What’s really happening at NVIDIA?

Hey, everyone, Jim Carter here. Welcome back to another episode of the Prompt. Today we're taking a look at Nvidia's latest growth and what it means for investors who saw the potential early on. If you're not familiar with Nvidia, they're a company that's been leading the AI boom. They make the chips that power everything from gaming consoles to self driving cars. And their technology is absolutely crucial for the development of artificial intelligence. But here's the really amazing part. If you had invested just $500 in Nvidia's IPO 25 years ago, you'd be sitting on a fortune today. I'm talking life changing money, and I want to break down exactly how that works. So let's rewind to January 22, 1999. Nvidia goes public with shares priced at $12 each. If you had $500 to spare and decided to take a chance on this little known tech company, you would have been able to buy about 41 shares. Fast forward to today and those 41 shares would have multiplied like rabbits. Nvidia has gone through a series of stock splits over the years in 2000-2001-2006-2007, 2021, and most recently in 2024. Each split essentially doubles or triples the number of shares you own without changing the total value of your investment. So if you had held on to those original 41 shares through all the splits, you'd now be holding a whopping 39,998 shares. And with Nvidia's stock price soaring to new heights driven by the explosion of AI, those shares would be worth. Drumroll, please. Over $32 million. Let that sink in for a minute. $500 turned into $32 million. That's the kind of return that most investors only dream of. Nvidia's success story is about more than just making a lucky bet on a stock. It's about the huge impact of technology and the visionaries who are shaping our future. I mean, Nvidia's chips are the backbone of the AI boom. They're what's powering the chatbots, the virtual assistants, and the recommendation engines that are becoming more and more part of our daily lives. And as AI continues to advance at a fast pace, the demand for Nvidia's technology is only going to grow. In fact, Nvidia's revenue has already skyrocketed from $158 million in 1999 to nearly $27 billion in 2023. And analysts are projecting that number to keep climbing, potentially reaching 117 billion by 2025. But it's not just the financials that are impressive. It's the real world impact. Nvidia's chips are enabling breakthroughs in fields like healthcare, climate research and autonomous vehicles. They're helping some of the biggest challenges facing our world today. It's pretty incredible. And for investors who had the foresight to bet on Nvidia early, let me just say the rewards have been truly staggering. To put it into perspective, Nvidia stock has outperformed the S&P 500 by a mile, delivering an annualized return of 37.3% over the past 25 years, compared to just 10.5% for the broader market. Of course, hindsight is always 2020 and it's easy to look back and wish we had made different investment decisions. But the lesson here is about more than just picking the right st. It's about believing in the power of innovation and having the courage to back the companies that are driving it forward. So as we look to the future, I have no doubt that Nvidia will continue to be a leader in the AI space. With groundbreaking products like their new Blackwell chips, which are expected to take AI capabilities to a whole new level, they're poised for even more growth in the years to come. But more than that, I believe Nvidia's story is a testament to the incredible potential of technology to change our world for the better. And for those who are willing to take a chance on that potential, the rewards can be truly extraordinary. Now, I want to hear from you. What do you think about Nvidia's journey and the future of AI? Do you have any experience investing in tech stocks? I'd love to continue this conversation. So if you're not already a member of my Fast Foundation Slack community, I'd love for you to join. It's a place where we explore all things AI, tech and innovation and I'm always sharing my latest insights and projects. There's plus, it's just an awesome group of curious, forward thinking people. You can join us@fastfoundations.com Slack alright, that's all for now. As always, thank you for tuning in and let's keep exploring the incredible possibilities of AI together. I'll catch you in the next episode.