Since its IPO in January 1999, NVIDIA (NASDAQ: NVDA) has established itself as one of the most successful companies in the world. It has been particularly adept at adapting its technology to expand into new markets.
The company pioneered graphics processing units (GPUs) that revolutionized the gaming industry, turning square figures into realistic images. The secret to its success was parallel processing, which allowed the chips to perform a multitude of mathematical calculations simultaneously. Nvidia processors are now used for product design, autonomous systems, cloud computing, data centers, artificial intelligence (AI), and more.
The ability to adapt its technology has been a boon for shareholders. Even if investors did not participate in the IPO, Nvidia stock fell below its issue price on numerous occasions in early 1999. For investors lucky enough to get shares at the IPO price of $12 (or less ), the shares have obtained a return of 493,940%.
Multiplying like rabbits
While a single action may seem inconsequential at first glance, an action of the good Stocks can have a big impact on an investor’s success. In the case of Nvidia, the company’s performance and rising stock price have resulted in numerous stock splits, turning one stock into many more.
Here’s a list of Nvidia’s stock splits over the years:
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Split 2 for 1, June 27, 2000
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Split 2 for 1, September 12, 2001
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Split 2 for 1, April 7, 2006
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Division 3 for 2, September 11, 2007
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Division 4 for 1, July 20, 2021
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10 for 1 split, June 10, 2024
As a result of the multiple stock splits, an investor who bought just one share of Nvidia around its initial public offering in 1999 would now be the proud owner of 480 shares.
However, it took a lot of discipline and self-control to sustain Nvidia for over 25 years and reap this windfall. The stock has lost more than half its value on numerous occasions, sending fair-weather investors scrambling to get out.
That said, consider this: a $1,000 investment in Nvidia made in early 1999 would now be worth more than $4.9 million.
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Danny Vena has positions at Nvidia. The Motley Fool has positions and recommends Nvidia. The Motley Fool has a disclosure policy.
If You Bought 1 Share of Nvidia in Its IPO, Here’s How Many Shares You’d Own Now was originally published by The Motley Fool