Buy Nvidia shares in New Zealand
Today's world is unimaginable without networking technology. We buy things online, we do research online, we search for all the information we need, we make acquaintances, and we simply communicate through the World Wide Web.
The investment system has also progressed. Whereas previously the question of how and where to invest money was only popular among influential investors with considerable capital, nowadays any average citizen of the world can get involved in investing. The modern forms, strategies, methods, approaches and tools of investing are very different from the classic ones. There is a new opportunity to do all transactions online and, as a consequence, a new trend in investing has emerged - online trading. You no longer have to physically visit different financial institutions in order to invest your money in one asset or another. Just make yourself comfortable with your laptop (or your mobile phone) wherever you want, at whatever time you want, and do all your trading online.
Of course, the goals are still the same - to make as much profit as possible. Therefore, when it comes to investing in a financial instrument such as shares, people prefer large and well-known companies that have a good reputation in the market, good financial performance and further prospects.
In this review, we will look at the prospects and opportunities of investing in stocks of the world leader in graphics processors and video adapters, Nvidia Corporation in New Zealand.
The year 1999 saw a dramatic growth in the computer games market, fundamentally changing modern computer graphics and parallel computing. More recently, the use of GPUs to accelerate deep learning algorithms has spurred the emergence of modern artificial intelligence. This marks the beginning of a new era of computing in which the GPU acts as the "brain" of computers, robots and drones, capable of sensing and interacting with our world.
NVIDIA is a pioneer in the field of supercomputing, which is favoured by the world's most demanding computing users: scientists, designers, artists, and gamers. With the continued need for better 3D graphics and the growing gaming market, NVIDIA has turned the GPU into the very brains of the computer, paving the way for numerous innovations at the intersection of virtual reality and artificial intelligence.
Founded in 1993, the company had more than 13,000 employees by the end of 2020, operating out of more than 50 facilities around the world. The company is headquartered in Santa Clara, California (USA).
Today, Nvidia Corporation is the clear global market leader in visual computing.
The company's graphics processors act as the "visual cortex" of modern computers. The company's work opens up a wide field for new research, creative ingenuity and scientific discovery. Its results underpin inventions once considered science fiction, such as artificial intelligence and unmanned cars.
Products created and engineered by these American corporations are sold under the brand names: nForce, GeForce, ION, Tesla, Quadro and Tegra.
The most prominent subsidiaries of NVIDIA Corporation are:
- 3dfx Interactive, which specialises in the development of graphics processors.
- UK-based Icera Inc., which develops chipsets for mobile devices, embedded modems and other devices for PCs, notebooks and smartphones.
- Mental Images GmbH (Germany), now known as Nvidia Advanced Rendering Center (NVIDIA ARC GmbH), which specialises in 3D modeling technologies.
- In addition, a subsidiary of Nvidia (United Kingdom) is active in Europe. This company provides support to users who use graphics cards and other products of the U.S. corporation, as well as is engaged in active promotion of electronic products sold under brands owned by NVIDIA Corporation.
Its continued success and growth has attracted potential investors.
How to invest in Nvidia shares in New Zealand?
The initial public offering of the US corporation on the NASDAQ stock exchange took place at the beginning of 1999. Today, the issuer's securities on this exchange can be found under the ticker symbol NVDA.
In addition, the shares can be traded at Frankfurt, Hamburg, Dusseldorf, Stuttgart, Berlin, Munich, London and other European exchanges. Securities are also traded on the over-the-counter Tradegate Exchange.
There is currently a way to buy Nvidia shares instantly. Many brokers provide the opportunity to trade with this tool online. Trading via a personal computer allows even novice traders with a small deposit to make a profit. All you have to do is choose the right broker: study the requirements for trading, visit traders' forums and read reviews of their current trading activity.
The first thing you need to do to invest in Nvidia shares in New Zealand is to choose the right broker. A broker is your intermediary in the market, so you need to choose one responsibly. First of all, you need to find out whether the agent you choose has a licence to conduct brokerage activities, as well as all the necessary permits required by the applicable laws of the country.
