The Phenomenal Valuation of Nvidia Since IPO

Nvidia went public on January 22, 1999, offering its shares at $12 and raising $40 million in its IPO, giving the company a valuation of around $625 million at that time. The company's market value has since swelled to $2,661 billion. Nvidia has grown from a graphics card designer to a leading technology firm with a diverse product portfolio. Over the years, the company has undergone multiple stock splits to make its shares more accessible to investors. If you had invested in the company on January 22, 1999, when Nvidia first went public, your investment would have grown by around 278,000%, excluding additional returns from Nvidia's nominal dividend.

Nvidia's stock has seen another remarkable growth in 2024, driven by advancements in AI, data centers, and emerging technologies. Analysts remain optimistic about Nvidia's ability to generate substantial free cash flow. Projections suggest that Nvidia could achieve $100 billion in free cash flow over the next two years, providing ample resources for strategic acquisitions and further R&D investments.

Can this momentum continue? The answer is yes, as long as AI demand continues to unfold.

Note: The chart above already shows the split adjustments.

By: António Costa, Alcral AG Head of Global Investments