If you bought Nvidia stock at the IPO, here’s how many shares you’d own now

Since its IPO in January 1999, Nvidia (NASDAQ: NVDA) established itself as one of the most successful companies in the world. It has been particularly adept at adapting its technology to expand into new markets.

The company pioneered graphics processing units (GPUs) that revolutionized the gaming industry, turning boxed figures into lifelike images. The secret to its success was parallel processing, which allowed the chips to perform a multitude of mathematical calculations simultaneously. Nvidia processors are now used for product design, autonomous systems, cloud computing, data centers, artificial intelligence (AI), and more.

The ability to adapt its technology has been a boon for shareholders. Even though investors didn’t get into the IPO itself, Nvidia’s stock fell below its issue price several times in early 1999. For investors lucky enough to get shares at (or below) the IPO price of $12, the stock bounced back with 493,940%.

Breeding like rabbits

While a single share of stock might seem unimportant at first glance, a single share of stock correct stocks can have a huge impact on an investor’s success. In Nvidia’s case, the company’s performance and rising stock price have led to numerous stock splits, turning one stock into many more.

Here’s a list of Nvidia’s stock splits over the years:

• Split 2 for 1 June 27, 2000

• Split 2 for 1 September 12, 2001

• Split 2 for 1, April 7, 2006

• Split 3 for 2 September 11, 2007

• Split 4 for 1, July 20, 2021

• Divide 10 for 1, June 10, 2024

As a result of multiple stock splits, an investor who bought just one share of Nvidia stock near its 1999 IPO would now be the proud owner of 480 shares.

However, it took a lot of discipline and self-control to keep Nvidia going for more than 25 years and reap this exception. The stock has lost more than half of its value on numerous occasions, sending bullish investors scrambling for exits.

That said, consider this: A $1,000 investment in Nvidia made in early 1999 would now be worth more than $4.9 million.

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Danny Vena has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

If You Bought Nvidia Stock at the IPO, Here’s How Much Share You’d Own Now was originally published by The Motley Fool