Here’s How Much Money You Missed Out on If You Didn’t Buy 100 Shares of Nvidia This Year
Written by
Laura Beck
Edited by
Levi Leidy
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The Nvidia Corporation (NVDA) has experienced major growth over the past year.
The tech company was founded in 1993 by Jensen Huang, Chris Malachowsky and Curtis Priem. The idea was that they wanted to push the boundaries of computer graphics technology. The company initially focused on 3D graphics processing units for the PC market, but Nvidia’s big breakthrough came in 1999 with the release of the GeForce 256. This chip was marketed as the world’s first “GPU” (graphics processing unit), a term Nvidia coined. It was seen as a major innovation in 3D graphics in PC gaming – and set the company on its way to major success.
More recently, Nvidia’s performance is driven by its dominance in the artificial intelligence (AI) market. The company’s GPUs have become big in the world of training and running large AI models. This surge in demand for AI-capable hardware, coupled with Nvidia’s technological lead in this space, has majorly boosted its revenue and stock value.
For investors who hesitated to invest in this tech giant, it was, to put it frankly, a loss. Let’s figure out just how much potential returns an investor might have missed by not purchasing 100 shares of Nvidia one year ago.
Nvidia’s Stock Growth Over the Past Year
According to the data, as GOBankingRates sourced from Finbox, Nvidia’s one-year price total return stands at an impressive 160.6%. This takes into account not only the change in stock price but also adjusts for any dividends and stock splits that may have occurred during this period.
To calculate the potential missed opportunity, we need to look at Nvidia’s stock price from a year ago. The data shows that the adjusted prior close price was $43.51. Given that price, here’s how the investment would have played out:
- Initial Investment (one year ago):
- 100 shares at $43.51 per share
- Initial investment = 100 x $43.51 = $4,351
- Value after one year (160.6% increase):
- $4,351 x (1 + 1.606) = $11,338.71
So, a $4,351 investment in 100 shares of Nvidia a year ago would be worth $11,338.71 today, which is an incredible gain of $6,987.71.
Nvidia Compared to Its Competitors
To put this performance in context, we can compare Nvidia’s returns to some of its peers:
- Intel Corp. (INTC): -41.9%
- Qualcomm Inc. (QCOM): 55.2%
- Broadcom Inc. (AVGO): 93.7%
- Marvell Technology Inc. (MRVL): 32.8%
Nvidia’s year-over-year stock price return of more than 160% easily beats this group of peer companies, as well as many others on the market.
Editor’s note: Returns were calculated as of Sept. 19, 2024, and are accurate as of this date.
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