Nvidia appears shortly after the 4% profit that the S&P 500 has been enjoying since the beginning of the year (NVDA) -1.93%)) It only rose by about 3.4% in 2025. While the S&P 500 rose sharply at 171% in 2024, with the S&P 500 above 23%, you may feel unfamiliar to see an AI superstar in this position.
But how about expanding your perspective a few years ago? Have you ever picked up Nvidia stocks five years ago? Are you seeing profits from your investments or are you waiting for it to recover?
This semiconductor expert has skyrocketed the stratosphere
AI stocks have only become prominent on most investor radar over the past few years, but Nvidia emerged as an industry leader in 2020 and SwiftStack, a data storage company that had already used technology in 2020. It was even working when it acquired. Nvidia’s Graphic Processing Unit (GPU). A surge in transactions continued over the next few years as Nvidia pursued acquisition strategies through aggressive growth.
A more robust intellectual property portfolio is not the only feature of Nvidia’s history over the past five years. The company is also achieving various financial metric improvements as its customers continue to source NVIDIA GPUs and other semiconductors. From topline growth to generating stronger revenue and free cash flow, Nvidia’s economic success has provided investors with ample support.
NVDA revenue (annual) data from YCHARTS
Over the past five years, the market has consistently rewarded Nvidia for its results, launching it around 1,820% higher. Those who bought $1,000 shares five years ago have seen their original investment grow to $19,270 while I was writing this.
Is it too late to scoop Nvidia stocks?
Despite Nvidia Stock’s excellent performance, those interested in its position have a great opportunity for stock trading to discount historical valuations. The stock is trading at 54.8 times the subsequent revenue, which is certainly expensive, but cheaper than the 5-year P/E of 73.4.
Scott Levine has no position in any of the stocks mentioned. Motley Fool has a job at Nvidia and recommends. Motley Fools have a disclosure policy.
