Nvidia Corporation (NVDA) has become one of the largest businesses around the globe, with an estimated market capitalization of $3.4 trillion. This is a staggering amount of money, making it the second largest company within the United States, surpassing corporate giants such as Warren Buffet’s Berkshire Hathaway and Johnson & Johnson.
However, the climb to the top wasn’t immediate. It was a modest company at beginning but gradually built its name over the years by introducing revolutionary technology.
Let’s go deep into the story of Nvidia’s rise beginning with its inception through its massive growth in stock, and then consider the way that a modest stake in NVDA stock in the past could have been a huge fortune in the present.
Nvidia’s Origins: From a Startup to a Global Powerhouse
Nvidia was established in the month of April 1993 by three visionaries: Jensen Huang Chris Malachowsky, and Curtis Priem. In the early days, computers were rapidly evolving and the co-founders realized the huge potential in the field of graphics-based computing.
At first, the company was concentrated on making graphics cards specifically for video games. However, the vision for the future was more expansive. Nvidia set out to build solid foundations in research and development, which would later expand to other areas.
In 1999, Nvidia had launched its first GeForce graphics card, a device that was to become the benchmark for high-performance gaming as well as visual processing. The was the same year that Nvidia was listed on the stock exchange with an first publicly traded company (IPO) which marked the beginning of its career to become a publicly-traded corporation.
Nvidia’s Evolution: Beyond Just Gaming
While Nvidia was founded in the beginning on gaming graphics cards it never stopped growing. It was constantly exploring new markets and invested in the latest technology that would later revolutionize computing.
One of the most significant breakthroughs occurred in the field of cryptocurrency.
In the late 2010s Nvidia’s graphic processing units (GPUs) became the top option for cryptocurrency mining. The intricate mathematical problems required in mining Bitcoin as well as other currencies could be solved with high-performance GPUs. This led to a rise in the demand for Nvidia’s hardware exploded which led to an exponential growth.
Nvidia wasn’t only a gaming firm, it was driving its future digital asset portfolio.
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Unbelievable Growth: How Nvidia Rewarded Long-Term Investors
The growth in the financials that has been experienced by Nvidia has been nothing short of spectacular.
Between 1999 to 2024, the company’s revenues grew by 385 times.
Net income of the company increased by 7,200% during the same time.
To put this in perspective to put this into perspective, if you had made a bet of 10,000 dollars into Nvidia stocks in November of 2004 the investment would be worth $12.77 million. That’s a staggering annual growth rate of 43% over the last 20 years.
Nvidia’s stock also experienced multiple splits of its stock that made it more available to investors.
Nvidia’s Stock Splits: What You Need to Know
Stock splits are an corporate procedure in which a business splits its existing shares into a number of new shares. Although this doesn’t alter the value of all shareholder’s assets, it will increase the amount of shares they own, and reduces the value per share.
Nvidia has been involved in several stock splits throughout the time:
- 2000
- 2001
- 2006
- 2007
- 2021
- 2024
Most recently, the 10-for-1 split was completed on June 7, 2024. This is a reference to:
If you had one share of $500, you now own 10 shares that are worth $50 each.
The total amount of the investment is unaffected but the lower price per share makes it accessible to new investors.
Why Companies Like Nvidia Split Their Stock
A stock split may have multiple advantages:
- The lower price of shares allows individuals to purchase shares.
- In circulation more shares allows for more efficient buying and selling.
- A stock split could draw new investors and create more interest in the market.
- While splits of stock don’t alter the overall value of a business however, they can provide a sense of movement on the stock market.
Conclusion :
The rise of Nvidia from a modest graphics card maker to an industry leader in technology is a testimony to its ability to innovate, adapt and vision. It has not only taken over the gaming industry, but made its mark in the fields of artificial intelligence, cryptocurrency as well as high-performance computing.
For investors who are looking for a long-term investment, Nvidia has been one of the most profitable stocks of the past. With the constant advancements in AI cloud computing and even data centers, Nvidia’s success story isn’t finished yet.