If You'd Invested $1,000 in Nvidia Stock 10 Years Ago, Here's How Much You'd Have Today
Imagine yourself in 2014. Back then, there was an up-and-coming chip company called Nvidia (NASDAQ: NVDA), with graphics processors that were popular in video game applications.
Things weren't bad, as video games were a growth industry, though cyclical. But 2014 was a tough year. In fact, in the second quarter of that year, Nvidia posted a revenue decline.
With those types of results, investors might have viewed Nvidia as an already-mature company. But those looking more deeply might have learned of Nvidia's new software platform called CUDA (Compute Unified Device Architecture), which enabled Nvidia graphics chips to execute data processing in a parallel format. That meant many calculations could be executed simultaneously, whereas CPUs calculated data in a linear fashion.
Some hypothesized that CUDA-enabled GPUs would one day overtake the mighty CPU as the main type of data center computing processor. Had one placed a modest $1,000 bet on that scenario, here's how much you would have made.
$280,000!
A modest $1,000 investment in Nvidia in June of 2014 would have grown (dividends included) to a stunning $280,600 today! That's a 280-bagger, amounting to a 27,960% gain.
Two things happened. The capabilities of generative artificial intelligence technology became apparent following the introduction of ChatGPT in late 2022 and Nvidia's GPUs became the best way to execute the massive number of calculations needed to train these models. As a result, enterprises began falling over themselves to buy these coveted chips.
That sent Nvidia's revenue up 262% last quarter to $26 billion, with net margin surging to 58.5%. For reference, in Q2 2014, Nvidia made just $977 million in revenue, with adjusted (non-GAAP) net margins of 13.6%.
A life-changing investment
As Nvidia shows, investing in just one incredible growth stock early on can make up for dozens of mediocre stock picks and make a huge difference to your financial security and independence. While not many stocks will turn into the next Nvidia, the "next Nvidia" could be out there waiting to be uncovered in the market today.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $830,777!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of June 10, 2024
Billy Duberstein and/or his clients have no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
