Nvidia is one of the most important companies that is creating the tools for the technology of the future. As one of the biggest computer chip designers in the country, Nvidia is creating processors that power things like artificial intelligence, graphic computing, autonomous driving, and more.
As such, they have become one of the most important and talked about companies in the world. Today, we are going to be looking at Nvidia and finding out just how much their stock price is.
Without further ado, let’s dive right in!
How Much is Nvidia Stock Right Now?
Currently, Nvidia’s share price is $166.66 as of the time of writing, only about $58 from its 52-week low and significantly below its 52-week high of $346.47.
Nvidia hasn’t had a great year and is floating around the lowest it has been in quite some time. Let’s take a closer look at Nvidia stock to see what brought it to the current share price.
Cars, Crypto, and No More Silicon
Nvidia hasn’t been doing all that well recently, but that wasn’t always the case. In fact, Nvidia was peaking at something of an all-time high (ATH) only one year ago this month.
In November 2021, in fact, Nvidia’s share price was floating around $330, over 50% of what it is today.
Why was Nvidia’s share price so high? Well, we need to look at what was going on in the world during that time.
Nvidia’s real share climb started around 2016 and began to really accelerate in 2018. The reason? Nvidia was probably the best supplier of GPUs (graphics processing units) in the world at the time, and everyone wanted one.
Historically, GPUs were used almost exclusively inside gaming PCs in order to provide power users with high-end graphics on their expensive gaming rigs. From 2016 to 2018, however, GPUs began to be co-opted for a secondary purpose: crypto mining.
In the early days of crypto, most of the major coins operated on what’s known as a “proof of work” model, and anyone with a GPU could run an algorithm that backed up the network of the coin (the blockchain). As a reward for running these little algorithms, you got more of that coin. This process is known as “mining,” and Bitcoin and (previously) Ethereum operated on a proof of work model.
From 2016 to 2018, crypto mining absolutely exploded and people from all over the world began setting up massive warehouses filled with GPUs, hoping to mine valuable cryptocurrencies. Who was ready to sell these GPUs? Nvidia.
AI and Machine Learning
At the same time, the conversation around autonomous driving, which is ultimately a conversation around artificial intelligence, started to emerge. Artificial intelligence and autonomous driving require massive amounts of processing power, and GPUs are especially good that processing that type of data. As companies like Tesla scaled, the need for these GPUs increased exponentially.
To describe it as plainly as possible, GPUs work around the limitations of CPUs by efficiently distributing computing tasks across GPU cores using a method called Single Instruction, Multiple Data (SIMD) architecture. Because machine learning requires large data inputs to create and perfect an algorithm, GPUs can help contribute more data more efficiently in complex computations that require multiple steps and a whole lot of power.
Essentially, GPUs are better at doing tasks and analyzing large chunks of data than CPUs.
No More Silicon
With all of the demand increase for GPUs going on, a shortage of silicon (the stuff used to make GPU chips) began to raise prices even further. The shortage really began to impact supply chains in 2020, and anyone with any understanding of economics knows that high demand and low supply mean really high prices.
Nvidia wasn’t just supplying the chip design to companies to make, they were also making more on each chip than ever before.
A Fast Decline
With such a fast rise, it was clear that Nvidia was poised for a fall. That fall began in late November 2021 and is still happening as of the writing of this article. The next stage of crypto mining (known as proof-of-stake) wiped out the need for hundreds of “mining farms” across the world, and tightening restrictions of crypto mining in China (the largest crypto mining country at the time) slashed demand rapidly.
Even more, earnings reports showed that Nvidia missed key targets due to laws restricting semiconductor sales in China, causing a mass sell-off. By October 2022, Nvidia’s share prices had plunged to nearly $110.
Still, with all that in mind, the world still has a need for GPUs, and the demand for machine learning isn’t just a novelty, but a certainty. The sharp sell-off over the past year may have been a bit of an overcorrection allowing forward-thinking investors to hop into a rapidly growing tech market.
In the past month, essentially since its 52-week low, Nvidia has already climbed 40% and doesn’t seem to be slowing down. The bowl-shaped graph depicting Nvidia’s share price seems to have finally rounded out.
Tomorrow, November 16th, will be a big tell for the immediate future of Nvidia, since Q3 earnings and reports are being released. If they are strong, expect quite a rally in the coming months. If they are weak, another panic could cause share prices to fall, giving investors another chance to get in on a stock that is producing the foundation the future will be built on.
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