How to buy Nvidia shares (NVDA) from the UK: step-by-step guide

In today's rapidly advancing technological landscape, NVIDIA (NVDA) has emerged as a key player in driving innovations in graphics and artificial intelligence solutions. This has revolutionised our interaction with the digital realm, encompassing video games, cloud computing, autonomous vehicles, and beyond.

This guide aims to simplify the process of purchasing NVIDIA shares, while also providing insights into the company's history, business model, and recent achievements.

NVIDIA Shares UK

What is NVIDIA?

NVIDIA Corporation, a global technology firm headquartered in Santa Clara, California, was established in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem. Initially focusing on graphics processing units (GPUs) for gaming and professional markets, especially in the gaming sector, NVIDIA has since ventured into system-on-a-chip (SoC) units for mobile and automotive sectors.

The company has been instrumental in shaping computer graphics, virtual environment simulations, and more recently, artificial intelligence (AI) and machine learning advancements.

Consequently, NVIDIA has not only become the leading manufacturer of graphics cards for gamers but has also made significant strides in artificial intelligence applications, autonomous driving, and cloud computing. This positions NVIDIA as a cornerstone in the infrastructure of modern technology.

Thanks to its impressive recent performance and optimistic growth forecasts spurred by the AI boom, NVIDIA now ranks among the world's largest companies by market capitalisation. It stands within the illustrious ‘Magnificent 7', alongside Apple, Microsoft, Alphabet (Google), Meta (formerly Facebook), Amazon, and Tesla.

👉 More information: Investing in Artificial Intelligence – Stocks, investment funds and ETFs

General data of NVIDIA Shares

NameNvidia Corporation
TickerNVDA
ISINUS67066G1040
Where is it listed?Nasdaq

Who is the CEO of NVIDIA?

nvidia stock buy
Jensen Huang, CEO of Nvidia. 
Source: businessinsider.es

Since its inception in 1993, Jen-Hsun Huang has been at the helm of NVIDIA, serving as CEO. He has been key to the company's development and growth. Under his guidance, NVIDIA has evolved into a leading technology enterprise, renowned for its pioneering innovations in graphic computing and artificial intelligence (AI).

Who are the owners of NVIDIA?

The ownership of NVIDIA extends beyond its management team, predominantly lying in the hands of institutional investors or major global investment funds.

Below is a list showcasing the largest shareholders in NVIDIA, a company at the forefront of AI development:

Vanguard Trust8.2%
BlackRock Advisors5.6%
Fidelity Management & Research5.15%
State Street Corp3.71%
Jen-Hsun Huang, the CEO of Nvidia3.5%
Source: MarketScreener.

Jen-Hsun Huang (in 5th position) is the sole individual among the primary shareholders, distinguishing himself from the institutional investors.

Where to buy nvidia stock?

Practical example with XTB

This guide will walk you through the process of buying NVIDIA shares using XTB, a broker known for its competitive edge and user-friendly interface.

Assuming you already have an account with XTB, we'll focus solely on the operational aspect. If you're yet to open an account, refer to the section in this article that covers account setup with XTB.

👉Learn more about XTB: XTB review

Step 1: Search for NVIDIA shares (ticker: NVDA)

Upon logging into the xStation, XTB's trading platform, locate the asset search feature in the top left corner. Here, type in “NVIDIA” or its ticker symbol “NVDA”:

From the dropdown, select the NVIDIA share listed on the Nasdaq stock exchange. Click on the candlestick icon to open the chart and view its performance.

Step 2: Analyse Nvidia's stock

The next step involves analysing NVIDIA's current standing to decide if its shares are a worthwhile investment. Follow these steps for evaluation:

  1. Firstly, click on “‘Information” to view basic stock details, including trading hours, fees, and the currency.
  2. Navigate to the ‘Market Data‘ tab to find crucial financial ratios like P/E ratio, EPS, ROE, and debt ratio. These metrics will aid in evaluating the company's financial health.
  3. Lastly, the ‘Performance‘ tab presents historical data on stock price movement and recent dividend payouts.

Armed with this fundamental and technical information, you can make an informed decision on investing in NVIDIA and determine the capital allocation based on your financial capacity.

Step 3: Set the order and buy Nvidia shares

Now, we'll move on to the actual purchase of NVIDIA shares, following these steps:

  • Create a purchase order: To open an order, click anywhere on the chart with the right click, and a dropdown will appear; choose the first option: “New order“.
  • Set the purchase order: Add information such as the type of order, number of shares and investment amount. For example, you can select a market order to purchase half a share (as XTB allows buying fractional shares).

Finally, all that remains is to click on “Buy”, and the shares will become part of your portfolio.

👉 Looking for a broker to buy shares in the United Kindom? Consider your options carefully, focusing on factors such as fees, platform usability, and available investments.

When does NVIDIA pay dividends in 2024?

NVIDIA has maintained a consistent dividend policy, rewarding its shareholders with regular payments since the company started paying dividends in 2012.

