The Nvidia Investment Journey: A Roller Coaster of Returns The Nvidia Investment Journey: A Roller Coaster of Returns

Written By Michael Gary Scott

Holding onto stocks as they ride the roller coaster of the stock market isn’t for the faint of heart. Witnessing gains soar only to plummet can be a wild ride for many investors. But for those with the grit to stay the course, holding onto stocks in premier companies over the long haul can yield substantial returns that could potentially change lives. And leading the pack in this regard is the tech powerhouse, Nvidia (NASDAQ: NVDA).

The Nvidia Stock: A Tale of Surging Fortunes

When reflecting on the past five years of Nvidia’s journey, one can appreciate the tumultuous yet rewarding path the stock has traversed. The painstaking years dedicated to developing cutting-edge computing hardware and software for revolutionary artificial intelligence (AI) applications are now paying off in dividends for steadfast investors.

Imagine this: a $2,500 investment in Nvidia half a decade ago would now be valued at an impressive $44,900. But this windfall didn’t come easy. Most of this meteoric rise was witnessed in the last year and a half.

The remarkable 78% annual returns far surpass the meager 10% average annual return of the S&P 500 index over nearly a century. However, this climb was far from smooth sailing. Over the five-year period, there were several occasions when Nvidia stocks plummeted by over 25% from previous highs, including a significant 65% drop in 2022.

NVDA Chart
NVDA data by YCharts.

Today, Nvidia’s powerhouse computing chips and software are in high demand, triggering an exponential surge in revenue and earnings. The future of Nvidia stock in 2025 remains uncertain, but for long-term investors, these fluctuations shouldn’t trigger alarm bells. As long as Nvidia keeps blazing the trails of innovation, the stock merits a coveted spot in any well-rounded investment portfolio.

See also  Insight on US Pharma Giant Bristol-Myers Squibb What's Happening to Bristol-Myers Squibb Stock Today?

Is Nvidia Worth a $1,000 Investment Today?

Before diving into Nvidia stocks, ponder upon this:

The expert analysts at Motley Fool Stock Advisor recently pinpointed what they believe are the top 10 stocks worth investing in right now… and Nvidia didn’t clinch a spot. The 10 selected stocks have the potential to yield enormous returns in the years ahead.

Stock Advisor provides a user-friendly roadmap to investing success, offering guidance on portfolio construction, regular insights from analysts, and two fresh stock recommendations each month. Since 2002, the Stock Advisor service has outperformed the S&P 500 returns by over threefold*.

Explore the 10 stocks

*Stock Advisor returns as of April 15, 2024

Howard Smith has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.