A surge in artificial intelligence interest and use cases helped propel NVIDIA Corporation NVDA to a market capitalization of more than $1 trillion.
The impressive milestone helped boost the wealth of company CEO and co-founder Jensen Huang. While Huang previously got a tattoo to celebrate a company milestone years ago, there is no tattoo planned to celebrate the company being worth $1 trillion.
What Happened: Shares of Nvidia gained more than 200% in 2023, one of the best returns by a large capitalization stock for the year, boosted by the strong performance of artificial intelligence stocks.
Huang co-founded Nvidia in 1993 and still leads the company today. The soaring stock price helped boost the wealth of Huang, adding $30.2 billion to take his wealth to $44.0 billion in 2023, ranking as the 29th richest person in the world.
Before Nvidia hit a $1 trillion market cap, another milestone was hit years ago with shares passing the $100 level. That level would be reached several times with shares splitting multiple times since 2000.
To celebrate the occasion of shares hitting $100, Huang promised company executives he would get the Nvidia logo as a tattoo.
In a 2017 interview with Fortune, Huang revealed the tattoo and shared more details on it.
"So, I really want to extend it. I actually kinda do. I would love to. But getting it really, really hurt," Huang said.
Huang said his family was with him when he got his tattoo.
"I was crying like a baby. My kids were with me, and they were like, ‘Dad, you've gotta control yourself.'"
Huang recalled a semi-annual meeting years ago being the reason for the tattoo.
"And at one, someone said, ‘What are we gonna do when the stock price hits $100?'"
Huang recalled that others said they would shave their head, paint their hair a new color, get a mohawk and even get a nipple ring.
"So I said, ‘Yeah all right, I'll get a tattoo.'"
The first picture of the tattoo that can be found online of Huang's tattoo comes from the Nvidia Gaming Festival with a post on Nvidia's Instagram on Oct. 25, 2014.
"NVIDIA CEO Jen-Hsu Huang shows off his NVDIA tattoo at the NVIDIA Gaming Festival," the post reads.
It is unknown when exactly Huang got his tattoo, but it doesn't sound like there will be more added to his arms anytime soon.
"Ageing gracefully. No more tattoos. It hurts way more than anybody tells you," Huang said in a 2023 interview.
Related Link: Nancy Pelosi, Husband Bet Millions On Nvidia Stock After Missing Out On Earlier $8-Million Profit
Investing $1,000 in Nvidia Stock: With the date unknown when exactly Huang got his tattoo, a starting point of when the tattoo was unveiled to the public can be used.
The Nvidia Instagram post with Huang's tattoo was shared on Oct. 25, 2014, which fell on the weekend. Shares opened at a split-adjusted $4.62 the following Monday.
A $1,000 investment could have bought 216.45 NVDA shares. The $1,000 investment would be worth $103,380.85 today. This represents a potential return of 10,238.1%.
Compare that to a $1,000 investment in the SPDR S&P 500 ETF Trust SPY, which could have bought 5.11 SPY shares at the time. The $1,000 investment would be worth $2,400.83 today, representing a potential return of 140.1%.
Another point of reference could have been to buy Nvidia shares after the Fortune interview that labeled Huang the Businessperson of the Year and made the tattoo more a storyline to the public.
A $1,000 investment could have purchased 18.67 shares of Nvidia on Nov. 16, 2017 based on a split-adjusted price of $53.55. The $1,000 investment would be worth $8,917.17 today, representing a return of 791.7%.
The same $1,000 invested in the SPDR S&P 500 ETF Trust on the same date could have purchased 3.89 SPY shares, which would be worth $1,827.64 today. This represents a return of 82.8%.
Jim Cramer once named a dog after Nvidia based on the strong stock returns and Huang has a tattoo to mark the occasion. With a soaring stock price in 2023 and over the last 10 years, investors are likely happy to be following the story that is Nvidia.
Read Next: Cramer Hails Nvidia’s ‘Predictably Fabulous’ Jensen Huang: ‘Visionary CEO With A Great Track Record’
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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