This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
Thanks to the rise of artificial intelligence (AI), Nvidia (NASDAQ: NVDA) stock has been one of 2024's biggest winners. The company's share price has skyrocketed 155% across this year's trading alone, and continued momentum for sales and earnings could help push its valuation even higher.
As eye-catching as Nvidia's big gains in 2024 have been, its long-term performance is actually far more impressive. The company has shifted from primarily being a designer of graphics processing units (GPUs) for video games to the leading provider of processors for data centers and AI. As a result, the tech pioneer has risen from a market capitalization of roughly $10.3 billion a decade ago to a market cap of more than $3.1 trillion today.
Nvidia stock shows the power of long-term investing
Nvidia stock has delivered a total return of more than 27,000% over the last decade. That means that if you invested $1,000 in the stock 10 years ago and held onto your position, your holdings would now be worth more than $271,000.
NVDA Total Return Level data by YCharts.
Nvidia's incredible success and performance for shareholders is a testament to the benefits of long-term investing. The market-crushing run also shows that it only takes a handful of big winners to power incredible gains for your portfolio.
For example, imagine you had invested $1,000 in nine other companies a decade ago in addition to investing the same amount in Nvidia. Even if each of those nine other stocks went to $0 per share, Nvidia's performance would have meant that you would have scored more than $261,000 in profits on your initial $10,000 investment.
Of course, finding these kinds of massive winners is easier said than done -- but there are stocks on the market right now that could go on to be "the next Nvidia." Even the hottest stocks aren't going to turn $1,000 into more than $271,000 overnight, but giving strong companies time to execute their growth strategies and seize new opportunities can be a path to life-changing wealth creation.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
