HOW TO BUY NVIDIA STOCK IN CANADA
In the realm of technological advancements, few companies have garnered as much attention and acclaim as NVIDIA Corporation. Renowned for its cutting-edge graphics processing units (GPUs), NVIDIA has etched its name in the annals of innovation. However, the convergence of AI and deep learning propelled the company to unprecedented heights in 2023, transforming it into an unrivalled force in the market. Spearheading this AI revolution were OpenAI's ChatGPT and Google's Bard, whose collaboration unlocked new horizons for NVIDIA and its stock performance.
With the demand for AI-driven solutions skyrocketing across industries, NVIDIA's stock experienced exponential growth. This article will provide a comprehensive guide on investing in NVIDIA stock, delving into the factors that contributed to its meteoric rise and offering insights into navigating the dynamic landscape of the AI revolution.
How to buy NVIDIA stock from Canada in 4 steps
Choose a broker to buy NVIDIA Stock (Make sure to choose a Broker that doesn't restrict clients from Canada since some of them do)
Open your brokerage account
Deposit money into your account
Buy NVIDIA stock
Let's describe each one of these steps further.
Step 1: Choose a broker to buy NVIDIA Stock
To buy NVIDIA shares, you should consider a broker that, ideally, excels in several of these features:
Low Trading commissions: A good broker charges low or null commissions when opening and closing a trade and offers tight spreads.
Regulated by a Credible Government Agency: A regulated broker is the best chance to avoid dealing with the wrong people. Therefore, if a broker claims they are regulated, do your diligence. For example, if they claim to be ruled by the UK's FCA, check if it's true. Generally, always review the broker's website's footer; that's where they usually make their regulatory claims.
Simple Registration Process: We don't want to hustle. However, do not trust a broker with no registration process.
Good Tenure in Business: Being in Canada means you might get approached by a company that becomes a fraud. This is a double-edged comment. A platform's tenure is not a safeguard that protects traders per se. However, tenure hints that a financial services provider in business for an extended time overcame several market ups and downs. Therefore, a provider's tenure of +10 years is a good sign. On the other side, avoid ancient financial institutions (like traditional banks); they will probably charge you more and lack the latest trading technology.
Free e-Learning Material: If you are a beginner trader, it is always a plus if a broker offers a good set of free e-learning materials. Aim to attend every conference, webinar, or free learning experience a broker provides. It will help you to get your trading knowledge up and running. Warning: The broker will try to sell you their products but separate the trash from the wheat.
A Good Set of Financial Instruments: Aim to open an account with a broker that offers many stocks trading in different stock exchanges. The bigger the offering, the better. We don't mean that you will end up trading leveraged futures on penny stocks, but instead, we imply that you will have different alternatives. You may start with NVIDIA stock but want to diversify later. Also, a broker with a vast product offering implies a more prominent company (Since it must comply with additional and different regulations, laws and directives).
Top Brokers to Trade NVIDIA Stock in Canada
Step 2: Open an account
Once you have chosen the Broker you feel is the best alternative, you must open a trading account. First, double-check if the Broker opens accounts to clients in Canada since a handful doesn't. This process will feel like opening an account with one of your phone apps.
Upload your personal documentation (Driver's License or Passport and a utility bill). In most brokers, the process will be straightforward and will be completed on the same day, although in some instances, it may take a couple of days to verify your identity and financial background.
Step 3: Deposit money into your account
Once you have your trading account ready, the next step is to make the first deposit of funds. The minimum is usually around USD 100-200, equivalent to Euros, Aussie Dollars or Sterling. Your account can be funded via credit card, debit card, bank transfer or Paypal, and Skrill or Neteller. However, be aware that the Broker might charge you an extra fee with some payment methods.
This deposit will provide liquidity in the account to buy the equivalent in NVIDIA shares. Adding funds is usually an instant process. In other words, you will have access to your capital when you authorize the operation (excepting a bank transfer, which could take up to 3 business days).
