Nvidia Stock Up Over 350,000% Since 1999 IPO on AI Chip Demand, But Competition and Possible Bubble Loom
-
If you had invested $1,000 in Nvidia at its IPO in 1999, it would be worth over $3.5 million today - a 351,244% return.
-
Nvidia's graphics chips have powered gaming PCs and cryptocurrency mining, but its role in artificial intelligence is driving most of its growth.
-
Demand for Nvidia's AI chips has exceeded supply, allowing it to charge very high prices. But this pricing power may fade as supply constraints ease.
-
Nvidia faces emerging competitors and risks losing business from major cloud customers who are developing their own AI chips.
-
Like other hot tech stocks, Nvidia may be in a bubble that could burst as adoption of AI technology cools from current optimistic expectations.