By now, many ASX investors would make the connection between 'NVIDIA Corporation (NASDAQ: NVDA) stock' and 'huge winner'. Nvidia's gains over the past few years have been nothing short of legendary. This semiconductor stock has become nothing less than the most prominent face of the artificial intelligence (AI) boom.
If you hear someone say that they want to 'invest in AI', Nvidia stock will undoubtedly be a first port of call.
Today, Nvidia has a mind-boggling market capitalisation of US$4.37 trillion. It even became the first company in history to cross the US$5 trillion mark last month.
As such, I thought it would be a good time to examine just how much money investors in this company have made over the past three years. The results were truly staggering.
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How much would $10k invested in NVIDIA stock in 2022 be worth today?
On 2 December 2022, Nvidia stock closed at US$16.88 a share. In actual fact, it was actually US$168.80, but the company undertook a 10-to-1 stock split in June last year, so we'll compare apples to apples here.
So if an investor bought US$10,000 worth of shares at that price, they would have ended up with 592.42 shares.
This morning (our time), those same shares closed up shop at US$179.92 each. Our 592.42 shares would therefore have a current value of US$106,587.68 today. You can also add about US$50 for the dividends Nvidia stock paid out over those three years, too.
That makes Nvidia a verified 10-bagger in just three years, with our lucky investor enjoying an average compounded return of 120% per annum.
How to buy Nvidia on the ASX
Many ASX investors will look at that kind of return and wonder how they might get in on that action. Well, firstly, we should keep in mind that this represents the company's past growth, not future potential. At a near US$5 trillion value, it is arguably almost impossible for Nvidia to maintain its 120% per annum growth rate that it has enjoyed since 2022 going forward.
Even so, this is clearly a fast-growing behemoth.
The easiest way to own Nvidia is by buying its shares on the US markets through an ASX broker. But if you don't wish to do that, exchange-traded funds (ETFs) are your next best bet. Any US-oriented ETF or index fund will have Nvidia stock as a top holding. That includes the iShares S&P 500 ETF (ASX: IVV) and the BetaShares Nasdaq 100 ETF (ASX: NDQ). Nvidia makes up about 7.4% and 9.3% of those funds, respectively, right now.
Another option is the Global X FANG+ ETF (ASX: FANG). As we discussed just this morning, FANG is a more concentrated fund exposing ASX investors to ten of the largest US tech stocks. Nvidia is naturally one of those ten, and takes up about 10% of FANG's portfolio at present.
