If you went back 25 years and invested $10,000 Nvidia stock when the company went public (and held through the ups and downs), what would your initial investment be worth now?
A ANALYSIS from 31-year-old financial services company The Motley Fool has the answer: Over $30 million.
That's more than double the value of the investment at the end of 2023 ($12 million) and thirty times what the investment would have yielded at the end of 2017 ($1 million), according to the analysis.
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Nvidia was founded in 1993 and went public six years later in January 1999, it first traded at $12 per share.
The tech giant is one of the Magnificent Seven, a coined term 2023 to describe Amazon, Alphabet, Apple, Meta, Nvidia, Microsoft and Tesla to differentiate INFLUENCE in shop. More than it belongs in this group, Nvidia has led it in performance.
Since Monday, Nvidia had a year-to-date return of about 147% compared to of Meta 41% and Of the alphabet 30.55%.
Amazon, MicrosoftAND Tesla had year-to-date returns of 29%, 20.26% and -16% respectively.
Nvidia only accounts for a third of the S&P 500's gains this year.
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The reason for Nvidia's growth is its pivotal position in the AI boom: Nvidia's graphics processing units (GPUs), which have been around for 30 years and powerful visuals in video games, laptops and more, are the brains of ChatGPT.
CEO Jensen Huang ESTABLISHED an early partnership with OpenAI in 2016 with an AI supercomputer gift. Nvidia now holds 80% of the AI chip market and tens of thousands of its chips power ChatGPT and other AI.
Nvidia CEO Jensen Huang. Photo by I-HWA CHENG/AFP via Getty Images
Nvidia's growth has benefited some of its longtime employees, who receive stock bonuses. At a company meeting in December, Huang RECITED called on these “semi-retired” employees to become the CEOs of their time.
Although Nvidia now leads the AI chip market, competition is growing from companies such as Intelstartups like Engraved, and even Nvidia's own customers. About 40% of Nvidia's revenue is BELIEVING to come from Microsoft, Meta, Amazon and Alphabet.