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Blockchain technology has become the talk of the town as various companies in different industries look to incorporate it. Blockchain stocks have experienced growth over the last couple of years, especially after the Bitcoin bubble in 2018.
During the year, Bitcoin and various other crypto coins saw a massive surge in their value. Subsequently, it caused the demand for graphic cards to rise, and companies like NVIDIA Corporation were successful. NVIDIA Corporation is a big name that many investors keep to diversify their portfolios.
It operates in the computer software, semiconductors AI, GPUs, and hardware industry. The company manufactures a wide range of products, including:
- Central processing units
- Collaborative software
- Data processing units
- Graphics processing units
- Tablet computers
- TV accessories
The sales of GPUs have been a contributing factor in helping the company’s share value to increase. Miners use GPUs to mint new digital coins and make transactions on blockchain technology. The sales have slowed for Nvidia’s CMP chips used for crypto mining, but it still gives the company more than $100 million in revenue every quarter.
NVIDIA Corporation Statistical Overview
NVIDIA Stock 2022
The share prices of NVIDIA Corporation remained less volatile in the first couple of months of 2022. However, it witnessed a sharp fall in March for two primary reasons:
- Fined by the SEC due to failure to report the crypto mining revenue
- Shares sell-off in the tech industry
The SEC has slapped a fine of $5.5 million that NVIDIA has agreed to pay. NVIDIA Corporation failed to tell investors about the increase in demand for graphics cards by miners, resulting in this penalty. Also, the report highlights how the company failed to show revenue growth in the two quarters of 2018 due to an increase in crypto mining.
Another factor for the fall in share values over the last couple of months is the low sales of the CMP chips. The financial report at the end of the fourth quarter of 2021 showed that the company’s CMP chips sales declined by more than 70%. The fall in sales is primarily due to the ‘crypto winter.’
Although experts forecasted that the conditions will look the same for the next six months as the top crypto coins – Bitcoin and Ether – continue to trade low, a stable condition only lasted until the last days in April. By April, 25, the price dipped to below the 200 mark to close at $199.02.
And though it dipped here and there, the price remained relatively stable below 200 throughout the year. As at now, NVIDIA stock price stands at $175.35 and it has maintained above the 150 mark since Dec, 1. If nothing significant happens to change the share price, the lowest price of $160 forecasted by experts could be realized for the remainder of the year.
NVIDIA Stock 2021
The share prices of NVIDIA Corporation increased steadily from Jan 2021 to Nov 2021. It saw a surge from March 2021 after the company announced CMPs for crypto miners. The company aimed to jump on the rising demand for graphics cards due to a rise in crypto coins’ values.
Additionally, the overall growth in the crypto coin’s valuation pursued investors to make further investments in the blockchain sector. As a result, the NVIDIA Corporation’s share price increased from $150 at the start of 2021 to $300 by November.
However, it soon witnessed a decline in stock price after November 2021, and the bearish trend continued for the next year before going up in March 2022. Additionally, the global supply chain issues also caused NVIDIA to fall short of its goals to deliver the CMP chips on time.
NVIDIA Stock 2020
2020 has been a tough year for many companies in various sectors, including NVIDIA. The company’s share price saw a huge impact when the first lockdown was announced. Its share price fell from $71 in the first week of February to $53 by the 16th of March, 2020.
Nevertheless, the growth of NVIDIA was stagnating, and it reached the value of $124 by the first week of December 2020. The primary reason for the increase in share value is the demand for the company’s gaming GPUs.
The lockdown measures increased the global demand for gaming hardware as people needed to keep themselves busy when staying at home. Since NVIDIA primarily focuses on and caters to the gaming industry, it was able to benefit from the rising demand for its GPUs.
Another reason for the rising share value was the increase in revenue in the second quarter of 2020. The company saw an increase of more than 65% in the Q2 of 2020. Consequently, it further spiked the company’s share price in the coming months.
NVIDIA Stock 2019
After a fall in its value, NVIDIA’s share saw a massive gain and soared by 75%. The impressive financial reports for the last two quarters helped the company gain investors’ confidence. It showed staggering growth in the company’s revenue from the previous fiscal second and third quarters.
Investors found it worthy enough to put their money in the shares to reap amazing benefits in the future. The share price increased from $33 in June 2019 to around $60 by the end of 2019.
NVIDIA Stock 2018
2018 saw one of the worst drops in the price of NVIDIA Corporation. It plunged more than 30% by the end of the year after seeing massive gains in 2016 and 2017. The company’s share value was around $55 at the start of the year, and it fell to $40 by December 2018. There are two major reasons for this fall.
Firstly, the company saw a rapid surge as the cryptocurrencies saw a huge rise in their value. However, the bubble burst dragged down the price of shares for various companies in blockchain, including NVIDIA Corporation. Therefore, the share price saw a significant loss in its value.
Other reasons for the fall in the stock value of NVIDIA Corporation, except for the crypto bubble bursting, were:
- Trade war with China
- Slow global economic growth
- Fall in demand for semiconductors
- Anxieties about rising interest rates
- A massive market sell-off at the beginning of the fourth quarter impacted the valued tech stocks
These factors caused NVIDIA’s share value to drop by 25% in October 2018.
NVIDIA Stock 2017
NVIDIA saw massive growth in 2017 as the company managed to increase its share value significantly. Starting from $25 at the start of 2017, the company’s stock price hit the $53 mark by December 2017. Various reasons have contributed to the high growth of the company’s stock, such as:
- The company had great numbers on its financial statements for the first three quarters of 2017 for its income, earnings per share (EPS), and free cash flow (FCF).
- It had launched and rolled out its Pascal-based graphics cards, which helped NVIDIA’s gaming revenue to jump.
- Increase in its gaming market share in the second and third quarters.
Most importantly, the company announced its plans for developing and launching the Volta GPU architecture. This news was also another factor in investors starting to buy NVIDIA’s shares.
NVIDIA Stock 2016
2016 was also an exceptional year for NVIDIA Corporation since its share price tripled in its value. NVIDIA Corporation saw its share price go up to $24 in December 2016 from around $6 at the start of the year. The main reason was that NVIDIA’s business and operations were expanding rapidly.
Furthermore, the company had impressive numbers in its last three quarterly reports. Its earnings surpassed the projections of many experts despite the PC market going down. The data center business segment also saw massive growth and reported huge figures compared to previous quarters.
NVIDIA Corporation’s market share in the gaming industry and its understanding of blockchain technology make it a stock worth considering. Investors looking to have blockchain stock in their portfolio should keep researching NVIDIA Corporation to make lucrative investment decisions.
Big hedge funds and top investors on Wall Street realize how big the blockchain industry can get in the next few years. Therefore, they want to stay ahead of the curve and buy these topmost blockchain stocks that have the potential to grow.
Many experts have already made predictions about the rise of blockchain and its increased usage throughout various other industries. The widespread adoption will increase the value of many companies, including NVIDIA Corporation.
So, investors are likely to buy more blockchain stocks in 2023 and the years ahead. Plus, the growing acceptance of digital and cryptocurrencies is likely going to increase the fuel of numerous blockchain stocks.
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