Nvidia (NVDA 1.53%) has unquestionably been one of the market's greatest success stories over the past decade. Riding huge semiconductor demand for the artificial intelligence (AI) buildout, it has become the biggest company in the world, with a market cap of around $4.6 trillion.
It's also delivered massive returns for investors. Investors lucky enough to have bought the stock 10 years ago and ridden out the volatility would be sitting on many times their original investment.
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On Feb. 19, 2016, Nvidia was trading at a split-adjusted price of around $0.76. Ten years later, it's trading at $187.95. That translates to a total return over that 10-year time frame (with minor dividends included) of around 25,440%!
NVDA Total Return Price data by YCharts
That means a $1,000 investment in Nvidia 10 years ago would be worth $255,400. That translates to an average annual return of roughly 74%.
Nvidia investors, however, have run into something slightly unusual over the past six months -- a lack of huge returns!
NASDAQ: NVDA
Key Data Points
While the stock is still up 8% over that time, it's a far cry from what they have become accustomed to. It's important to remember, though, that the AI revolution is still in its early stages. Nvidia's chip demand should remain robust for the foreseeable future, and that could lead to solid returns for years to come, although maybe not to the level we've seen over the past decade.
