How much would I have if I invested $10,000 in Nvidia?
Then came the generative AI explosion in 2023 and 2024. At the end of last year, your initial $10,000 position in Nvidia would have grown to over $12 million. If you continued to hold on to all of your shares, your investment would today be worth (drum roll, please)... over $30 million.
| Company | Ticker | Value of $10,000 now |
|---|---|---|
| Nvidia | (NVDA) | $2,224,943 |
| Super Micro Computer | (SMCI) | $400,365 |
| Advanced Micro Devices | (AMD) | $396,511 |
| Fair Isaac | (FICO) | $237,598 |
5-years: A $1,000 investment in Nvidia five years ago has compounded at 97.8 percent annually and would be worth $30,270.64 today. 10-years: A $1,000 investment in Nvidia 10 years ago has compounded at 74.5 percent annually and would be worth $261,490.87 today.
Assuming Nvidia does hit $184.5 billion in revenue in fiscal 2027, its top line would have increased at a compound annual rate of 45%. If the semiconductor giant's growth tapers off in the two that follow years to, let's say 25% a year, its revenue could reach $288 billion after five years.
| Period | Return | Benchmark |
|---|---|---|
| 6 months | 98.26% | 13.74% |
| 1 year | 159.15% | 21.39% |
| 5 years (annualized) | 95.17% | 13.11% |
| 10 years (annualized) | 75.12% | 10.77% |
Have a look at the above chart and you'll see that if you invested $1,000 in Nvidia stock 20 years ago, it would today be worth more than $760,000. The same amount invested in the S&P 500 would theoretically be worth about $7,000 today.
Then came the generative AI explosion in 2023 and 2024. At the end of last year, your initial $10,000 position in Nvidia would have grown to over $12 million. If you continued to hold on to all of your shares, your investment would today be worth (drum roll, please)... over $30 million.
Hence, based on current estimates, the chances of Nvidia's share price crossing $1,000 in the next decade appear slim. These projections, however, can change in case Nvidia makes even more dramatic advances in AI technologies in the coming years.
Nvidia stock's longer-term performance is phenomenal
That's more than 100 times the S&P 500 index's return of 230%. Put another way, a $1,000 investment in Nvidia stock a decade ago would now be worth more than $250,000. A stock's past performance is no guarantee of its future performance.
Based on analyst ratings, Nvidia's 12-month average price target is $140.85. Nvidia has 9.66% upside potential, based on the analysts' average price target. Nvidia has a consensus rating of Strong Buy which is based on 37 buy ratings, 4 hold ratings and 0 sell ratings.
Could Nvidia top $1000 a share in 2026?
How Nvidia's Post-Split Stock Could Rise Tenfold. In the year since Nvidia's boffo Q1 FY 2024 report released in May 2023, the company's stock has risen 248%. Nvidia stock — after splitting 10-for-1 early in June — could rise from $100 to $1,000 by 2026.
There's an easy answer to this question: It's absolutely not too late to buy Nvidia stock.
In a chat with Real Vision that published Wednesday, the analyst touched on another of her predictions, that Nvidia is headed for a $10 trillion market cap by 2030. That would mean a return of over 250% by 2030, she said.
The closing price for NVIDIA (NVDA) in 2000 was $0.13, on December 29, 2000. It was up 38.6% for the year. The latest price is $121.11.
The closing price for NVIDIA (NVDA) in 2017 was $4.79, on December 29, 2017. It was up 86.1% for the year. The latest price is $129.24.
| Period | Period Low | Performance |
|---|---|---|
| 3-Year | 81.43 +125.65% on 01/02/23 | +0.92 (+0.50%) since 07/19/21 |
| 5-Year | 81.30 +126.01% on 03/16/20 | +86.60 (+89.14%) since 07/22/19 |
| 10-Year | 14.20 +1,194.01% on 10/01/14 | +168.10 (+1,074.16%) since 07/01/14 |
| 20-Year | 1.29 +14,166.30% on 08/01/06 | +181.80 (+9,342.45%) since 07/01/04 |
A $20,000 investment made in the semiconductor giant 10 years ago would be worth more than $3.4 million today -- up by around 170 times in value. It is also worth noting that the company has taken less than a decade to turn a $20,000 investment into precisely a $1 million.
The table below shows the present value (PV) of $1,000 in 20 years for interest rates from 2% to 30%. As you will see, the future value of $1,000 over 20 years can range from $1,485.95 to $190,049.64.
Even more impressive, the stock has delivered a return of more than 1,160% since Satya Nadella became the company's CEO in February 2014. That means that if you invested $1,000 on the day Nadella took over on Feb. 4, 2014, your investment would now be worth more than $12,570.
The legendary investor typically avoids stocks that are out of his wheelhouse. And tech isn't his strong suit. Unsurprisingly, Buffett doesn't own a single share of Nvidia (NASDAQ: NVDA).
What if you invested $1000 in Nvidia 5 years ago?
5-years: A $1,000 investment in Nvidia five years ago has compounded at 97.8 percent annually and would be worth $30,270.64 today.
NASDAQ: NVDA
So, despite its meteoric rise since last year, the AI market still has plenty of room to run, with Nvidia well-positioned to keep seeing major gains and creating millionaires.
| Year | Prediction | Change |
|---|---|---|
| 2025 | $ 212.65 | 80.23% |
| 2026 | $ 383.27 | 224.83% |
| 2027 | $ 690.76 | 485.44% |
| 2028 | $ 1,244.97 | 955.15% |
Bank of America analyst Vivek Arya called Nvidia a "top pick," reiterating his buy rating on the stock and raising his price target to $1,500. That represents potential gains for investors of 37% over the coming year compared to the stock's closing price on Friday.
Financial Strength
Nvidia is in outstanding financial health. As of April 2024, the company held $31.4 billion in cash and investments, as compared with $9.7 billion in short-term and long-term debt. Semiconductor firms tend to hold large cash balances to help them navigate the cycles of the chip industry.
