NVIDIA is a well-known company and is seen as the driving force in the movement toward things like cloud gaming and self-driving cars. The company is the pioneer of graphics processing units (GPUs) and experienced major gains at the beginning of the coronavirus pandemic as people were forced to stay home. With NVIDIA considered to be one of the top companies with the largest gains in 2020, the question an investor may have is whether now is the time to invest or run the other way. We’ve taken a closer look at NVIDIA’s stock futures and how investing in NVIDIA can impact your portfolio.
How COVID-19 Impacted NVIDIA
The COVID-19 pandemic positively impacted NVIDIA, especially in the early stages when stay-at-home orders were mandated worldwide. Spending on digital games set records in March and April, and NVIDIA was in a prime position to take advantage of its GPUs. But what some investors don’t know is the GPUs by NVIDIA also power some of the largest cloud computing giants in the industry, including Microsoft and Amazon. So while COVID-19 gave NVIDIA a welcomed spike, they have also maintained stability since then.
Important Fundamentals Of Investing In NVIDIA
The average investor may look at NVIDIA’s stock price and turn to other options immediately. The price is not inexpensive by any means, but that doesn’t mean it isn’t a good fit for some investors. Even with the high valuation, financial experts and analysts believe NVIDIA’s sales will continue growing through 2020 and beyond. These lofty predictions in stock futures may seem unrealistic to some people, but if you look at NVIDIA’s history, the company has been consistent in outperforming expectations. So from a basic sense, an investor interested in NVIDIA should proceed with caution and understand the high valuation could come crashing down at any moment, or they could continue to outperform lofty expectations.
Is NVIDIA A Solid Investment Option Now Or In The Future?
Most financial experts believe NVIDIA is an option not suitable for the average investor today. The high valuation is typically enough to deter investors and force them to look at other reasonable options. On the other hand, investors with plenty of capital may find NVIDIA to be a solid option due to the positive trends the company has displayed, along with the potential for even more growth in the future. There’s no doubting NVIDIA’s stability as a whole, so the main concern for an investor is whether the high valuation is worth the money.
Stock Investing Info helps investors find financial success. We look closely at the markets and trends, so we are well-equipped to answer any questions our clients may have. Companies like NVIDIA offer the potential for high returns, but also come with a significant number of risks. The framework of investing in NVIDIA is a bit cloudy since it depends on your current financial situation, portfolio investments, and future goals. If you have any interest in learning more about NVIDIA stock, contact us and we would be happy to bring some clarity to the situation for you.