May 19, 2024

How to Buy NVIDIA Shares In The UK - 2024 Guide

George MouratidisMay 19, 2024

If you're considering buying Nvidia stock, you're looking at a company at the forefront of technological innovation.

Over the past two years, Nvidia has expanded its influence in AI, gaming, and data centres. Led by CEO Jensen Huang, Nvidia has achieved groundbreaking advancements in GPU technology, including the release of the powerful RTX 30 series and the new RTX 40 series. The company has also made strategic acquisitions, such as the purchase of ARM, further solidifying its position as a leader in the tech industry. Nvidia's technologies power everything from cutting-edge video games to complex AI applications. In this article, I’ll guide you through the steps to buy Nvidia stock and explore why this investment could be a smart move for your portfolio, potentially opening up exciting opportunities for you.

Buying the Nvidia stock is a straightforward process. Contrary to what you might think, there's no need to contact a bank or financial advisor. Simply sign up for an investment platform and purchase the Nvidia stock directly. If you're new to investing or unfamiliar with buying stocks, consider using an investing app. These user-friendly smartphone apps make buying stocks and ETFs a breeze.

Quick Guide on How to Buy Nvidia Stock

  • Step 1: Select an investment platform that offers access to US stocks like Wealthyhood,

  • Step 2: Register and KYC your investment account.

  • Step 3: Complete the W-8BEN form to ensure correct taxation on US stocks.

  • Step 4: Connect your bank account and deposit funds.

  • Step 5: Search for Nvidia (NVDA) stock.

  • Step 6: Select the amount of Nvidia shares you would like to buy and click purchase.

Buy NVIDIA Shares

And that’s it. You are now officially an Nvidia investor. You can sell your shares any time you want, withdraw them to your bank account, or swap them for another stock.

How to Buy Nvidia Shares In the UK - A Detailed Guide

1. Signup for an Investing Platform

As I mentioned earlier, there are multiple ways to buy stocks in the UK, including robo-advisors and micro-investing apps, which I have reviewed previously.

Wealthyhood is one of them, and it’s positioned as the best one for long-term investors who are looking for professional investing tools without a complicated user experience. It also offers commission-free investing for both stocks and ETFs, so it’s difficult not to recommend it over the competitors.

Buy NVIDIA Shares

2. Complete the W - 8BEN Form

The W-8BEN Form is a mandatory step for all UK investors who want to invest in US stocks.

If you use Wealthyhood to buy Nvidia shares in the UK, then this step is facilitated automatically by Wealthyhood.

This form serves as a declaration of one's foreign status and eligibility for these benefits, ensuring compliance with U.S. tax laws while lowering the tax burden on U.S.-sourced income.

3. Deposit Money to Your Account

Fund

Before buying Nvidia stock, you’ll first have to deposit money in your investing account. This is pretty easy: You just have to select Top-Up under the “Account” tab on the app. Then, you’ll be prompted to select the amount you’d like to transfer and then transfer money from your bank account.

4. Select The Nvidia Stock

Once you have funded your account, you can return to "Target". In the target portfolio, you can select how to structure your portfolio. Type Nvidia in the search bar and select the Nvidia stock.

5. Construct your portfolio

Construct

Constructing your portfolio involves selecting a mix of investments that align with your long-term goals and risk tolerance.

If you want to buy only Nvidia shares, you should select Nvidia and apply 100% allocation of your portfolio. However, you can also include more stocks to diversify your portfolio and minimise your risk.

This step is about diversification, balancing stocks, bonds, real estate, and other assets to minimise risk while aiming for a desired return. Regular rebalancing ensures your portfolio stays on track.

6. Set Up a recurring monthly investment

Setting up a recurring monthly investment is a powerful strategy to grow your wealth over time. It involves automatically investing a fixed amount of money into your portfolio every month, regardless of market conditions. This approach, known as dollar-cost averaging, can reduce the impact of volatility and help build investment discipline.

