Nvidia's Lion Returns: How a $100 Investment 5 Years Ago Turned Into $1,479

As many industry lion quotes remind us, the most profitable investments often require patience through uncertainty. Nvidia’s journey over the past five years exemplifies this wisdom perfectly—what began as a risky bet in early 2021 has delivered returns that would make any investor proud.

The Rollercoaster Ride: Understanding Nvidia’s Volatility

The path to extraordinary wealth rarely runs smooth. Back in 2021, Nvidia kicked off the year with a sharp 24% decline as graphics processing unit (GPU) supply concerns spooked the market. Many investors abandoned ship, unable to stomach the swings. They didn’t see what lay ahead.

Despite the pessimism, the company defied skeptics by posting record quarterly revenue of $5 billion in its fiscal 2021 fourth quarter. The stock surged 125% that year, rewarding those who held firm. But the celebration proved short-lived. A period of inflation and economic slowdown between late 2021 and mid-2022 sent shares plunging 66%, testing even devoted shareholders’ resolve.

Yet these dramatic price swings masked a more important story unfolding beneath the surface. The investors who understood the company’s fundamental transformation emerged as the real winners.

From Gaming to AI: The Data Center Revolution Fueling Growth

Five years ago, roughly half of Nvidia’s revenue came from its gaming segment. Today, the company operates in a fundamentally different competitive landscape. The data center segment, powered by explosive demand for artificial intelligence (AI) applications, now dominates the growth narrative.

The numbers tell a remarkable story. In the most recent quarter alone, the data center division generated record revenue exceeding $51 billion—more than ten times the company’s entire revenue just five years prior. Management projects fourth-quarter revenue of approximately $65 billion, representing growth of 65%. This acceleration shows the transformative impact of AI adoption across industries.

This wasn’t predictable. No analyst in 2021 could have foreseen the magnitude of AI demand that would emerge. Those who held through uncertainty simply benefited from positioning themselves in a company that would become central to this technological shift.

Why Patient Investors Claimed the Lion’s Share of Returns

Here’s the simple math: a $100 investment in Nvidia five years ago is worth approximately $1,479 today—a 1,380% gain. For context, Netflix generated exceptional returns for early Stock Advisor recommendations ($1,000 invested in December 2004 became $448,476), and Nvidia itself appeared on that same list in April 2005 (turning $1,000 into $1,180,126).

These aren’t anomalies. The Motley Fool Stock Advisor team’s average return of 945% has crushed the S&P 500’s 197% performance for the same period. The common thread: long-term conviction during periods of noise and uncertainty.

The investors who profited most weren’t market timers trying to dodge volatility. They were patient holders who understood that breakthrough technologies—like the AI revolution—take time to materialize but reward those who maintain their positions through the inevitable doubts.

Investment Considerations Going Forward

Before considering Nvidia at current prices, recognize what made the previous five-year period exceptional: the AI boom was neither obvious nor fully priced in. The question investors face now is whether current valuations reflect future growth, or whether additional upside remains.

As the old investment lion quotes suggest, sometimes the hardest part of investing is simply waiting. Nvidia’s story reinforces that wisdom—not everyone has the temperament for multi-year holding periods through price swings. But for those who did, the rewards spoke for themselves.