Nvidia, the American tech giant, has experienced an impressive market value increase since 2019, with a 2,000% rise in its stock. This meteoric growth has resulted in significant financial changes for those investors who purchased shares before the pandemic, transforming their lives. As of 2024, Nvidia's shares have doubled in value, solidifying its position as the best-performing company in the S&P 500 index on Wall Street. Despite recent market fluctuations that have caused some investor caution, Nvidia remains a dominant player in the tech sector.

 

The power behind the surge

Nvidia's meteoric growth is largely due to the crucial role its chips play in developing artificial intelligence systems. As AI's popularity has skyrocketed in recent years, investors have increasingly sought to acquire Nvidia shares, anticipating the company will continue leading the global adoption of these advanced technologies.

Even with a 9% correction from its June peak, Nvidia's stock has grown 700% since the end of 2022. This impressive performance adds to a total return of over 500,000% since its initial public offering in 1999. Nvidia's market capitalization currently approaches $3 trillion (around €300 billion), solidifying its position as a giant in the tech industry.

 

Challenges along the way

Despite its current success, Nvidia has faced significant volatility. In 2022, the company suffered a 50% drop in its stock value due to rising interest rates that impacted the entire tech sector. Additionally, in 2008 and 2002, Nvidia experienced substantial setbacks of 76% and 83%, respectively.

Today, with a stock value of approximately €130 per share, Nvidia has managed to recover and significantly surpass these challenges, reaffirming its position as one of the most sought-after stocks in the global market. Investors who held their positions over the years, like one who purchased shares worth €65,000 during its IPO, have seen their investment grow to €15 million. These types of stories reinforce the perception of Nvidia as an investment that has transformed the financial landscape for many.