This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
Key Points
- Nvidia has been a huge winner over the last five years.
- Nvidia's leadership in GPU technologies has translated to huge valuation gains.
Nvidia (NASDAQ: NVDA) has been the most important company when it comes to pushing the artificial intelligence (AI) revolution forward. While many leading tech players develop advanced AI software, Nvidia has a clear-cut leadership position when it comes to designing the advanced graphics processing units (GPUs) that serve as the foundational hardware used for training and powering AI applications.
Thanks to the surge in demand and excitement surrounding AI technologies, Nvidia has seen massive sales and earnings growth over the last five years. In turn, these performance wins have helped power explosive gains for the company's share price.
What would a $10,000 investment in Nvidia five years ago be worth now?
Nvidia has posted a total return of roughly 1,290% over the last five years. That means that a $10,000 investment made exactly half a decade ago would now be worth more than $139,470.
With a market capitalization of roughly $4.34 trillion, Nvidia currently ranks as the world's largest company by a substantial margin. While it's impossible to predict exactly where the AI hardware market will head over the next five years, it looks like Nvidia is poised to retain a strong leadership position in the near term.
In addition to its market-leading strengths in the GPU category, the company looks poised to continue broadening its strengths in software and service categories While it would be a tall order to expect Nvidia to repeat its stock performance over the last five years again over the next half decade, it wouldn't be surprising to see the company significantly outperform the broader market across the stretch.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
