A lot of companies have seen rapid expansion in 2024 — but the meteoric rise of Nvidia (NASDAQ: NVDA) is perhaps the most notable. Nvidia stock has notched two consecutive years of triple-digit gains.
While the company’s latest earnings report was a success, with NVDA shares reaching new all-time highs (ATHs), profit-taking ensued.
The upward trajectory that NVDA stock has been on has slowed down in the last month — over the last thirty days, prices have actually decreased by 3.13%. On the other hand, year-to-date (YTD) returns still stand at an impressive 178.80%. What’s more, analysts remain almost unanimously bullish on the semiconductor business. At press time, Nvidia stock was trading at $134.29.
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However, percentage changes and stock splits tend to make things a little confusing after a while. For a clearer overview of just how profitable investing in Nvidia has been, Finbold has framed the question in a simpler manner. Here’s how much money you’d have right now if you invested $1,000 in NVDA shares at the beginning of the year.
Nvidia stock has had quite a successful year
When calculating the returns netted by Nvidia stock, we also have to take into account the 10:1 stock split executed on June 7. With that in mind, a single NVDA share was trading at $49.24 at the beginning of January.
A $1,000 investment would have netted 20 full Nvidia shares at the time. At present, those 20 shares are worth $2,685 — in other words, an absolute return of $1,685, or 168.5% in percentage terms.
If, however, an investor were to have purchased fractional shares, the initial $1,000 investment would have absorbed the entirety of the 178.80% YTD gain — bringing returns up to $2,788 and profits up to $1,788.
While the rally that Nvidia stock has been on has slowed, short-term prospects are looking quite good for the Jensen Huang-led semiconductor venture — if investors have a fitting level of risk tolerance, Nvidia still represents an appealing option for a long position.
Featured image via Shutterstock