7. Monitor your Nvidia Investment

If you’ve read our guide on buying Tesla shares you know that monitoring your investments is a critical aspect of managing your portfolio. It involves regularly reviewing your investment performance and adjusting as needed to align with your financial goals and market conditions. This may include rebalancing your portfolio, reinvesting dividends, or changing your investment strategy based on life changes.

tesla

8. Calculate and Pay your Taxes

As we’ve highlighted in our previous guides on purchasing Amazon shares and Apple Shares, completing your taxes is a crucial yearly responsibility for UK investors. This involves accurately reporting investment income and capital gains to HM Revenue and Customs (HMRC).

To maximize tax efficiency, it's important to understand your tax allowances, including the Capital Gains Tax allowance and the Dividend Allowance. Leveraging tax-advantaged accounts like ISAs and pensions can help minimize your tax liability and enhance the growth of your investments. Staying updated on tax changes and consulting with a professional, if needed, can ensure compliance and optimize your financial strategy.

Buy NVIDIA Shares

In the future, if you decide to diversify your portfolio by buying Facebook shares, Disney shares or Google stocks, then you can follow the same process. However, you'll have to make a separate analysis of these stocks as they present different fundamentals. Making informed decisions is key to success in the investing world.

Please keep in mind that investing involves risks. I am not a financial advisor, and this article was created based on my own research. Feel free to do your due diligence before buying a company stock. You can also read our guide on how to invest in the stock market to understand better the strategies and processes involved when buying shares in a company. If you would like to discuss more on the Stock Market feel free to drop me an email at george@wealthyhood.com or connect with me through LinkedIn.

Read also: How to buy Netflix shares

Nvidia Q1 2025 Reports

NVIDIA announced strong financial results for the first quarter of fiscal 2025, driven by record revenue and significant growth across multiple sectors. Key highlights include:

  • Revenue: $26.0 billion, up 18% from Q4 FY24 and 262% from Q1 FY24

  • Net Income: $14.88 billion, up 21% from Q4 FY24 and 628% from Q1 FY24

  • GAAP EPS: $5.98, up 21% from Q4 FY24 and 629% from Q1 FY24

  • Data Center Revenue: $22.6 billion, up 23% from Q4 FY24 and 427% from Q1 FY24

Financial Summary Table

Metric

Q1 FY25

Q4 FY24

Q1 FY24

Q/Q Change

Y/Y Change

Revenue

$26.04B

$22.10B

$7.19B

+18%

+262%

Gross Margin

78.4%

76.0%

64.6%

+2.4 pts

+13.8 pts

Operating Expenses

$3.50B

$3.18B

$2.51B

+10%

+39%

Operating Income

$16.91B

$13.62B

$2.14B

+24%

+690%

Net Income

$14.88B

$12.29B

$2.04B

+21%

+628%

Diluted EPS

$5.98

$4.93

$0.82

+21%

+629%

Non-GAAP Gross Margin

78.9%

76.7%

66.8%

+2.2 pts

+12.1 pts

Non-GAAP Operating Expenses

$2.50B

$2.21B

$1.75B

+13%

+43%

Non-GAAP Operating Income

$18.06B

$14.75B

$3.05B

+22%

+492%

Non-GAAP Net Income

$15.24B

$12.84B

$2.71B

+19%

+462%

Non-GAAP Diluted EPS

$6.12

$5.16

$1.09

+19%

+461%

Key Financial Terms Explained

  • GAAP (Generally Accepted Accounting Principles): Standard framework of guidelines for financial accounting used in the U.S., ensuring consistency and comparability of financial statements.

  • Non-GAAP: Financial measures that exclude certain items, such as stock-based compensation, to provide a clearer picture of a company's core operating performance.

  • Revenue: The total income generated by the sale of goods or services related to the company's primary operations.

  • Gross Margin: The difference between revenue and cost of goods sold (COGS), expressed as a percentage of revenue. It indicates the efficiency of production.

  • Operating Expenses: The costs required to run a company's core business operations, including research and development, and selling, general, and administrative expenses.

  • Operating Income: The profit realized from a business's core operations, calculated as gross profit minus operating expenses.

  • Net Income: The total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.

  • Earnings Per Share (EPS): A portion of a company's profit allocated to each outstanding share of common stock, indicating a company's profitability.

  • Forward Stock Split: An increase in the number of a company’s shares, with the share price adjusted proportionately, making the stock more affordable to investors.

