the loop with its market movements.

Activate the Marker feature, and you'll notice a blue icon highlighted on the chart. Hovering your mouse over this icon reveals the events that have influenced the stock's price, providing clarity on the factors driving its fluctuations.

One-Click Tecnical Analysis & Trade Idea

If you're unsure of what questions to ask and prefer Intellectia.AI to provide a comprehensive technical analysis from a fundamental standpoint, simply select the Technical Analysis model. Alternatively, for insightful recommendations on whether to purchase the stock, you can opt for the Trade Idea feature.

See, Intellectia.AI employs simple and accessible language to present technical analysis from multiple perspectives based on the chart. I believe its clarity and simplicity make it particularly user-friendly for all investors, especially those just starting out.

Financial Data Hub

Intellectia.AI compiles a vast spectrum of financial data, encompassing news articles, financial reports, YouTube content, social media updates, corporate documents, and earnings discussions, into one seamless, intuitive platform. When you're looking to gather news or documentation on Nvidia, there's no longer a need to sift through Google. This efficient system not only centralizes your search but also distills the essence of the information, ensuring you get straight to the heart of what matters.

Is NVIDIA Corporation Under- or Over-valued?

NVIDIA seems primed for sustained expansion, particularly within the realms of AI and data center sectors. Despite the stock's remarkable ascent, future earnings forecasts by analysts and the bullish market trajectory for AI hint at the potential for further price appreciation, suggesting that the stock might not be overvalued currently. Yet, it's crucial to acknowledge the intricate nature of stock valuation, shaped by myriad elements such as market sentiment, competitive dynamics, and overarching economic trends. Investors are advised to engage in comprehensive research and weigh their investment approach and risk appetite carefully prior to making any investment choices.