#ShareYourUSStocksWinNvidia

$NVDA
A Stock That Created a Legend – What Storms Did It Experience?

On January 22, 1999, NVIDIA officially went public on Nasdaq at $12 per share. Since its IPO, this once-unknown chip company has grown into one of the world's most valuable technology giants. Analysis shows that NVIDIA's cumulative total return since its IPO is close to 600,000 times.

Most astonishing is its long-term return – over the 20 years ending in 2024, NVIDIA's stock achieved a compound annual return of 39%, making it the undisputed champion of returns among S&P 500 constituent stocks.

But this brightest star has also experienced moments that broke the hearts of countless investors.

In 2002, NVIDIA suffered its most devastating stock market crash in history. From January to October, its stock price plummeted by 90% in just nine months. Nvidia's market capitalization shrank from approximately $11 billion at the beginning of the year to just $1 billion. This plunge was far more severe than the overall decline in the semiconductor industry—the Philadelphia Semiconductor Index only fell by 65% during the same period. What made investors even more disheartened was that, from its trough in October 2002, it took Nvidia a full 4.1 years, until November 2006, to regain its previous high. In contrast, the median time for the entire US stock market to rebound from a trough to a previous high is only 2.5 years.

Looking back at its stock price history, this wasn't the only time it had plummeted. From 2007 to 2009, the global financial crisis swept through the market, and Nvidia's stock price fell from a high of nearly $40 to around $6, a drop of over 80%. During the market downturn in 2022, the stock price also experienced a significant correction of nearly 70%.

That's the nature of investing—behind long-term, substantial returns often lie unpredictable and lengthy fluctuations and mental and physical challenges.

Looking back at history, this stock that created a legend has almost always been built on ruins. Those unimaginable drops have ultimately become legendary over time. And you, can you withstand such turbulence?

This is for informational purposes only and does not constitute financial advice.