Nvidia has a consistent record of going above and beyond its quarterly guidance and providing optimistic forecasts. This trend will likely continue in the upcoming earnings report, released in May 2024. The focus remains on Nvidia’s data centre business, which is central to its growth, especially in the AI chip sector. Supply constraints are currently the main limiting factor for its AI chip production. The efforts of Nvidia's manufacturing partners to meet the demand for AI GPUs will be crucial to the company’s long-term valuation.

However, despite the positive outlook, uncertainties remain. Key questions include the pace of data centre capital expenditures in the future, particularly as cloud vendors continue to invest heavily in AI. Beyond major cloud providers, spending by enterprises in sectors like software, finance, and healthcare is also critical for Nvidia’s growth.

The AI accelerator market’s size is another focal point. For instance, Advanced Micro Devices (AMD) has increased its forecast for the 2027 total addressable market to $400 billion, up from $150 billion. This suggests considerable competitor growth in the GPU market, where Nvidia is the leader.

Buy NVIDIA Shares

Building An Investment Thesis: Is Nvidia Stock a Buy, Sell or Hold?

Nvidia Corporation (NVDA) was a familiar name in the PC gaming world long before its stock market surge. Nvidia is known for its advancements in graphics processing units (GPUs) and artificial intelligence (AI) technologies. Following its explosive growth in the last five years, investors are watching Nvidia's stock, trying to decipher whether it’s the right time to buy, hold, or sell.

Nvidia (NVDA) has advanced its efforts in robotics through a partnership with Teradyne (TER) while they continue to develop their own AI projects, like the NVIDIA Isaac robotics platform. We collected perspectives from market analysts and recent comments from industry experts to provide a complete outlook on Nvidia's stock performance and potential. Nvidia is also a cash-rich company, with $26 billion in cash and investments as of January 2024, against $9.7 billion in debt.

Recent Market Sentiment

Analysts maintain a bullish outlook on Nvidia, largely due to its dominant position in the AI hardware market. Their GPUs are essential for AI applications, rapidly growing in various industries such as healthcare, autonomous driving, and data centers. On April 24, Nvidia agreed to acquire Run.ai for $700 million. Run.ai enhances the efficiency of AI tools for developers and integrates with Nvidia’s Cloud AI product, which offers businesses "instant access to an AI supercomputer from a browser."

Trading decisions around earnings reports are inherently risky, and investors might question whether to hold onto their shares or take profits. Nvidia’s stock holds a D Accumulation/Distribution Rating, an improvement from an E rating two weeks ago, and it is also featured on IBD SwingTrader.

Analysts Remain Bullish For Nvidia Stock

Following its March AI developers event, UBS analyst raised Nvidia’s target price to 1,100 from 800, maintaining a buy rating. He noted, "We believe Nvidia sits on the cusp of an entirely new wave of demand from global enterprises and sovereigns."

Truist analyst William Stein also raised his price target to 1,177 from 911, citing stronger demand in 2024 and 2025 for Nvidia’s chips. HSBC analysts increased their target to 1,050 from 880, maintaining a buy rating. Bank of America raised its target to 1,100 from 925.

For the quarter ending in April, analysts expect earnings of $5.22 per share on sales of $24.4 billion, which would translate to a 473% increase in earnings and a 242% rise in sales year over year.

Another analyst noted, "Firing on all cylinders. Still expensive at 190 times earnings, but the growth prospects justify the valuation to some extent." This suggests that while Nvidia's stock may seem overvalued based on traditional metrics, its growth potential in emerging technologies like AI and machine learning could warrant this high valuation.

Data Center and AI GPU Business

Nvidia’s prospects in the data centre (DC) and AI GPU businesses are important behind its rising stock price. The DC segment has seen exponential growth, with revenues increasing from $3 billion in fiscal 2020 to $47.5 billion in fiscal 2024. This growth is expected to continue as supply constraints ease. For fiscal 2025, Nvidia forecasts DC revenue to rise by 113% to $101 billion. Beyond this, a compound annual growth rate of 10% over the next three years is anticipated, considering potential inventory corrections or pauses in AI demand.

What is the Fair Value of Nvidia?

