10 Years Ago If You Invested $20,000 in Nvidia, This Is How Many Millions You Would Have Today
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…
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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 | AAPL Price Prediction), 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
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
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
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
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
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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Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad, diverse career, including a stint as creative services director at an NBC affiliate in Austin, Texas, gives him unique insight into the financial industry.
Lee Jackson's journey in the financial industry spans more than 30 years, including nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career spanned pivotal sell-side Wall Street events, from the dot-com rise and bubble to the Long-Term Capital Management debacle, 9/11, and the Great Recession of 2008. This reflects his resilience and adaptability amid market volatility.
Lee Jackson’s practical financial industry experience, gained through a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing across various platforms. This unique combination allows him to shed light on the intricacies of Wall Street in a way only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.
Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.
