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华尔街日报If You'd Invested $500 in Nvidia Stock 10 Years Ago, Here's How Much You'd Have Today
Key Points
Nvidia got its start as a gaming hardware company, but it's now focused on the AI processor space.
Explosive growth for AI GPU sales has made long-term Nvidia shareholders rich.
Nvidia (NASDAQ: NVDA) has changed the world, but it didn't get its start as a company focused on artificial intelligence (AI) processors. A decade ago, the AI hardware leader actually generated the vast majority of its revenue from graphics processing units (GPUs) designed for high-end video game performance.
The processing approach used with the company's gaming GPUs wound up offering big advantages for cloud computing, and these advantages became even more pronounced when it came to the training of advanced AI models. Nvidia's processors are the foundation-level hardware pushing the AI revolution forward, and surging demand for its hardware has translated into soaring sales and earnings. It's also made patient investors very wealthy.
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Nvidia stock has delivered a success story for the ages
Over the last decade, Nvidia stock has posted a total return of roughly 26,080%. That means that a $500 investment in the company made 10 years ago would now be worth nearly $131,000. Meanwhile, the stock has delivered a total return of 1,290% over the last year -- good enough to turn a $500 investment into roughly $7,000.
With a market capitalization of approximately $4.55 trillion, Nvidia stands as the world's most valuable company -- and strong demand for AI semiconductors could help it hold on to the crown. Predicting a decade ago that the company would go on to be the biggest player in the AI revolution and the world's largest business would have been virtually impossible, but the stock has delivered life-changing returns for long-term shareholders.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.