According to Morningstar, Nvidia's stock is fairly valued, with a long-term fair value estimate of $910 per share, equating to an equity value of around $2.2 trillion. This estimate reflects a fiscal 2025 price/adjusted earnings multiple of 35 times and a fiscal 2026 forward price/adjusted earnings multiple of 26 times.

Is Nvidia a Long-Term Buy?

To understand if Nvidia is a long term buy we had to look into what analysts say just like we did on our how to buy Google stock. Analysts highly rate Nvidia for its growth potential, with a Growth Style Score of A and a VGM (Value, Growth, and Momentum) Score of B. For fiscal 2025, Nvidia's bottom line is expected to rise by 84.7% year over year, with Wall Street projecting a 74.1% increase in its top-line revenue.

Analyst confidence in Nvidia’s future performance is vital. Six analysts have raised their earnings estimates for fiscal 2025 within the last 60 days, with the Zacks Consensus Estimate increasing by $0.79 to $23.94 per share. Nvidia also has an average earnings surge of 20.2%, consistently exceeding market expectations. In addition, Nvidia’s financial position further strengthens the “long-term buy” hypothesis. The company has achieved cash flow growth of 50.2% and is expected to report an expansion of 303.7% in 2025.

As AI and HPC applications proliferate across industries, Nvidia’s GPUs are decisive components in data centres, autonomous vehicles, and various AI-driven technologies. The company's early moves in AI innovation have positioned it as a leader in this sector.

What Will Nvidia's Stock Price Be in 5 Years?

Based on consensus estimates, Nvidia's earnings are expected to grow at an annual rate of just over 35%. From a fiscal 2024 earnings base of $12.96 per share, this could rise to $58.11 per share by 2029.

Assuming Nvidia maintains its five-year average forward earnings multiple of 39, the stock price could reach $2,266 per share, representing a 162% increase from current levels. This projection is based on Nvidia's position in the AI chip market, strong pricing power, and expected demand across all semiconductor-hungry sectors.

However, these estimates depend on Nvidia's ability to sustain high growth rates amidst competition and potential market fluctuations. Investors should consider these factors and their risk tolerance when evaluating Nvidia as a long-term investment.

  • Projected Earnings Growth: 35% annual increase

  • Expected EPS in 2029: $58.11

  • Potential Stock Price in 2029: ~$2,266 per share

  • Upside Potential: 162% from current levels

Please keep in mind that investing involves risks. I am not a financial advisor, and this article was created based on my own research. Feel free to do your due diligence before buying a company stock. You can also read our guide on how to invest in the stock market to understand better the strategies and processes involved when buying shares in a company. If you would like to discuss the Stock Market more, feel free to email me at g.mouratidis@wealthyhood.com or connect with me through LinkedIn.

Buy NVIDIA Shares

Is It Too Late to Buy Nvidia?

Nvidia has been on an unprecedented upward trend for the past five years, having risen more than 2300%. With Nvidia (NVDA) set to release its first-quarter earnings report, many investors wonder if now is the right time to buy its stock. Despite the stock being at an all-time high, things are looking even better for the GPU maker, and there are several reasons investing in Nvidia, even at this stage, might be a smart move. Let’s look at some of them below.

AI Demand Drives Growth

Recent developments in the AI space indicate that Nvidia's upcoming results could exceed expectations. Nvidia has been a leader in AI chips, and the ongoing demand for these products is robust. Key partners and industry indicators suggest that Nvidia's position remains strong:

  • TSMC Partnership: Nvidia relies on Taiwan Semiconductor Manufacturing (TSMC)

    for chip production. TSMC's first-quarter revenue growth of 16.5% year-over-year and an increase in 5nm chip revenue (which includes Nvidia’s H100 processors) highlights strong demand. TSMC's management has described AI-powered demand as "insatiable," suggesting Nvidia's continued strong performance in AI chip sales.

  • AI Server Demand: Companies like Super Micro Computer (Supermicro) have reported tripled revenues due to AI server demand. This indicates that data centres are investing heavily in AI infrastructure, which directly benefits Nvidia, controlling over 90% of the AI chip market.

