Super comeback! This is what 1,000 euros became with Nvidia
Nvidia has made a meteoric comeback on the stock market. The reasons: a de-escalation of the tariff dispute and an AI deal between the Americans and Saudi Arabia. It's now just a stone's throw from its record high. Nvidia is one of the best investments of all time – anyone who invested just €1,000 has made a fortune.
Jensen Huang was already a high achiever as a teenager. He skipped two grades in school, so he began studying electrical engineering at the early age of 16. Huang eventually came to the conclusion that images would become increasingly important in computers in the future, for example, in games, simulations, or medicine. In 1993, he and two friends founded Nvidia with the vision of becoming a leading specialist in graphics processors.
Huang is still CEO; no other head of a major tech company has been in office longer than the man in the leather jacket that has been his trademark for years. The 62-year-old is cool but friendly, and even after all this time, he's not tired or satiated. Huang is passionate about his company and the megatrend of artificial intelligence.
For months, however, no spark of Huang's fire caught on with investors. But suddenly, the stock is back on full throttle, gaining 55 percent since the sell-off low on April 7. Thanks to the rally, the outlook for 2025 is now positive.
Nvidia's long-term performance is brutal. Anyone who invested just €1,000 in the IPO in January 1999 now owns €5.9 million. A €1,000 investment in the Nasdaq 100 yielded a mere €13,000, while a €7,800 investment in the S&P 500 yielded €1,000.
Whether this incredible performance will continue in the short term depends on the first-quarter figures, which Nvidia will release after the market closes on May 28. Analysts surveyed by Bloomberg expect revenue to increase by 66 percent to $43.2 billion, and net profit to have risen by 47 percent to $22.4 billion.
Given its strong growth, Nvidia is still moderately valued at a P/E ratio of 31. In the medium term, the company is likely to be ahead in terms of market capitalization.
AI is also one of many topics in the OMR podcast with AKTIONÄR publisher Bernd Förtsch:
Note on conflicts of interest: The board member and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has directly and indirectly entered into positions in the following financial instruments or derivatives related to them mentioned in the publication, which may benefit from any price development resulting from the publication: Nvidia. Nvidia shares are held in a real depository of Börsenmedien AG.
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