Nvidia (NVDA) recently overtook Microsoft as the most valuable company in the world, with a market cap of $3.34 trillion. NVDA is trading at $135.58, a 3.51% increase on Wednesday. The company’s value has grown almost nine times in the last two years, largely due to AI (artificial intelligence) product advancements. NVDA’s price has surged by 170% in 2024 alone.
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Nvidia went public in 1999, almost 25 years ago. During its IPO (Initial Public Offering), NVDA was trading for around $12 per share. If you invested $1000 in NVDA in 1999, you would have received 83 shares. How Nvidia stock has undergone six splits, and the original 83 shares would now become 3,984 shares. The price of 3,984 shares today is $540,150.72.
Will Nvidia continue to surge?
The American tech company currently dominates the AI chip market. Investors believe NVDA’s price will continue to rise, given the growing use of AI in daily life. The company’s graphics processor units (GPUs) also play a central part in the gaming and crypto mining industry, both vast and increasingly expanding sectors.
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Demand for GPUs and AI chipsets continues to grow, which could further fuel NVDA’s price. According to Quilter Cheviot technology analyst Ben Barringer, “Demand is showing no signs of switching off.“
According to a note from Bespoke Investment Group, “NVDA’s run has been incredible, but it will need to keep growing from here and stave off competition if its stock is going to keep putting up stellar returns.“
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Nvidia’s journey from $2 trillion to $3 trillion took just 96 days, or about three months. Microsoft took 945 days, and Apple, 1,044 days.