The ever-changing technology industry saw semiconductor companies emerge as pivotal players, steering the trajectory of progress over the past decade.
The exponential growth of the broader tech sector can be largely attributed to the indispensable role played by these companies in producing powerful chips that power an array of cutting-edge technologies.
Their impact has been particularly evident this year as the frenzy around generative artificial intelligence (AI) services led to an unprecedented demand for high-end chips.
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Nvidia the most-rewarding chip stock over last 10 years
Amidst the ascent of the semiconductor sector, several companies witnessed substantial growth in the stock market as well. This not only underscored the industry’s vitality but has also translated into impressive returns for shareholders.
Over the past decade, Nvidia (NASDAQ: NVDA) delivered annual total shareholder returns of a whopping 63.4%.
This figure represents the overall return on investment for investors who held Nvidia stock during that period, factoring in both stock price appreciation and any dividends paid.
For example, if an investor had initially invested $1,000 in Nvidia stock ten years ago, the investment would have, on average, increased by 63.4% each year over the past decade.
The second-best semiconductor stock in terms of annual total shareholder return is AMD (NASDAQ: AMD), at 42.3%, followed by Broadcom (NASDAQ: AVGO) at 39.9% and Cadence Designs Systems (NASDAQ: CDNS) at 35%. Lam Research (NASDAQ: LRCX) returned 31.4%, rounding up the top five companies.
Interestingly, industry giants Qualcomm (NASDAQ: QCOM) and Intel (NASDAQ: INTC) are not even in the top 10. These two chipmakers returned 8.8% and 8.9%, respectively, notably lower than their rivals.
For perspective, an S&P 500 index fund delivered 11.7% in annual shareholder returns over the past decade, underscoring how generously semiconductor companies have rewarded their investors during this period.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
