Investors who’ve held on to the stock this long have seen truly spectacular returns.
Nvidia (NVDA -2.26%) has dominated stock market discussion over the past couple years, but it’s far from a newcomer. The company was founded on April 5, 1993, and it began trading publicly after its initial public offering (IPO) on January 22, 1999.
Had you bought one share of Nvidia stock at its IPO, you would currently have 480 shares, thanks to the six stock splits it has undergone in that time.
| Stock-Split Date | Amount of the Stock Split |
|---|---|
| June 2000 | 2-for-1 |
| Sept. 2001 | 2-for-1 |
| April 2006 | 2-for-1 |
| Sept. 2007 | 3-for-2 |
| July 2021 | 4-for-1 |
| June 2024 | 10-for-1 |
Data source: Seeking Alpha.
How much money would you have made in that time?
Although Nvidia has been on the market for a quarter century, it hasn’t always been the high-flying stock that investors have seen over the past few years. That said, had you bought one share of Nvidia at its IPO price of $12.00 per share and held on to it all this time, your investment would be worth $85,378 as of this writing. That works out to just under a 40% compound annual growth rate for your position.
Image source: Getty Images.
It’s also worth noting that this rate of return doesn’t include Nvidia’s dividend, which it initiated in Nov. 2012. Anyone who reinvested their dividends would only have boosted their long-term returns. These are mind-boggling results, and Nvidia seems to have plenty left in the tank as it takes center stage in the growth of artificial intelligence.
Stefon Walters 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.
Great Job newsfeedback@fool.com (Stefon Walters) & the Team @ The Motley Fool Source link for sharing this story.
