If you had invested 1000 in Nvidia stock at the beginning of 2024 heres how much you would have now
Semiconductor behemoth Nvidia has continued its extraordinary financial journey since entering the artificial intelligence (AI) sector, which has seen a massive surge in investor interest and capital inflow. This move has propelled Nvidia to become the world’s most valuable company, surpassing technology giants such as Microsoft and Apple.
As a result, Nvidia’s stock has proven to be highly lucrative for investors who bet on the AI sector, as it has consistently traded in the positive territory throughout 2024. Year to date, Nvidia has seen a remarkable increase of 181.46%.
To illustrate the potential returns, Finbold examined the outcome of a $1,000 investment in Nvidia stock at the beginning of 2024. Given the stock’s 181.46% surge, this investment would now be worth $2,814.60, resulting in a profit of $1,814.60.
The significant rise in Nvidia’s market value over the past year has underscored the frenzy on Wall Street fueled by the promise of AI technology. Notably, Nvidia’s rally has contributed to the record highs seen in the S&P 500.
Apart from the bet on AI, Nvidia’s growth and increased interest can be attributed to the decision to carry out a 10-for-1 stock split on May 22. Since then, the share price has surged by over 40%, outperforming the S&P 500. This stock split has made Nvidia’s stock more accessible to a wider range of investors, further fueling its growth.
Currently, Nvidia’s stock is trading at $135.58, having risen by over 3.5% in the last 24 hours. The stock appears to be maintaining its momentum, with pre-market trading indicating a 3.3% increase, reaching the $140 mark.
Projections suggest that Nvidia will open above $140 before the market opens on June 20, suggesting a pre-stock split valuation of $1,400 for the stock. The most optimistic price target for Nvidia among analysts is $200. If the stock were to reach this valuation, its market capitalization would be an astounding $4.9 trillion.
However, despite the ongoing rally, concerns have been raised that the current hype surrounding AI could wane if there are signs of reduced spending on AI technologies. These concerns have been amplified for Nvidia as technical indicators have indicated overbought conditions and the potential for a crash, with the stock’s Relative Strength Index consistently surpassing the critical 70 mark.
