If You Had Invested in NVIDIA Right After its IPO

Founded in 1993, American technology company Nvidia Corporation (NVDA) has grown to become one of the industry leaders in manufacturing graphic processing units for computer and gaming devices as well as Artificial Intelligence and enterprise computing. The company benefited from the artificial intelligence and cryptocurrency markets in 2017 with its shares rising 92%, but the stock has fallen 30 percent in 2018 as of November 22.

The company went public in January 1999, with its shares priced at $19.69 each. An investment of $1,969 would have bought you 100 shares, but after four stock splits you would now be the owner of 1,200 NVDA shares, and your initial capital with reinvested dividends would now have grown to $291,652 as of November 1, 2018. Check NVDA's most recent share price here. 

Here is how that Happened:

While the company’s growth has fueled the astronomical gains for its stock price, stock splits and dividends also gave a big bump to initial investors.

2000 Two for One Stock Split

A little over a year since its listing, the company executed its first stock split, offering two shares for one held by investors. That means an initial 100 shares would now become 200 shares. At the close price of $71.25, the $1,969 investment would now be worth $14,250, a 623% growth.

2001 Two for One Stock Split

Just a year later, Nvidia decided to split its stock again, offering a 2:1 split. The number of shares held would now increase to 400, and at the price of $33.29, the investment would now be worth $13,596, a little lower than the previous year but still an impressive 590% return on the initial $1,969 investment.

2006 Two for One Stock Split

In 2006, the company announced another 2:1 stock split. The number of shares now increase to 800 and at a price of $30.53 apiece, the investment is now worth $24,424 and spectacular 1,140% gain over the initial $1,969 investment.

2007 Three for Two Stock Split

The last of the stock splits so far, Nvidia offered a 3:2 split which means the 100 shares bought at the time of the IPO are now 1,200 shares. At a $34.58 price, the initial investment of $1,969 would now be worth $41,496, a 2,007% jump.

Dividends

Nvidia paid out its first dividend in 2006, and the next payout was made six years later in 2012. Since November 2012, the company has declared a dividend every quarter, adding to the value of the investment.

Present-Day Value from the NVDA IPO Investment

If you had invested in 100 shares, an initial investment of $1,969, that money, including reinvested dividends, would have grown to $291,652, as of November 1, 2018, a whopping 14,712% return on investment. Since Nvidia's share price changes daily, the returns will also. Refer to NVDA's quote page for the latest performance metrics.