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      Nvidia (NVDA) Could Continue Long-Term Rally - Stocks Telegraph

      By Shan Zee

      Published on

      December 11, 2020

      12:48 PM UTC

      Nvidia (NVDA) Could Continue Long-Term Rally - Stocks Telegraph

      The evolution of the share price of Nvidia (NVDA) has been one of the most remarkable in the last decade, going from $5.7 in 2009 to more than $500 in 2020, in a bull market of a magnitude that few stocks have been able to equal in that period.

      Nvidia is one of the Nasdaq’s largest stocks, trading on the Nasdaq100 and one of the 15 biggest companies on the capitalization index, ranked 10th at the time of this writing.

      Despite being a U.S. company, the Asian market depends on it, especially on the Chinese part of it because if we consider Taiwan as within the Sino-sphere, we see that it is half of the sales of the company. Nvidia is possibly not involved in a big trade war between China and the United States because of this.

      With more than 70 percent of the money in the hands of this form of shareholder, the company’s shareholding is highly institutional, with funds such as Vanguard or Fidelity leading the list. The company’s founder, the Taiwanese Hsun, has a full fortune with that stake. He still has an interest in the company, which is good news for him.

      The outcomes of Nvidia are completely fantastic, with impressive profit growth, and that more than explains why this stock is so attractive.

      What we will end up seeing in 2018 and 2019 was already expected by the stock market launch of 2015 and the true explosion of 2016 and 2017.

      As we see, the price of a share increases unabashedly often because it can actually “detect” that the future profit is going to be exceptional for many years. That was the case at Nvidia these years.

      Nvidia has many competitors in the world market and particularly in the Asian markets.

      In the United States, while it competes with names such as AMD, IBM or Intel, it is the most profitable company in this market.

      An all-out trade war between the United States and China will be one of the clouds that might present further potential problems for this company, causing the company to experience significant retaliation in the Chinese market (not so much in Taiwan, which is pro-USA).

      Currently Nvidia’s stock price is at $518 with yearly gain of 138%.

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