The chipmaker has been the poster child of the artificial intelligence boom.
Spending on artificial intelligence (AI) infrastructure has become a major contributing factor to the overall growth of the U.S. economy in recent times. And there’s been no bigger beneficiary than Nvidia (NVDA +0.81%).
If you had bought $1,000 of Nvidia shares exactly one year ago, here’s how much your position would be worth today.
Image source: Nvidia.
Nvidia is still beating the market
In the past 12 months, Nvidia shares produced a total return of 30% (as of Dec. 12). So, if you purchased $1,000 of the stock in mid-December 2024, you’d have $1,300 right now. Over a five-year stretch, its total returns exceeded 1,200%.
By comparison, the S&P 500 returned 14% during the last year.
Today’s Change
(0.81%) $1.43
Current Price
$177.72
Key Data Points
Market Cap
$4.3T
Day’s Range
$174.90 – $178.49
52wk Range
$86.62 – $212.19
Volume
149M
Avg Vol
192M
Gross Margin
70.05%
Dividend Yield
0.02%
The stock’s valuation is attractive
There are definitely investors out there who have remained on the sidelines watching Nvidia take off like a rocket ship. Thankfully, it’s not too late to buy this leading AI stock. Its current forward price-to-earnings ratio of 23 is compelling for a business that grew its net income by 644% from its fiscal 2022 through its fiscal 2025 (which ended Jan. 26, 2025).
Advertisement
Of course, the bears will point to the assertion that the AI market is in a bubble that’s ready to burst. This is a near-term risk that would pressure Nvidia’s share price.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.