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Do you need to purchase the Nvidia stock handover fist by the end of 2024? This is what history suggests. Keith Spates, Motley Fool December 4, 2024 (Wednesday) 9:41 PM.
In another year, another significant profit seems to be shaping up for Nvidia (nasdaq: NVDA). The GPU manufacturer's stock has seen a significant rise in just a few weeks remaining this year.
It's likely too late for investors who do not own Nvidia to profit from the stock's past performance. However, do you need to hand over your chips to purchase Nvidia shares by the end of 2024? This is what history suggests.
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Impressive Q1 performance
There are often no compelling reasons to rush to buy stocks. Whether you buy shares immediately or a few months later is not usually that important. However, with Nvidia, it's a different story.
The company conducted an initial public offering on January 22, 1999. Since then, over a period of about 25 years, Nvidia has achieved positive returns in the first quarter 20 times. The impressive average profit for the first quarter of the stock price is 19%. If you had waited until the beginning of the year, in most cases, you would have been much poorer.
Of the 25 first quarters since Nvidia's IPO, the stock achieved double-digit percentage increases in 14 quarters. The most impressive performance was last year when Nvidia's stock price soared by 90%. However, the first quarter of 2024 is ranked as the second best stock performance for the first quarter with a significant profit of 82.5%.
NVDA data by YCharts
Indeed, Nvidia turned around its dismal performance in Q1. In the first quarter of 2008, the stock price plummeted by about 42%. However, over the past 10 years, Nvidia experienced only one negative first quarter in 2022 when the stock price dropped by about 7%.
Vision expansion
Certainly, most investors do not buy Nvidia shares by a specific year-end and sell them about three months later. How have the stocks performed over an extended period?
Nvidia has brought positive returns in 17 of the 23 years since its IPO (including the period from 2022 to 2024). The average return over this 3-year period was approximately 195%.
However, if you were to purchase before the end of a specific year and hold the stock for 5 years, you would truly be sitting pretty. Nvidia's stock price has increased in 19 of the 21 five-year periods since its IPO. The average return over these 5 years was an amazing 551%.
When it comes to buying Nvidia shares by the end of the year, what is the historical bottom line? It almost always pays off handsomely.
It's likely too late for investors who do not own Nvidia to profit from the stock's past performance. However, do you need to hand over your chips to purchase Nvidia shares by the end of 2024? This is what history suggests.
Are you missing the morning scoop? The Breakfast News is a quick, silly, and free daily newsletter that provides everything. Sign up for free »
Impressive Q1 performance
There are often no compelling reasons to rush to buy stocks. Whether you buy shares immediately or a few months later is not usually that important. However, with Nvidia, it's a different story.
The company conducted an initial public offering on January 22, 1999. Since then, over a period of about 25 years, Nvidia has achieved positive returns in the first quarter 20 times. The impressive average profit for the first quarter of the stock price is 19%. If you had waited until the beginning of the year, in most cases, you would have been much poorer.
Of the 25 first quarters since Nvidia's IPO, the stock achieved double-digit percentage increases in 14 quarters. The most impressive performance was last year when Nvidia's stock price soared by 90%. However, the first quarter of 2024 is ranked as the second best stock performance for the first quarter with a significant profit of 82.5%.
NVDA data by YCharts
Indeed, Nvidia turned around its dismal performance in Q1. In the first quarter of 2008, the stock price plummeted by about 42%. However, over the past 10 years, Nvidia experienced only one negative first quarter in 2022 when the stock price dropped by about 7%.
Vision expansion
Certainly, most investors do not buy Nvidia shares by a specific year-end and sell them about three months later. How have the stocks performed over an extended period?
Nvidia has brought positive returns in 17 of the 23 years since its IPO (including the period from 2022 to 2024). The average return over this 3-year period was approximately 195%.
However, if you were to purchase before the end of a specific year and hold the stock for 5 years, you would truly be sitting pretty. Nvidia's stock price has increased in 19 of the 21 five-year periods since its IPO. The average return over these 5 years was an amazing 551%.
When it comes to buying Nvidia shares by the end of the year, what is the historical bottom line? It almost always pays off handsomely.
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