Investing

10 Years Ago If You Invested $20,000 in Nvidia, This Is How Many Millions You Would Have Today

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For years, 24/7 Wall St. has covered stocks under $10. While not all were home runs, many savvy investors with foresight and patience made millions on stocks that traded in the single digits.

One company that traded under $10 for years has become the darling of the stock market and has led a massive rally over the last year, especially since October. For low-price stock skeptics, many of the biggest companies in the world, including Apple Inc. (NASDAQ: AAPL), Amazon.com Inc. (NASDAQ: AMZN), and NetFlix, Inc. (NASDAQ: NFLX) all traded in single digits at once.

We decided to stroll back in time to see how wealthy an investor would be if, ten years ago, in 2014, they invested $20,000 in Artificial Intelligence giant Nvidia Inc. (NASDAQ: NVDA). One thing is for sure: most investors will wish they had put this monstrous trade on.

Nvidia emerged as an AI chip giant

Nvidia
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Nvidia Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California,

The company traded under $10 per share from 2000 to 2015, pioneered many technologies on which AI applications depend.

Nvidia graphic cards got the party started

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NVIDIA holds approximately 80% of the global market share in GPU semiconductor chips as of 2023.

The Nvidia graphics processing units (GPUs) helped the gaming industry explode and were the go-to chips for processing multiple tasks simultaneously. While Nvidia is still a massive player in the gaming world, the AI explosion changed everything.

Ten years ago, Nvidia traded between $3.93 and $4.78 on a closing basis

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Nvidia expects revenue of $24 billion in the first quarter of fiscal 2025.

If we average those January and December 2014 closing prints and assume that not all the stock was bought at once, a buyer likely would have an average print of about $4.36 per share. That would translate to approximately 4,587 shares.

Don’t forget about the stock split

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NVIDIA has split five times in its history.

In the summer of 2021, the company conducted a four-for-one split. Now, our very savvy 2014 buyer is holding 18,348 company shares.

Nvidia explodes higher starting in October of 2023

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Vanguard is the biggest shareholder with 204.5 million shares.

The low close in October of last year was a stunning $407.80, and since then, the stock has skyrocketed up an incredible 127% and traded at an all-time high of $926.69 on March 6, 2024.

Nvidia sold off 7.4% in the last week and closed recently at $856.16

With a huge share count that is on the books at an average cost of $1.09 per share due to the stock split, there are two ways to figure the massive gain:

If all of the stock was sold at the March 5th closing all-time high the sale would yield a incredible $17,002,908-$20,000 cost = $16,982,908

If the sale were conducted now, the shares would fetch a massive $15,708,823-$20,000 cost= $15,688,823

 

 

 

 

 

 

 

 

 

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