As an investor, you'd have to be living under a rock not to have heard of the jaw-dropping run that US tech share and semiconductor manufacturer NVIDIA Corporation (NASDAQ: NVDA) has been on over 2023 to date.
Nvidia shares closed at $418.76 each in last night's US trading session. That's a far cry from the US$143.15 the company started the year at. This price difference represents a hefty gain of 192.53% since the start of 2023. Check it out below:
Until May, Nvidia shares were already on a spectacular run, more than doubling in value. But it was the quarterly earnings report in May that really lit a fire under Nvidia stock. As we covered at the time, investors sent the company (which has a market capitalisation of roughly US$1 trillion, mind you) almost 25% higher in one session.
This was sparked by the revelation that Nvidia was able to increase its net income by 26% on a year-on-year basis. The company also fired up investors with its projection that it would be able to bring in revenues of US$11 billion over the second quarter of the year. That would be a whopping 53% rise over its first quarter numbers.
How much would $3,000 in Nvidia shares be worth today?
So we know why Nvidia shares have had such a spectacular year so far. But how much exactly would Aussie investors have made if they were lucky enough to buy some Nvidia stock at the start of the year?
Let's assume an Aussie investor picked up $3,000 worth of Nvidia shares back at the start of the year. If we assume they paid the price of US$143.15, that $3,000 would have bought our investor just over US$2,000. This would, in turn, have enabled the purchase of 14 Nvidia shares, with a little change left over. For simplicity's sake, we'll leave out currency movements here.
Today, those 14 Nvidia shares would be worth US$5,862.64 or $8,771.10 in our currency.
Not a bad return for six months of waiting.
Let's see if this spectacularly performing US tech share can keep up its momentum for the rest of the year.
