It's no secret that Nvidia (NVDA 1.25%) has been an incredible investment, especially during the artificial intelligence (AI) boom. The chipmaker's graphics processing units (GPUs) are in high demand from tech companies building out their data centers.
Even with that in mind, the amount of money an early investor could've made in Nvidia is still hard to believe.
Image source: Nvidia.
How much a $1,000 Nvidia investment would've grown
If you'd invested $1,000 in Nvidia stock 10 years ago and held on to your shares until today, you'd be sitting on $255,740 (as of Jan. 10). That's over a quarter of a million from one winning stock. An identical investment in the S&P 500 would be worth $4,309.
There are several valuable lessons to be learned from Nvidia's success. You can get life-changing results from investing in winning stocks, and it's definitely possible to find them as a retail investor. The Motley Fool first recommended Nvidia over 20 years ago, in April 2005.
NASDAQ: NVDA
Key Data Points
It's not just about finding winning stocks, though. You also need to stick with them through the highs and the lows, provided you still believe they're quality companies. Let's revisit the hypothetical of investing $1,000 in Nvidia 10 years ago. After five years, your investment would've been worth $18,320. You might have been tempted to take your profits, and that would mean missing out on the $237,420 in returns Nvidia delivered over the next five years.
Nvidia almost certainly won't be delivering those kinds of results anymore, but it remains a sound investment due to its role as one of the leading AI companies. The chipmaker serves as a solid foundational stock in a portfolio. You may also want to invest in some smaller stocks that you think have the potential to be the next Nvidia.