In addition to having a licence, check the following questions:
- whether the broker has a professional website with all the necessary information;
- whether the transaction limits and service charges are suitable for you;
- what is the functionality of the online platform;
- how quickly your request can be completed;
- convenience of deposits and withdrawals;
- whether there is a mobile version of the platform;
- whether there is 24/7 technical support.
An online trading platform will be provided to you by a brokerage company to enable you to conduct investment transactions over the Internet. An online trading platform is a fully digital solution, the software with which you will have access to online investment transactions. You can use a free demo account to learn how the platform works when choosing a broker. Once you have decided on a broker, register with the online trading platform which that broker makes available.
Dividends on Nvidia shares are a portion of past profits that the company distributes to its shareholder-owners. The company may, but is not obliged to, pay them.
The methodology for calculating dividends is set out in the Dividend Policy or in the Articles of Association. The clearer and more transparent the calculation principle, the more investors like the company.
In the simplest sense, a dividend stock investment is when you buy a security and begin to receive a steady dividend payment after a short period.
Paying dividends is not an obligation but a right of the company. The board of directors decides on the fact and amount of the payment. It is important to understand that dividends are usually paid out of profits. Yes, there are companies which at some point are loss-making but still continue to pay dividends - but this is more of an exception.
A company can suspend dividend payments by allocating profits to business development.
Nvidia pays a dividend of 1.97% p.a., which is paid out quarterly.
Another and very popular investment method is derivatives trading. CFD trading is a method of trading in which a person enters into a contract with a broker instead of buying the underlying asset directly. CFD stands for Contract for Difference. By trading CFDs, you get to profit from every market movement. If you firmly believe that the price of an asset will go up, you open a buy position, often referred to as a long position.
If you believe the price of an asset will fall, you open a sell position, often referred to as a short position.
The actual market situation not only affects whether you make a profit or loss, but also determines how much.
For example, if you think a certain market will go up, you buy CFDs to trade them.
When trading CFDs, most online platforms allow you to use a multiplier, that is, a leverage, which you can use to increase the amount of your trade. Remember that apart from the fact that using a multiplier is not technically difficult, this procedure is fraught with the risk of losing a large sum of money. So make sure you have a good understanding of how the multiplier function works.
How to buy Nvidia shares in New Zealand?
So, once you have chosen a reliable broker and decided on an investment strategy, you need to register on the online investment platform. In the first step, you will need to enter simple basic details, such as your username and e-mail address. Later on, when you need to withdraw money from your account, you will have to go through a more detailed and complex security check.
After logging in you will have access to a demo account and a live account. A demo account is a dummy account which you can use to make test transactions on the platform to see how it works. Study the platform and all the available tools carefully before you move on to funding your real account.
A live account means real trades and real money. You must deposit a certain amount into your account to activate it. The minimum starting amount on most online investment platforms is low, at a few dollars. Deposits can be made online with a bank card or via a payment system.
Withdrawals are usually made using the same methods as deposits.
How to start investing in Nvidia shares in New Zealand?
So, to summarise the above, let's work out where to start investing:
- find a reliable online broker;
- register on an online investment trading platform;
- become familiar with the platform and the tools it provides;
- try trading with a free demo account;
- research the company you would like to invest in.
Investing is quite a complicated procedure. To be able to invest effectively, creating a profit rather than a loss, it is not enough to simply learn how the stock market works. It is worth remembering that a company's share price depends on a number of external factors that need to be taken into account when investing, such as the political scenario in the country, international economic relations and the country's financial laws, the international market, international political trends, etc. It is also worth paying attention to what kind of product or service the company creates, whether these areas are promising, whether the company intends to expand further or, on the contrary, whether it is about to close down. It makes sense to keep an eye out for information about companies in which you would like to invest. Only reliable sources of information should be used when researching information.
An online trading platform gives you an exceptional opportunity to learn about investing from the comfort of your own home and to become an active participant in online trading. The lessons available in video format on most quality platforms, as well as a free demo account, will help you learn the theoretical basics and try out different investment options and trading methods in practice. Perseverance in learning, as well as caution, consistency and attentiveness will help you succeed in this field.
When it comes to investing in Nvidia stocks in New Zealand, it is a very good choice - the company is very promising and financially successful.
Open a demo account today and see for yourself all the advantages of trading online.