The chipmaker has delivered a veritable windfall for investors.
Since its IPO in January 1999, Nvidia has (NVDA -2.13%) has established itself as one of the most successful companies in the world. The company is particularly good at adapting its technology to expand into new markets.
The company pioneered the graphics processing unit (GPU) that revolutionized the gaming industry, turning boxy figures into lifelike images. The secret to its success lies in parallel processing, which allows the chip to perform many mathematical calculations simultaneously. Nvidia’s processors are currently used in product design, autonomous systems, cloud computing, data centers, artificial intelligence (AI), and more.
The company’s ability to adapt its technology has been a boon for shareholders. NVIDIA stock fell below its issue price multiple times in early 1999, even though investors did not participate in the IPO itself. For investors lucky enough to get the stock at the IPO price of $12 (or less), the stock has returned 493,940%.
multiplying like rabbits
At first glance, one share of stock may seem insignificant, but one share of the right stock can have a huge impact on an investor’s success. In Nvidia’s case, the company’s performance and soaring stock price led to numerous stock splits, turning one share into many more.
Here is a list of Nvidia’s stock splits over the years.
June 27, 2000 1-2 split September 12, 2001 1-2 split April 7, 2006 1-2 split September 11, 2007 2-2 split 1 Split, 2021 7 Mon 20th 10-1 Split, June 10, 2024
As a result of multiple stock splits, an investor who bought just one share of Nvidia stock near its IPO in 1999 would now be the proud owner of 480 shares.
But sustaining NVIDIA for over 25 years and reaping this windfall took a great deal of discipline and self-control. The stock has lost more than half its value multiple times, leaving fair-weather investors scrambling for an exit.
That being said, consider the following. A $1,000 investment in Nvidia in early 1999 would be worth more than $4.9 million today.
