Technology giant NVIDIA Corp NVDA passed the $1 trillion milestone for market capitalization in 2023, cementing its place as one of the most valuable companies worldwide. At its recent GTC 2024, the company’s cemented its place in the artificial intelligence world.
Shares of the chip company ended 2023 as the top-performing stock in the S&P 500, marking a big win for investors who have been believers in the company for a year or more. Investors who have been betting on Nvidia since its IPO have been rewarded significantly more.
Here's a look at how much investors in the company's IPO have made.
Investing $1,000 in Nvidia at IPO: Nvidia held its initial price offering on Jan. 22, 1999, with shares priced at $12 each.
A $1,000 investment in the company would have been able to buy 83.33 shares at the time.
Since its IPO, Nvidia had several stock splits that increased the number of shares held by shareholders. The stock had 2:1 splits in 2000, 2001 and 2006, a 3:2 split in 2007 and a 4:1 split in July 2021.
Today, the original 83.33 shares would total 3,999.84 shares after the stock splits.
Today, the original $1,000 investment in Nvidia stock would be worth $3,575,696.97 based on a share price of $893.96. This represents a huge return for Nvidia IPO buyers with some potential millionaires created over the years.
For comparison, the same $1,000 invested in the SPDR S&P 500 ETF Trust SPY, which tracks the S&P 500, would have underperformed Nvidia.
A $1,000 investment in SPY stock could have bought 12.82 shares at the time, based on an adjusted price of $78.03 on Jan. 22, 1999.
The $1,000 invested in the SPDR S&P 500 ETF Trust would be worth $6,601.02 today.
Related Link: Nvidia Q4 Earnings Highlights: Revenue Beat, EPS Beat, Q1 Guidance And More
What Happened: Nvidia CEO Jensen Huang highlighted the company's growth with increased interest in artificial intelligence at its GTC 2024 event.
"There is absolutely something happening, something going on. The industry is being transformed," Huang said.
The Nvidia CEO and co-founder called the computer the single most important instrument today, because it affects every industry.
While Huang and Nvidia saw technology advancement coming, the CEO said ChatGPT helped capture the imagination of consumers and the capabilities of AI.
"A new industry has emerged."
Since its founding in 1993, Nvidia has sought to be at the forefront of technological advancements to help new industrial advancements.
In 1999, the company invented the Graphics Processing Unit, commonly known as GPU today. The GPU redefined the computer industry.
In 2012, Nvidia ushered in the modern era of AI with the AlexNet neural network, potentially showing the company ahead of others when it came to belief in the capabilities of artificial intelligence.
In March 2024. the company unveiled the Blackwell GPU, which could help the company further disrupt the growth of artificial intelligence.
Nvidia continues to draw praise from analysts as one of the best plays on the growth of artificial intelligence.
The company transformed over the years and has taken advantage of several industrial revolutions, with AI having the potential to help the company go even higher. Nvidia has been a top performer once again in 2024 to date, surpassing the $2 trillion market capitalization and joining even more elite company.
The big question for investors today is if Nvidia will keep outperforming the overall market and being one of the top-performing stocks going forward.
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
