Nvidia’s graphics processing units are integral to training AI models, including large language models like OpenAI’s ChatGPT and Google’s Bard, making it the market leader in the high-performance computing and AI hardware space.
And because of that dominant position, it’s also one of the market’s most closely watched stocks.
Nvidia reported its fourth-quarter earnings for fiscal year 2024 after market close on Wednesday. It posted revenue of $39.33 billion, which exceeded expectations of $38.05 billion, according to LSEG consensus estimates. Similarly, earnings per share came in at $0.89, compared with estimates of $0.84.
Major tech companies like Meta, Amazon and Alphabet have invested in the chipmaker’s hardware for their AI data centers, which helped Nvidia’s revenue rise 114% to $130.5 billion in 2024.
Nvidia’s stock has surged more than 440% in the past two years, CNBC reports, at one point reaching a market capitalization of over $3 trillion to become the most valuable U.S. company, though it has since slipped from that peak.
Investors have mostly shrugged off competitive threats from DeepSeek, a Chinese company whose new AI model challenged the notion that building smarter AI always requires a greater number of Nvidia’s chips, as well as concerns about potential tariffs on semiconductor imports that could impact the company’s supply chain. Nvidia’s stock fell sharply in January, but has recovered somewhat since then.
How much an investment in Nvidia is worth
While Nvidia’s stock price has only partially recovered since January, its long-term gains have been very lucrative for investors. To give you a sense of the stock’s value, CNBC analyzed how much a $1,000 investment in Nvidia made one, five, 10 and 26 years ago — when the company went public in 1999 — would be worth today.
CNBC’s calculations below include total returns and are based on Nvidia’s Feb. 26 closing share price of $131.28. They don’t factor in potential changes in the company’s share price following its recent earnings report.
If you invested one year ago
- Percentage change: 66%
- Total as of Feb. 26: $1,660
If you invested five years ago
- Percentage change: 1,863%
- Total as of Feb. 26: $19,634
If you invested 10 years ago
- Percentage change: 23,584%
- Total as of Feb. 26: $236,835
If you invested when Nvidia went public in 1999
- Percentage change: 525,754%
- Total as of Feb. 26: $5,258,542
While Nvidia’s stock performance is impressive, it’s not typical of a publicly traded company listed on the Nasdaq. Financial experts generally advise against choosing individual stocks based only on past performance. Markets are unpredictable, and a company’s success doesn’t ensure future returns.
For most investors, a passive approach is often more effective and less risky. Investing in low-cost index funds is a proven strategy, providing broad market exposure which can minimize risk.
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