Positive Competitor Signals

Even Nvidia’s competitors are experiencing increased demand for AI chips, further validating the market's growth. Although this sounds counter-intuitive, this is a good thing for the company. AMD has raised its 2024 AI chip sales forecast from $3.5 billion to $4 billion, while Intel expects a new revenue stream from its new Gaudi 3 AI accelerator. Forecasts from competitors point to a booming AI chip market in which Nvidia is poised as an undisputed leader.

Strong Market Position and Outlook

Nvidia’s AI revenue is expected to soar. According to market research firm Omdia, it is projected to reach $87 billion in 2024, up from $34 billion last year. The AI chip market's annual growth rate of 30% over the next decade gives Nvidia a solid positioning and exciting future potential. Goldman Sachs has increased its price target for Nvidia to $1,100, hinting at a 22% upside from current levels.

Attractive Valuation: Is Nvidia Overvalued or Undervalued

Despite a rally in the stock price, Nvidia's stock valuation remains surprisingly compelling. Nvidia’s earnings multiple, while high, has decreased thanks to substantial earnings growth. The stock's forward earnings multiple of 37 is below its five-year average of 39, indicating it is still relatively undervalued.

Meanwhile, Nvidia's price/earnings-to-growth (PEG) ratio of 0.13 suggests the stock is undervalued, considering its growth potential. A PEG ratio below one typically indicates a stock is trading below its intrinsic value.

The Bear Case: Why You Shouldn’t Buy Nvidia

Investing in Nvidia might be more complicated than it seems. At a surface level, the bull case is very straightforward, assuming that AI is the future. With that in mind, investing in AI-related companies like Nvidia is automatically beneficial. This has been true to date, given Nvidia’s stock performance. However, the stock market does not always work in such simple ways.

Therefore, deeper analysis might be needed to determine whether this is a good reason to invest in Nvidia. My second-level thinking questions whether the current market price accurately reflects future growth and whether Nvidia can sustain its growth to justify its high valuation. With Nvidia’s stock price currently around $940, investors must consider if this price appropriately factors in future earnings and market conditions.

Also, let’s not forget there are considerable risks. Nvidia faces substantial competition, and its ability to manage massive growth while maintaining technological leadership is crucial. In addition, supply chain disruptions, like those from geopolitical tensions in Taiwan, where TSMC is based, could impact production.

The stock’s volatility might also not fit all investment profiles. Over the past year, NVIDIA's stock has experienced fluctuations, ranging from a low of $297.96 to a high of $974. This wide range indicates considerable price instability. NVIDIA’s “beta” (β) indicator stands at 1.75, compared to the NASDAQ average beta of 1. This elevated beta value implies that NVIDIA's stock is 75% more volatile than the market average.

Finally, sustaining high growth rates will become increasingly challenging ​as Nvidia grows, potentially stabilising the stock price. This could make it less attractive for those who get into the action now, expecting an explosive appreciation.

How To Buy Nvidia Shares In the UK: Frequently Asked Questions

This section addresses common questions on how to buy Nvidia shares in the UK.

How High Can Nvidia Stock Go?

Despite its rapid growth, Nvidia's stock trades at 33 times forward earnings. That is slightly above the S&P 500 average of 28. Given its financial health and strategic initiatives, Nvidia has a lot of upside potential, even though it has seen a 265% year-over-year revenue increase to $22.1 billion and a 76% gross margin. Analysts predict continued innovation and market expansion could push Nvidia's stock price much higher over the next five years.

Of course, you should be aware that past performance cannot guarantee future results.

Is Nvidia Listed On the London Stock Exchange?

Yes, Nvidia is listed on the London Stock Exchange under the ticker symbol 0R1I.L.

How To Buy US Stocks From the UK

Thanks to modern-day investment platforms, buying US stocks from the UK is a very easy process in 2024. Select a UK-based brokerage that offers access to US stock markets (popular platforms include Wealthyhood, Hargreaves Lansdown, AJ Bell, Freetrade, and IG). Compare their fees, typically commission fees per trade and foreign exchange (FX) fees for converting GBP to USD​.

Once you've chosen a broker, open a stocks and shares brokerage account. You might consider opening a tax wrapper account, such as a Stocks and Shares ISA, which can protect your investments from capital gains tax​ if you’re after long-term investments.

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