NVIDIA (NASDAQ: NVDA) NVIDIA has been a top stock for many years, but more recently it has become a household name thanks to its graphics processing units (GPUs) that power generative artificial intelligence (AI) applications. Demand for NVIDIA’s chips has skyrocketed, which is reflected in surging revenues and profits. Investors quickly jumped on the opportunity, and NVIDIA’s stock price has risen 783% over the past two years.
Let’s go back a little further and see what you would have made today if you had invested $1,000 five years ago.
It’s not just AI
Five years ago, generative AI was just a concept for techies, but Nvidia was already a leading chip maker. The company revolutionized the gaming industry with its GPU in 1999, and its chips are used for data computing in a variety of industries, including scientific applications and automotive. Generative AI is so useful to consumers that Nvidia has become a symbol of its power.
Like most companies and industries, NVIDIA has seen its ups and downs. In the first two of the last five years, as stimulus checks flooded the nation and market optimism fueled, the stock price rose 400%. Then inflation and the ensuing market crash caused the stock price to fall 50% in 11 months. Smart investors held on and are now reaping the benefits of buying quality stocks and weathering volatile periods.
If you had invested $1,000 five years ago, just before the pandemic and subsequent market turmoil, you would have a whopping $31,500 today.
Can Nvidia succeed again? In the long term, there are many opportunities. Nvidia may be under some pressure in the short term because it already has a high valuation and is working to develop a competitor, so the next few years may be difficult. But if you invest in Nvidia now and hold on through the Wall Street hole, you should see big gains in the future.
Should I invest $1,000 in Nvidia right now?
Before you buy Nvidia stock, consider the following:
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Things to consider NVIDIA This list was created on April 15, 2005…If you invested $1,000 at the time of recommendation, That comes to $786,046.!*
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Jennifer Cybill has no position in any of the stocks mentioned. The Motley Fool owns shares in and recommends Nvidia. The Motley Fool has a disclosure policy.
The article If You Invested $1,000 In NVIDIA Stock Five Years Ago, Here’s How Much You’d Have Today was originally published by The Motley Fool.
