Investments in Nvidia shares 20 years ago are worth 12 times more today

Investments in Nvidia shares 20 years ago are worth 12 times more today

The talk of Wall Street these days is Nvidiaafter appreciating approximately 65% ​​since the beginning of the year, with a market capitalization that is only behind those of Microsoft, Apple and Saudi Aramco and even more than Amazon.

The chip manufacturing company managed to reach a valuation of US$2 billion thanks to this behavior, which positioned it as the fourth most valuable company in the world. This makes investors think about how much money they would be earning by having invested years ago in this company.

A report developed by Visual Capitalist recorded how much US$5,000 invested in Nvidia years ago.

Back in the 2000s, Nvidia had just invented its computer graphics processing unit. so that they rendered more fluidly in video games and video editing.

For those who invested an amount of US$5,000 in 2000, today they have more than US$4.7 million, because the price of shares of Nvidia increased 92.2% during 23 years.

For those who invested in 2010, those US$5,000 become US$943,610 today. While for those who did so in 2015, the amount would be US$756,854.

Over the past decade, the company has focused on artificial intelligence. Already in 2020, its share price skyrocketed (1,119%) as end customer segments became more focused on data centers and the cloud. In fact, that is the jump that makes those shares worth 12 times more today.

And Nvidia’s path is projected to be long, well approximately 70% of the chips sold in the world are by this company, which puts it above AMD, its main competitor.

Last year, Nvidia sold 2.5 million chips to customers including OpenAI, Microsoft, Meta Platforms and Alphabet. The price range of these chips can be between US$16,000 and US$100,000.

In the fourth quarter of last year, Nvidia generated revenues that exceeded US$22 billion, which broke another record, as this amount represented a year-on-year increase of 265%.