It will probably be the best investment you ever make.
Nvidia (NVDA -0.72%) Stocks are the poster child for the current bull market. The company has risen more than 220% over the past year, briefly taking the top spot as the stock market’s most valuable company, but has since taken a step back.
There’s currently no strong consensus on whether NVIDIA stock is worth buying now, but if you had enough foresight to buy Nvidia stock decades ago, you’d have a well-inflated egg on your hands. I would have put it in.
once in a lifetime chance
If you bought Nvidia stock 20 years ago, it wasn’t because you envisioned it powering generative artificial intelligence (AI) applications in 2024. But smart tech investors saw value in the chips that NVIDIA made for other types of applications, and it held a solid position even before it became famous in today’s market.
Nvidia went public in 1999 at $12 per share and has split six times since then. There were 2-1 splits in 2000, 2001, and 2006. in 2007 with a 3-2 split. in 2021 with a 4-1 split. And this year, we had the largest 10-1 split in history. Currently, each initial public offering (IPO) share is worth 480 shares, with a split-adjusted IPO price of $0.04 per share.
Nvidia has been in the market for 25 years and is up 373,000% from its opening day closing price. If you had caught your investment early enough exactly 20 years ago and held onto it through the ups and downs, you would have made 123,200%, an impressive 42.7% annualized return. If you invested $1,000, you would now own over $1.2 million worth of Nvidia stock.
Nvidia has lost most of its value several times over the past 20 years. In fact, it completely lost 50% of its value in 2022, just before the explosion. What about the lesson? You don’t have to regret not buying in the past, but if you own a great business, hold onto it for the long term.
Jennifer Cybill has no position in any stocks mentioned. The Motley Fool has a position in and recommends Nvidia. The Motley Fool has a disclosure policy.
