How to buy and invest in NVIDIA shares
AI chip provider NVIDIA has seen significant gains in its stock price over the past few years. Here’s everything you need to know about buying and investing in NVIDIA shares.
Buying NVIDIA stocks: how to invest
- Research NVIDIA shares
- Open an online share dealing account or download the IG Invest app
- Consider how much money you want to invest in NVIDIA
- Make your investment
How much will it cost to buy NVIDIA stocks?
| FX conversion | Standard commission | |
| IG Invest | 0.5% | £0 |
| Hargreaves Lansdown | 1% | £11.95 |
| AJ Bell | 0.5% | £5 |
| Interactive Investor | 1.5% | £3.99 |
NVIDIA is a US share listed on the US Tech 100 so when buying from the UK you’ll need to pay a FX fee.
What to consider before buying NVIDIA shares
Buying shares carries risk and if the markets turn against you, you could lose more than your initial investment. To help manage this risk, it’s important to have a thought through investment plan. Here’s some things consider:
Why are you investing?
Knowing why you’re investing can help guide key decisions such as how much you’re looking to invest, and how long you want to hold NVIDIA shares for.
Since investing comes with risk, it’s important to make sure you can afford potential losses if the markets turn against you.
When will you need the money?
When you buy NVIDIA shares, your capital will grow based on the value of the shares. This often provides higher returns than cash savings.
For the best returns, shares are typically held for 10 or more years. If you think you’ll need the money before then, you might consider shorter term options such as bonds, savings accounts or trading. If you’re still looking to invest, it’s worth opting for lower risk investments and diversifying your portfolio across different sectors.
Find out how to buy Apple shares.
How much risk can you tolerate?
Stock markets can be volatile and there’s always the risk that you could lose more than your initial investment.
Higher risk investments can generate significant returns, but also notable losses. Before investing in such assets, it’s important to know how much risk you can tolerate. If you won’t need the money for several years, you may be more likely to tolerate higher risk investments as your portfolio will have time to recover if the market turns against you.
NVIDIA is considered a higher risk stock as its share price is tied to its performance in the AI and data center sectors. In the long term, the company is likely to face competition from companies such as AMD and Intel. Large tech companies like Alphabet, Microsoft and Amazon are also are looking to create their own AI chips to reduce reliance on NVIDIA. If they succeed, NVIDIA’s share price could suffer as demand drops. However, if NVIDIA manages to remain a market leader in the sector its share price could see significant gains.
If you’re looking to invest in NVIDIA shares, it’s worth developing a risk management strategy to help mitigate any risks.
You should consider:
- Diversifying your portfolio to include both low and high— risk assets
- Stay up to date with the latest market news and closely monitor market movements
- Holding NVIDIA shares for 10 plus years
How to research NVIDIA stocks as an investment
Fundamental analysis is one of the most effective ways to determine the intrinsic value of NVIDIA stocks. It looks at external factors such as industry trends and financial statements to assess NVIDIA’s market potential. Here are some things to consider before buying NVIDIA stocks:
Net Revenue
Net revenue refers to the amount of money made through regular business operations. It shows all the money that a company has made over a set time period. This differs from profit which accounts for deducted expenses.
To calculate revenue, multiply the quantity of products sold by the cost. As NVIDIA has a multiproduct offering, the revenue for each product is calculated and then added together to get its total revenue.
Business model
To put it simply, a business model is how a company plans to make money, factoring in its products, services, anticipated costs and target markets. As market demand changes, successful companies adapt their business models accordingly, whilst upholding sustainable costs and competitive pricing.
NVIDIA’s main source of revenue comes from selling Graphic Processing Units (GPUs) to the gaming market. But it also provides hardware for data centers and cloud computing services and sells its AI technology to the automobile industry.
The company’s business model is capital light where it designs and develops high—performance chips which are then manufactured by third party companies. This helps keep costs down and enables NVIDIA to adjust production based on demand without investing heavily in infrastructure.
P/E ratio
P/E ratio helps investors to assess the market value of a stock and decide whether it’s undervalued or overvalued. A good P/E ratio varies between sectors so it’s worth comparing NVIDIA’s P/E ratio with other tech stocks for a more accurate overview. NVIDIA’s P?E ratio is calculated by dividing its current share price by its earnings per share (EPS).
Why buy NVIDIA shares
NVIDIA’s high— end chips are at the center of the AI revolution, powering everything from data centers, self—driving cars and large language models. Although the launch of DeepSeek has caused some investors to question if demand has been overstated, large tech companies such as Microsoft and Meta continue to invest heavily in them.
It’s not just AI chips that NVIDIA do well. Its CUDA software platform increases the power and efficiency of its hardware, making it the go to tool for most businesses and developers building AI applications. Whilst other tech companies are working hard to build AI chips which meet more specific user needs, the launch of these are not expected for a good few years. So, for now, NVIDIA can enjoy its dominant market position.
The company is also benefiting from strong industry demand with sectors such as finance, healthcare, sustainability and eCommerce all adopting AI to help improve efficiency.
What to do after you buy NVIDIA shares
Once you’ve invested in NVIDIA shares it’s essential that you actively manage your position on our online platform, or the IG Invest app. Financial markets can be unpredictable so it’s important keeping an eye on recent market news and stock performance when making important investment decisions.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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