Step 4: Buy NVIDIA Stock
You are in the last step to being able to own NVIDIA Stock!
To do this, go to the Broker's search engine, write NVIDIA (or its trading symbol NVDA) and select it. Usually, a small box will appear that you must fill in:
The number of NVIDIA Shares you wish to buy.
The price at which you would like to execute the buy order if you would like the current price to drop a bit before you go in. Alternatively, you could go with the 'Market Order', which will execute the buy transaction at the current market's
Finally, execute the trade by clicking "Execute Trade", "Buy", or whatever message the order box displays. And, done. Congratulations, you now own NVIDIA Stock.
Further Step: Review your investment in NVIDIA regularly
Once the trade completes, it is now time to monitor it regularly. Be updated with NVIDIA's news and the price's technical movements.
You will need to decide your exit strategy. In other words, the triggers and period you want to keep the position open or closed. Are you a long-term investor? or a short-term trader? The previous questions are the primary consideration you have to have when thinking about your exit strategy. In the case of making a short-term trade, you will need to be aware of the news and technical movements daily, but if you want to take the long-term trade, you will need to be mindful of the essential info, such as quarterly results.
You can decide at any time what to do with your shares. Therefore, you can manage your trade and change it at any time at your convenience.
If, for example, you had planned to keep the stock for an extended period, but after a few days, the stock rises a high percentage, you can decide whether to sell them at that time or continue with your investment strategy and keep it longer.
Remember to set goals, for-profits and losses, and secure your capital. To do this, use the Take Profit and Stop Loss tools and modify them according to the target price you want to win or the maximum loss you want to bear.
Now that you've mastered the steps to buy NVIDIA stock, take a moment to learn more about the company.
Why invest in NVIDIA Stock?
Unlocking the Potential: The AI Revolution
The AI revolution, fueled by breakthroughs in deep learning and natural language processing, has propelled society into a new era of innovation. OpenAI's ChatGPT, an advanced language model, and Google's Bard, a speech synthesis system, played a pivotal role in driving this revolution. Their collaborative efforts seamlessly combined language understanding and generation capabilities, enabling novel applications across industries.
As the adoption of AI became pervasive, NVIDIA emerged as a critical enabler of this technological revolution. Initially designed for gaming and high-performance computing, its GPUs showcased an exceptional aptitude for accelerating AI workloads. The parallel processing capabilities of NVIDIA's GPUs proved instrumental in training and deploying deep neural networks, forming the backbone of AI applications in fields such as autonomous vehicles, healthcare, finance, and more.
The NVIDIA Advantage: A Catalyst for Growth
NVIDIA's remarkable growth in 2023 can be attributed to several factors that positioned the company at the forefront of the AI revolution. First and foremost, its dominance in the GPU market solidified its status as the go-to choice for AI researchers, data scientists, and enterprises worldwide. The company's relentless pursuit of innovation resulted in developing powerful GPUs explicitly tailored for AI workloads, setting NVIDIA apart from its competitors.
Furthermore, NVIDIA's strategic partnerships and collaborations, including its integration with OpenAI's ChatGPT and Google's Bard, strengthened its ecosystem and cemented its position as a leader in AI hardware. These synergistic endeavours enhanced the company's ability to provide comprehensive solutions, enabling users to harness AI's full potential and fueling demand for NVIDIA's products and services.
Investing in NVIDIA Stock: Navigating the AI Revolution
Investing in NVIDIA stock requires a keen understanding of the evolving AI landscape and its impact on the company's growth trajectory. This article will delve into essential considerations for potential investors, providing guidance on assessing NVIDIA's financial health, evaluating its competitive positioning, and gauging the long-term prospects of the AI market.
By examining NVIDIA's historical performance, analysing industry trends, and understanding the company's strategic initiatives, investors can make informed decisions to capitalise on the AI revolution through NVIDIA stock. Moreover, we will explore the risks and challenges associated with investing in this dynamic market, ensuring a balanced perspective for investors seeking to ride the wave of NVIDIA's success.
