Nvidia (NVDA 1.10%) has become a household name due to its connection with artificial intelligence (AI), and also its astronomical stock market returns. The company has been growing at sky-high rates, along with its profits, and it still looks like it has a long growth runway.
If you had invested just $100 in the stock 25 years ago, you'd have a lot of money today.
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More shares, higher prices
Nvidia went public in Jan. 1999 at $12 per share. After gaining more than 700% and reaching $100 per share, the company executed its first stock split by June 2000. Even though there was no AI mania back then, it was already impressing investors with chips largely catering to the video game industry. Nvidia has split its stock five more times since then.
Between all of its stock splits and its small dividend, Nvidia stock has turned $100 into more than $60,000 over the past 25 years.
Data by YCharts.
Just in the past three years, the stock has delivered a total return of more than 900%, turning a $100 investment into a little over $1,000 today.
The market appears to be on the fence about where Nvidia is headed from here, and it's waiting with bated breath for the company's second-quarter earnings report on Aug. 27. It's unlikely that over the next 25 years, a $100 investment in the chip giant is going to see the same 62,000% total return it did over the past 25 years, but Nvidia could still be a winning growth stock in a diversified portfolio.
