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NVDA Surged 255,000% Since Listing in 1999, But a Lot Has Changed Since Then

Last Updated May 25, 2024 3:12 PM
Shraddha Sharma
Last Updated May 25, 2024 3:12 PM

Key Takeaways

  • Nvidia stock witnessed a growth of 255,000% from $12 to $1000+ per share.
  • NVDA’s growth comes from graphics card manufacturing which transitioned to AI and gaming chip dominance.
  • Market value at press time reportedly surpasses Tesla and Amazon combined.

Nvidia has experienced massive growth since its initial public offering (IPO) in 1999. Priced at $12 per share at the time of its IPONvidia’s stock has surpassed the price of $1000 in 2024.

The staggering 255,000% increase is not just a result of luck but a testament to company strategies and macro advancements in technology.

The Nvidia Story: 1999 to 2024

Nvidia started its early days as a graphics card manufacturer. In 2024, it has become a leader in the AI and gaming chip markets, recording a stock price growth of about 255,000%.

NVDA Stock Price Action | Image: Google Finance
NVDA Stock Price Action | Image: Google Finance

In 1993, Chris Malachowsky, Curtis Priem, and Jen-Hsun Huang founded the company that changed the tech market of today. Nvidia, began as a humble graphics card manufacturer and its stock was listed  at $12 in January 1999. However, its innovation with programmable GPUs unlocked possibilities beyond graphics rendering. The move laid the groundwork for Nvidia’s dominance in artificial intelligence (AI) and scientific computing today.

High-performance GPUs also solidified its position in the gaming industry. The advent of AI made the company essential for AI algorithms.

In Q1 2024, Nvidia reported  record quarterly revenue of $26b, an 18% increase from the previous quarter and a staggering 262% rise from 2023. Data center revenue reached $22.6b, up 23% from Q4 and 427% from a year ago.

The results underline that Nvidia GPUs have become integral to the development and deployment of AI applications.

According to Nvidia’s CEO, Jensen Huang, the next industrial revolution is underway, with AI at its core. Huang notes that companies and countries are collaborating with Nvidia to transition traditional data centers into AI factories. This shift is creating multiple multibillion-dollar vertical markets, including consumer internet, enterprise, sovereign AI, automotive, and healthcare sectors, according to the CEO.

Nvidia Success Story With Challenges

Nvidia’s prospects appear bright in 2024 when the AI conversation has taken over the tech sector. But, the company can face several challenges that could impact its future growth trajectory.

Currently, the company’s valuation surpasses the valuation of Tesla and Amazon combined. Therefore, Nvidia’s innovation in GPU architecture, performance, and efficiency is important for its leadership .

The rapid pace of technological development means that Nvidia must consistently stay ahead of the curve. Reports  note that Nvidia faces competition from players like Advanced Micro Devices (AMD) and emerging companies in the AI chip space.

Reuters notes that Microsoft is challenging Nvidia’s dominance in AI chips for data centers. They’ll reportedly offer cloud customers AMD-powered AI platforms, competing with Nvidia’s popular H100 GPUs, and aiming to address current supply chain struggles.

But in terms of launches, Nvidia recently launched its Blackwell GPU as a major advancement in AI.

But, the ongoing global semiconductor shortage is another risk. We can infer  that a shortage could disrupt supply chains and limit Nvidia’s ability to meet the high demand for its products.

Economic changes from 1999 to 2024 are another battleground. The market picked up after the Covid-19 slowdown but reduced consumer spending can impact Nvidia’s sales.

Will Nvidia Continue Growth

Nvidia’s journey from a small graphics card manufacturer to a major AI and gaming chip player is a remarkable success story reflected in its stock prices.The company’s recent financial performance and market presence might make it seem invincible.

However, as Nvidia looks to the future, it must navigate technological advancements, competition, and economic downturns with caution.

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