NVIDIA (NASDAQ:NVDA) has been on a historic run, with its stock price seeing significant growth in the past year. In 2021 alone, NVIDIA’s stock has surged by 177%, making it one of the best-performing stocks on the S&P 500 and Nasdaq 100. The semiconductor company specializes in AI chips for data centers and has recently surpassed Microsoft to become the most valuable company in the world with a market cap of $3.33 trillion.
Since 2014, NVIDIA has seen two stock splits, with the most recent being a 10-for-one split in June 2024. Prior to the split, NVIDIA’s stock was trading at around $751 per share, but has since surged to over $1,200 per share. Despite the split, NVIDIA’s stock has continued its upward trajectory, with a further 11% increase post-split to approximately $134 per share as of June 20. Year to date, the stock has returned about 177% on a split-adjusted basis.
If an individual had invested $5,000 in NVIDIA stock back in June 2014 when shares were trading at around $18 each, they would have acquired approximately 278 shares. After the two stock splits, the investor would now have over 11,000 shares, valued at a staggering $1.4 million based on the current price of around $127 per share. This represents a substantial growth of 250 times the initial investment, with an average annual return of 75.4% over a decade.
Despite its remarkable performance, duplicating the same success over the next 10 years may be challenging. However, NVIDIA remains a strong investment opportunity, given its leadership position in the AI industry and strong earnings growth. With the recent stock split providing investors with a chance to participate in the company’s next phase of growth, NVIDIA continues to be a promising prospect for those looking to capitalize on the evolving technology landscape.
In conclusion, NVIDIA’s remarkable growth trajectory in recent years has positioned it as a top player in the semiconductor industry. With its focus on AI chips for data centers and strong financial performance, NVIDIA has proven to be a rewarding investment for those who have held onto the stock for the long term. While past performance is not indicative of future results, NVIDIA’s continued dominance in the market suggests that it may still have room for growth in the years to come. For investors seeking exposure to the tech sector, NVIDIA remains a compelling choice with potential for further upside.