Here are the details for NVIDIA's upcoming dividend payments:

  • Ex-dividend date: 05/03/2024
  • Payment date: 27/03/2024
  • Dividend rate: $0.04 per share
  • Dividend yield: 0.02%
nvidia shares dividends
NVIDIA Dividend Payment History
Source: Nasdaq.com

As can be seen in the dividend history, NVIDIA currently pays $0.04 per share quarterly (that is, approximately 0.02%), although in the past dividends were more generous.


Read more about dividends here:


Why buy NVIDIA shares in 2024?

There are several compelling reasons why investors might consider buying NVIDIA shares.

Leadership in the chip market (GPUs)

NVIDIA has firmly established itself as a leading force in the production of Graphics Processing Units (GPUs), outpacing its competitors. These chips are crucial not only for the gaming industry but also for artificial intelligence (AI) applications and data centres. NVIDIA's diversification into these areas ensures steady demand for its products across various growing sectors.

Solid financial results

NVIDIA's dominance in the GPU market has translated into remarkable financial outcomes, consistently exceeding investor expectations with significant growth rates.

For instance, the company's net income has seen a sevenfold increase over the past year (2023), tripling from the peak figures of 2021. This financial growth has propelled the basic earnings per share (EPS) from $1.76 to more than $12.

how to buy nvidia shares
Nvidia P&L account at year-end 2023 | 
Source: Yahoo Finance

Part of this impressive growth is attributed to the data centre segment, which expanded by 409% compared to the previous year. However, NVIDIA's gaming and graphic visualisation segments have also contributed to its overall success.

create nvidia account
Nvidia business areas

All in all, NVIDIA has once again surpassed analyst predictions, demonstrating an annualised sequential growth of 20%. This consistent performance highlights why NVIDIA shares are a potentially attractive investment in 2024.

NVDA stock price and its growth in the stock market

nvidia share price

The historical performance of NVIDIA's stock price has proven highly rewarding for long-term investors. Despite not surpassing previous highs immediately following the 2008 financial crisis, NVIDIA's solid operational foundation has endowed the company and its stock with steady and enviable growth potential.

The stock market journey of NVIDIA, marked by its ups and downs, has consistently trended upwards, with each support level surpassing the last. The company's strong fundamentals have always provided a solid justification for these long-term positive trends.

The artificial intelligence boom

NVIDIA sits at the heart of artificial intelligence (AI) development, supplying the critical hardware infrastructure necessary for advancing deep learning and cognitive computing technologies. This strategic position offers NVIDIA a significant competitive edge, as AI is increasingly regarded as a monumental leap for humanity, akin to the advent of the Internet or the Industrial Revolution.

Experts' recommendations for NVIDIA shares

Investing in NVIDIA shares is generally viewed positively within the investment community, even as the company trades at high valuation multiples.

For instance, an analysis on Yahoo Finance reveals a consensus among 45 analysts recommending a ‘buy' or ‘strong buy', with a target price significantly above its current level. Remarkably, there are scarcely any recommendations to sell or sceptical views on the stock.

nvda stock
Source: Yahoo Finance

This optimistic outlook is rooted in NVIDIA's consistent performance, surpassing analyst expectations, especially in terms of Earnings Per Share (EPS) – a key indicator in fundamental analysis. Similar positive sentiments extend to the company's revenue and profits.

Exploring other giants in the tech sector

Should you find yourself still keen on expanding your investments within the technology sector, consider exploring detailed analyses of the current leading tech companies:

👉 Investing in Google stock, under its parent company Alphabet, that ventures beyond its search engine, including cloud computing and artificial intelligence, make it a compelling choice for investors.
👉 Investing in Amazon stock, which counts with massive growth, from its beginnings in Jeff Bezos' garage to a market leader in e-commerce and cloud computing, presents an attractive investment opportunity.
👉 Investing in Microsoft stocks , that offer a strong investment case through its diversified product range, including cloud services, software, and hardware.
👉 Investing in Tesla stocks, known for its significant price fluctuations and the influence of its CEO, Elon Musk. Review Tesla's fundamentals and consider how it fits into your diversified investment portfolio. The decision to buy should align with your financial goals and risk tolerance.
👉 Investing in Meta stocks, is also, owning a piece of its vast operations, including social media platforms like Instagram and WhatsApp.
👉 Investing in Netflix stocks, connects you with a leading entertainment company that has significantly reshaped how people consume TV shows and movies

Conclusion

NVIDIA stands at the forefront of technological advancement, making its shares a compelling consideration for investors. With its consistent financial growth and central position in driving the AI revolution, NVIDIA embodies the fusion of innovation and investment potential, offering a unique opportunity to partake in the tech industry's future.

FAQs

How does NVIDIA contribute to AI?

NVIDIA provides essential hardware for AI development, enabling advancements in deep learning and cognitive computing.

What makes NVIDIA's GPUs so important?

NVIDIA's GPUs are critical for high-performance computing, gaming, and AI applications, driving demand across diverse sectors.

How has NVIDIA's stock performed historically?

NVIDIA's stock has shown significant growth, particularly appealing to long-term investors due to its steady upward trajectory and technological advancements.

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