Pros and Cons of Buying NVIDIA Stock
Leading Position in AI and GPU Markets: NVIDIA dominates in the artificial intelligence (AI) and graphics processing unit (GPU) markets. Its GPUs are regarded as the industry standard for AI and deep learning applications, providing a competitive advantage and fueling sustained growth.
Growth Potential: The increasing demand for AI-driven technologies across various industries presents significant growth opportunities for NVIDIA. As AI proliferates, the company is well-positioned to capitalise on this trend and drive further expansion.
Strategic Partnerships: NVIDIA has formed strategic partnerships with key players in the tech industry, including major cloud providers, autonomous vehicle manufacturers, and software developers. These partnerships strengthen the company's ecosystem, foster innovation, and create additional revenue streams.
Diverse Revenue Streams: NVIDIA's revenue is derived from multiple sources, including gaming, data centre, professional visualisation, and automotive sectors. This diversification helps mitigate risks associated with reliance on a single market segment.
Strong Financial Performance: NVIDIA has a track record of delivering impressive financial results, consistently growing revenue and profitability. This stability and financial strength can instil confidence in investors seeking long-term stability.
Market Competition: The technology industry is highly competitive, and NVIDIA faces challenges from rival companies that offer competing GPU and AI solutions. Intense competition could impact the company's market share and profitability.
Cyclical Nature of the Gaming Industry: NVIDIA's gaming segment contributes significantly to its revenue. However, the gaming industry is cyclical and subject to fluctuations in consumer preferences, gaming console release cycles, and macroeconomic factors, which could affect NVIDIA's financial performance.
Technological Advancements: The technology landscape evolves rapidly, and innovations could disrupt or replace existing technologies, including GPUs. NVIDIA must continuously innovate to stay ahead of the curve and remain competitive.
Valuation Concerns: As NVIDIA's stock price has experienced significant growth, its valuation may concern some investors. High valuations could lead to increased volatility and potential market corrections.
Frequently Asked Questions
Is NVIDIA traded on the New York Stock Exchange?
NVIDIA trades in New York but not the NYSE; the Stock trades in the Nasdaq Exchange (Focused on Tech companies).
Can Canadian Investors Invest in US Stocks?
Of course, buying shares from American companies is not restricted to US citizens.
Are NVIDIA shares suitable for my portfolio?
Although NVIDIA is not the cheapest stock, there is a debate on both sides of the spectrum that NVIDIA will not sustain its current rate or be subject to a price and earnings contraction.
Does NVIDIA pay dividends to its shareholders?
NVIDIA pays a small dividend. The company's promise to investors has been built around the idea that as NVIDIA grows, consumes business in new markets, and generates significant profits; investors will become more excited about buying stock, increasing the company's value.
Is it a good idea to buy NVIDIA stock if I'm new to investing?
One of the rules of investing in the stock market says that you should buy what you know: choose shares of companies you understand and are familiar with. Picking stocks of companies with solid fundamentals or strong balance sheets is another rule. And, of course, diversifying your investments or making sure you don't put all your eggs in one stock is also a hypothesis we should follow.
Which is the best broker to invest in NVIDIA stock?
The previous list that we added to this article gives you several options. They are all good alternatives. Decide based on your preferences.
AvaTrade is a renowned Irish brokerage firm offering exceptional stock trading experience for investors looking to tap into the global markets. With its user-friendly platform and extensive range of tradable stocks, AvaTrade stands out as a top choice for stock trading enthusiasts.
One of the key highlights of AvaTrade's stock trading service is its vast selection of global stocks. From major exchanges such as the New York Stock Exchange (NYSE) to popular international markets like the London Stock Exchange (LSE), AvaTrade provides access to a diverse range of stocks across various sectors and regions. This enables traders to build a diversified, well-rounded portfolio tailored to their investment goals.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.