Nvidia (NVDA) is the inventor of the graphics processing unit (GPU) and a market leader in the semiconductor industry. A $10,000 investment during the NVDA IPO would be worth $2.95 million today.
From the invention of the GPU to the AI revolution: Nvidia’s expansion to 90% market share
Nvidia (NVDA) first launched in 1993, and by this point, the company was a late-comer to the semiconductor industry. However, the launch of its first graphics processing unit (GPU) in 1997 was quickly followed by the release of its GeForce 256 in 1999, which brought widespread acclaim for the computing company.
Since then, Nvidia has become the market leader for workstation graphics and supercomputer accelerators. Nvidia’s GPUs dominate both enterprise and retail computing, and are, as of today, commonly used in laptops, desktops, gaming consoles, and industry-grade supercomputers due to their powerful performance capabilities.
Forrestor Wave conducted a study in 2021 which concluded that Nvidia GPUs have become “synonymous with AI infrastructure” in recent years. Not only are Nvidia’s GPUs commonplace among AI supercomputers, but the company has also expanded operations and now provides subscription-based software that enables companies to create custom AI applications for a variety of use cases.
It is estimated that Nvidia has a 90% share of the workstation graphics and supercomputer accelerator markets, as of 2021. Since the company went public during its 1999 IPO, the stock price has risen consistently and now finds itself at the peak of a third all-time high in the past 5 years.
NVDA all-time chart, via TradingView
NVDA climbs 232.34% YTD, algorithm predicts downturn
NVDA stock has more than tripled in value since the beginning of 2023. This can be attributed to the AI investment bubble, as NVDA’s GPUs are integral to generative AI training and the development of new artificial intelligence tools.
This is NVDA’s third all-time high in the past 5 years. The stock price also benefited from the tech bubble of 2021 and the crypto bubble of 2018. Nvidia’s link to crypto is that its GPUs are integral to the creation of virtual reality landscapes for metaverse GameFi companies.
The current NVDA price is equal to the 1.618 Fibonacci extension level, via TradingView
The NVDA price surge of 2023 now finds itself at a pivotal point. The current price of $485.09 is equal to the 1.618 Fibonacci extension level, which may indicate that a trend reversal is likely soon. Indeed, the CoinCodex price prediction algorithm expects NVDA to see a full retrace back to its 2021 all-time high within the next 12 months.
1-Year NVDA price prediction, via CoinCodex
The algorithm has forecasted a full retrace back to the 2021 all-time high at $320. It then expects a retest of the recent high, before gradually falling back below support at the former ATH.
How much would $10,000 invested during the NVDA IPO be worth today?
Investors who purchased $10,000 worth of NVDA stock during the 1999 IPO would have owned 507 shares at the time. However, NVDA initiated a stock split on four separate occasions. Three of these splits were 2-for-1, and the most recent split was a 3-for-2 exchange in 2007.
Adjusted for the stock splits, a $10,000 investment in NVDA during the IPO would give you 6,084 shares today. At the current price of $485.09, that would be worth $2.95 million — a 29,512% investment return in total!
To learn more about how profitable an IPO investment would have been for Netflix (NASDAQ:NFLX), you can check out our article here.
Source: https://coincodex.com/article/31999/heres-how-much-a-10000-investment-in-nvidia-stock-nasdaqnvda-in-1999-is-worth-today/