Nvidia’s Market Triumph
In 2023, the technological behemoth NVIDIA Corp soared to a stunning $1 trillion market capitalization, firmly securing a spot among the globe’s most valuable entities. At the recent GTC 2024 event, the company solidified its standing in the realm of artificial intelligence.
Stock Market Champion
Ending 2023 as the top-performing stock in the S&P 500, Nvidia delivered a resounding victory for those who believed in the company for a year or more. However, those who held steadfast since its IPO reaped even greater rewards.
A Wealthy Ride
Let’s examine the riches amassed by early investors in Nvidia’s IPO.
The IPO Journey
Embarking at IPO: On Jan. 22, 1999, Nvidia commenced its journey with shares priced at $12 each.
A $1,000 investment during the IPO phase would have netted 83.33 shares back then.
Through multiple stock splits—2:1 splits in 2000, 2001, and 2006, a 3:2 split in 2007, and a 4:1 split in July 2021—the original 83.33 shares multiplied to 3,999.84 shares.
Presently, that initial $1,000 investment would stand at a mind-boggling $3,575,696.97, based on a share price of $893.96. The Nvidia IPO veterans have witnessed the creation of numerous potential millionaires over the years.
Comparative Tale
For perspective, the same $1,000 invested in the SPDR S&P 500 ETF Trust would have paled in comparison to Nvidia’s meteoric rise.
A $1,000 venture in SPY stock back then would have acquired 12.82 shares, valued at $78.03 on Jan. 22, 1999.
Today, that investment in the SPDR S&P 500 ETF Trust accounts for $6,601.02.
Nvidia’s Technological Odyssey
Since its inception in 1993, Nvidia has strived to lead the charge in technological innovations propelling new industrial revolutions.
In 1999, the introduction of the Graphics Processing Unit (GPU) revolutionized the computer landscape.
In 2012, Nvidia charted the modern AI era with the groundbreaking AlexNet neural network, showcasing its foresight and faith in AI abilities.
In March 2024, the unveiling of the Blackwell GPU marked another milestone in Nvidia’s journey, set to further disrupt AI growth.
Lauded by analysts as a prime player in the AI expansion, Nvidia’s evolution continues, poised to capitalize on the potential AI has to offer and cement its status as a top performer in 2024, recently surpassing a $2 trillion market cap.
Investors now ponder if Nvidia will maintain its stellar performance and reign as a top stock in the market moving forward.