Nvidia Corporation
(NDQ: NVDA)Share Price and News
About Nvidia
Nvidia is a company in the GPU-accelerated computing space. GPU is short for graphics processing units and these are computer chips in their own right as well as chip components. These are designed to handle and accelerate graphics workloads and display graphics content to the extent that Central Processing Units (CPUs) could not at the time. This enabled the growth of PC gaming market.
These days, GPUs are behind modern AI, because they act as the ‘brain’ of computers, robots and self-driving cars. In other words, GPUs help them operate by ensuring they can comprehend real-world inputs.
Nvidia Company History
Nvidia was founded in 1993 by Jensen Huang, Chris Malachowsky and Curtis Preim. It began focused on 3D graphics, and in 1999, it introduced the world's first GPU, the GeForce 256, which revolutionised gaming graphics.
Over the years, Nvidia has expanded beyond gaming into AI, deep learning, and data centre technologies. It has also continued to enhance its GPUs. Two important years were 2012, when it powered the breakthrough AlexNet neural network, and in 2018 when it launched the first GPU capable of real-time ray tracing.
Today, Nvidia stands as a dominant force in the AI and semiconductor industries, with a market capitalisation exceeding US$3tn as of May 2025, making it the third most valuable company globally.
Future Outlook of Nvidia (NDQ: NVDA)
Nvidia's future outlook remains promising, driven by strong demand for its GPUs and AI solutions. The company's data centre segment, which includes AI-focused chips, is a major growth driver, supported by the rapid adoption of generative AI and large language models (LLMs) globally.
In its most recent earnings report for Q4 FY2025 (the quarter ended on January 31, 2025), Nvidia reported record quarterly revenue, with data centre sales reaching US$18.4bn, driven by strong demand for AI and cloud computing technologies.
Nvidia is also investing heavily in its Omniverse platform, designed to support real-time 3D collaboration, digital twin simulation, and industrial digitalisation across sectors like manufacturing, robotics, and infrastructure.
Despite its strong growth, Nvidia does face challenges, including geopolitical tensions, supply chain disruptions in semiconductors, and potential AI regulations.
Two in particular stand out. One is Trump's tariffs which cause volatility to the company's share price and the global economy. The second is competition. Investors were spooked back in January 2025 when DeepSeek was unveiled. NVDA shares shed US$465bn in a single day of off the back of it. DeepSeek is essentially a Chinese chatbot competitor to ChatGPT. It purports to have a chip that can be developed with US$5.6bn while the cost of training current models can be up to US$1bn.
Now, you have to take this claim with a grain of salt, but if this is even remotely true, AI solutions powered by this technology will be far more lucrative.
Is Nvidia a Good Stock to Buy?
Nvidia's stock has shown remarkable growth, reflecting its leadership in high-demand technology sectors. But the question is can it grow any more?
It is likely that it can. Its GPUs are critical for gaming, AI, and autonomous vehicles, providing multiple revenue streams. The company's P/E is 29.6x - not very expensive considering many of its peers are higher, and its PEG is 0.8x. And as of May 2025, analysts have a mean target price of US$163.21 - suggesting over 25% upside from current levels.
However, the company's size and position in the stock market shows potential volatility if market sentiment shifts. Remember how we mentioned above it lost >US$400bn in one day when DeepSeek was unveiled? The irony is that it was not even 15% of its total value.
But overall, we see Nvidia as having high growth potential.
Our Stock Analysis
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Frequently Asked Questions
Nvidia does not currently focus on high dividend payouts, as it reinvests its profits in R&D and strategic growth initiatives. Its dividend yield remains relatively low compared to other tech giants.