Technology giant NVIDIA Corp NVDA has been one of the top-performing stocks of the past year, boosted by its role in the growth of artificial intelligence use cases. The growth could continue after beating analyst estimates in the second quarter.
While many investors have bought Nvidia shares or have exposure to the stock through ETFs, here's a look back at how much the lucky and perhaps wise investors who bought shares of Nvidia at IPO would have made.
Investing $1,000 in Nvidia at IPO: Nvidia became one of the most valuable companies in the world in May 2023, passing the $1 trillion market capitalization level.
Since that time, the company went on to pass the $2 trillion and $3 trillion market capitalization levels, even briefly becoming the most valuable public company in the world in 2024.
Back in 1999, Nvidia held its initial price offering on Jan. 22, with shares priced at $12 each.
A $1,000 investment in the company would have been able to buy 83.33 shares at the time.
Since its IPO, Nvidia had several stock splits that increased the number of shares held by shareholders. The stock had 2:1 splits in 2000, 2001 and 2006, a 3:2 split in 2007, a 4:1 split in July 2021 and the most recent 10:1 split in June 2024.
Today, the original 83.33 shares would total 39,998.4 shares after the stock splits.
The original $1,000 investment in Nvidia stock would be worth $4,826,606.93 based on a share price of $120.67. This represents a huge return for Nvidia IPO buyers with some potential millionaires created over the years.
Here’s a look at the return of Nvidia since its IPO with a Benzinga Pro Chart below.
For comparison, the same $1,000 invested in the SPDR S&P 500 ETF Trust SPY, which tracks the S&P 500, would have underperformed Nvidia.
A $1,000 investment in SPY stock could have bought 12.82 shares at the time, based on an adjusted price of $78.03 on Jan. 22, 1999.
The $1,000 invested in the SPDR S&P 500 ETF Trust would be worth $7,208.56 today.
What Happened: Nvidia CEO Jensen Huang highlighted the company’s growth with increased interest in artificial intelligence at its GTC 2024 event.
“There is absolutely something happening, something going on. The industry is being transformed,” Huang said.
The Nvidia CEO and co-founder called the computer the single most important instrument today, because it affects every industry.
While Huang and Nvidia saw technology advancement coming, the CEO said ChatGPT helped capture the imagination of consumers and the capabilities of AI.
“A new industry has emerged.”
Since its founding in 1993, Nvidia has sought to be at the forefront of technological advancements to help new industrial advancements.
In 1999, the company invented the Graphics Processing Unit, commonly known as GPU today. The GPU redefined the computer industry.
In 2012, Nvidia ushered in the modern era of AI with the AlexNet neural network, potentially showing the company ahead of others when it came to belief in the capabilities of artificial intelligence.
In March 2024. the company unveiled the Blackwell GPU, which could help the company further disrupt the growth of artificial intelligence.
Nvidia continues to draw praise from analysts as one of the best plays on the growth of artificial intelligence.
The big question for investors today is if Nvidia will keep outperforming the overall market and be one of the top-performing stocks going forward.
The Benzinga Pro chart below of Nvidia stock over the past five years shows the surge in the share price.
Did You Know?
- Congress Is Making Huge Investments. Get Tips On What They Bought And Sold (Including Nvidia Stock!) Ahead Of The 2024 Election With Our Easy-to-Use Tool
This article was previously published by Benzinga and has been updated.
Photo: Unsplash
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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