If you went back 25 years and invested $10,000 in Nvidia stock when the company went public (and held on to it through its ups and downs), how much would your initial investment be worth today?
Some evaluation from the 31-year-old financial services firm The Motley Fool has the answer: greater than $30 million.
According to the evaluation, this is greater than twice the value of the investment at the end of 2023 (USD 12 million) and thirty times the value that the investment could bring at the end of 2017 (USD 1 million).
Nvidia was founded in 1993 and went public six years later, in January 1999, shares were initially traded at $12 per share.
This tech giant is one of the Magnificent Seven, a term used in 2023 describe Amazon, Alphabet, Apple, Meta, Nvidia, Microsoft and Tesla for their outstanding achievements influence on the market. Nvidia not only belongs to this group, but is also its leader in terms of performance.
From Monday Nvidia achieved an annual rate of return of around 147% compared Finish 41% and Alphabet 30.55%.
Amazon, MicrosoftAND Tesla achieved annual rates of return of 29%, 20.26% and -16%, respectively.
Nvidia alone accounts for a third of the S&P 500’s profits this yr.
The reason for Nvidia’s growth is its key position in the AI boom: Nvidia’s graphics processing units (GPUs), which have been available since 30 years and visual effects in video games, laptops and other devices are the brains behind ChatGPT.
CEO Jensen Huang formed early partnership with OpenAI in 2016 with an AI supercomputer. Nvidia now has 80% of the AI chip market and tens of hundreds of its chips power ChatGPT and other AI solutions.
Nvidia CEO Jensen Huang. Photo: I-HWA CHENG/AFP via Getty Images
Nvidia’s growth has benefited some of its longer-tenured employees, who receive stock bonuses. At the company’s December meeting, Huang supposedly called on these “semi-retired” employees to change into the CEOs of their time.
While Nvidia currently leads the AI chip market, there is growing competition from established firms equivalent to Intelstartups like Etchedand even Nvidia’s own customers. About 40% of Nvidia’s revenue comes from he believed come from Microsoft, Meta, Amazon, and Alphabet.