Last year, 2023, can easily be described as the year of Nvidia (NASDAQ: NVDA) as the semiconductor giant, thanks to its cutting-edge technology and leading position in the microchip industry, became one of the main beneficiaries of the artificial intelligence (AI) boom.
Not only did NVDA stock grow from about $148 to $480 within 52 weeks, but the rise has continued into 2024 with the blue-chip chipmaker surging another 97.23% year-to-date (YTD) to its latest closing price of $950.02 on March 25.
While much has been said – and rightly so – about Nvidia’s link with the AI industry, the semiconductor giant saw its shares first gain significant traction approximately a decade ago as cryptocurrencies started truly proliferating due to its role in mining machines.
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Indeed, assembling your own gaming rig became exceedingly expensive – along with NVDA shares – as Bitcoin (BTC) was racing toward $20,000 in 2017 and once again in 2021 as the crypto market was experiencing its previous across-the-board rally.
Finally, while it is evident that investing in Nvidia stock at any point in its storied history would have been a profitable decision, Finbold decided to ask and answer how much would $1,000 put into the company in its arguably first major year – 1999 – be worth in 2024.
1999 Nvidia stock investment returns
The penultimate year of the 20th century was big for Nvidia for two reasons. It was the year the company had its initial public offering (IPO) and it was the year the GeForce 265 – the first in its series and a graphical processing breakthrough – came out.
White Nvidia had its stock market debut at $12 per share, and the many stock splits since means that, for the calculation, an opening price will be taken as approximately $0.40 – especially since the calculation will assume a stock purchase some months after the IPO but below NVDA’s 1999 highs.
In 1999, $1,000 would have purchased approximately 2,222 shares of Nvidia at $0.40 meaning that by the market’s closing on March 25 – when the blue-chip chipmaker stood at $950.02 – an investor would have had a little over $2.1 million.
This means that a 1999 investment in NVDA would have returned 237,000% and a profit of slightly over $2.1 million.
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