Finance
If You Invested The Average Tax Return Of $2,812 In Nvidia Stock Last Year, Here’s How Much It Would Be Worth Today
Last tax season, the IRS issued nearly 95 million refunds, totaling more than $266 billion. From May 12, 2023, the average tax refund amounted to $2,812. If you invested this amount in Nvidia stock a year ago, you might be curious about the current value of your investment.
NVIDIA Corp. (NASDAQ:NVDA) has been through an extraordinary experience over the past five years, especially since the beginning of 2024. The share does increased 186% since May 2023, driven by strong demand for AI chips, and its market value has increased from $1 trillion to $2.7 trillion.
As of May 30, 2024, the company’s share price was an impressive $1,150. If you had invested your $2,812 tax refund in Nvidia stock a year ago when the stock price was around $290, you could have bought about 9.7 shares.
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Fast forward to today. Those 9.7 shares would now be worth about $11,155, meaning your initial investment of $2,812 would have grown by $8,343 in just one year. That is an impressive return of almost 300%.
Nvidia’s extraordinary growth
Last fiscal year, the chipmaker generated nearly $61 billion in revenue, a significant increase from about $27 billion the year before. Even more impressive is the company’s most recent quarterly report, which showed revenue of $26 billion – a massive 262% increase compared to the same quarter last year.
It’s unusual for a company as big as Nvidia to grow so quickly. However, Nvidia has defied the odds and its incredible growth has given it a boost market value to about $2.7 trillion, more than Amazon’s $1.84 trillion and Tesla’s $563.84 billion combined.
This tremendous growth shows that Nvidia is standing out in the business community and offering significant opportunities for those who invested early.
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Now Nvidia’s $2.7 trillion market cap is just 4% lower than Apple’s $2.9 trillion valuation and 11% of Microsoft’s $3.2 trillion, putting Nvidia on the brink of becoming the world’s most valuable company to become.
Analysts suggest caution
Despite all the positive signs for Nvidia, analysts suggest that investors shouldn’t put all their money into just one stock. They recommend diversifying investments by spreading money across different stocks instead of betting everything on one company.
“As the majority of AI workloads in the cloud move from training to inference, Nvidia’s dominant market share position will be challenged. Most inference use cases do not require the depth/amount of computing provided by Nvidia’s best GPUs,” says Lucas Keh, an analyst at Third Bridge explained.
Is Nvidia’s extreme growth ending, or is it just the beginning? Time will tell. That doesn’t mean you shouldn’t save or even invest your tax return. From Tokyo to New York, stock markets are seeing it unprecedented growthand you may be leaving money on the table by not investing.
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This article If You Invested The Average Tax Return Of $2,812 In Nvidia Stock Last Year, Here’s How Much It Would Be Worth Today originally appeared on Benzinga.com
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