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From $500 to $1,123: NVIDIA's 123% Return in One Year

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  Published in Stocks and Investing on Wednesday, November 12th 2025 at 9:57 GMT by The Motley Fool

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How $500 in NVIDIA Stock Would Have Paid Off Over the Past Year – A Deep Dive

On a quiet Thursday in late November 2024, the stock market’s most hyped semiconductor name, NVIDIA, was on a roll. If you had put $500 into the company’s shares a year earlier, the result would be a dramatic return that would dwarf many other tech favorites and even traditional blue‑chip stalwarts. The Motley Fool’s “If you invested $500 in NVIDIA stock 1 year ago, today” article breaks down exactly what that return looks like, why NVIDIA has been on a tear, and what it might mean for investors who are eyeing the company’s future.

1. The Numbers – From $500 to the “W” Zone

A. Shares Bought and Current Value

The article begins by showing the exact price NVIDIA traded at on November 12 2023. At that time, the stock closed at roughly $456.88 per share. A $500 investment would have bought you 1.094 shares (after accounting for fractional shares). By the article’s close on November 12 2024, NVIDIA had risen to about $1,025.70 per share.

B. Total Gain

The simple arithmetic tells us that each of those 1.094 shares would now be worth around $1,123.88. That means your original $500 would be $1,123.88, a 123% increase in just one year. When you factor in dividends (NVIDIA does not currently pay a dividend, so the gain is 100% capital appreciation), the total return is a staggering +123%.

C. Annualized Return

The article then turns the raw numbers into an annualized figure: the +123% over a single year translates to an annualized return of about 123%—a figure that’s higher than nearly every other U.S. equity, and one that even beats the “S&P 500 Plus” index’s 9–10% per year over the same period.

2. Why NVIDIA Was So Successful

The Motley Fool piece explains that the gains are a product of several intertwined factors:

The article links to several additional Fool pieces that dig deeper into each of these areas. For example, the “NVIDIA’s Data‑Center Dominance” article explains how the company’s GPU architecture—specifically the Hopper architecture—has been a game‑changer for AI workloads. A link to the “GeForce RTX 40 Series” page provides details on how gaming demand remained robust even during broader market volatility.

3. Risk Signals – What’s on the Horizon

No article would be complete without a balanced view of potential risks. The Motley Fool piece points out a few key concerns that could temper NVIDIA’s meteoric rise:

1. Competition from AMD and Intel
   While AMD’s newer GPU lines have closed the performance gap, they still lag behind NVIDIA’s AI‑optimized designs. Intel is also investing heavily in GPU tech and may become a serious threat if it gains traction in the data‑center market.

2. Chip Supply Chain Constraints
   The global chip shortage, though easing, still affects production timelines. Any disruptions could delay shipments of key products like the Ada Lovelace GPUs.

3. Regulatory Scrutiny
   As NVIDIA’s AI chips become central to national security, the company could face increased scrutiny from regulators in the U.S. and abroad, potentially impacting sales to governments or large enterprises.

4. Valuation Concerns
   The stock’s price-to-earnings (P/E) ratio was hovering around 70x at the time of the article, a level that some analysts view as high relative to the broader market. While the company’s growth justifies a premium, a slowdown could cause a sharp sell‑off.

The article also links to the Fool’s “What’s Wrong With NVIDIA?” page, which discusses these headwinds in detail, offering readers a more nuanced view of the company’s upside and downside.

4. Investor Takeaways

• Capital Appreciation: The article’s headline numbers are a testament to the power of NVIDIA’s AI strategy and the broader tech rally. If you’re chasing high growth, NVIDIA’s stock could still be a compelling option, provided you can stomach volatility.

• No Dividend: Because NVIDIA currently doesn’t pay a dividend, the return is purely from price appreciation. This means that investors need to be comfortable with the company’s reinvestment strategy rather than a steady cash flow.

• Long‑Term Outlook: For those who believe the AI boom will continue, NVIDIA’s position at the intersection of GPU tech, cloud computing, and AI research could keep the company ahead of the curve. However, that optimism needs to be balanced against the risk factors noted above.

• Diversification: The article concludes by recommending that even if you’re bullish on NVIDIA, you should keep a diversified portfolio. A single stock’s 123% gain in a year is impressive, but it also underscores how a misstep could swing the portfolio dramatically in the other direction.

5. Bottom Line

The Motley Fool’s “If you invested $500 in NVIDIA stock 1 year ago, today” article delivers a clear, data‑driven snapshot of a spectacular year for a leading AI‑chip maker. It demonstrates that, as of November 2024, NVIDIA had managed to double its value in a single year—a return that outpaced most other tech names and the S&P 500 itself. By weaving together raw numbers, corporate strategy, market dynamics, and risk considerations—and by linking to further reading on each key point—the article provides readers with both a celebratory look at past performance and a sober view of what could lie ahead. Whether you’re a seasoned investor or a newcomer eyeing the AI boom, NVIDIA’s story is a compelling case study in how technology, timing, and ambition can align to produce extraordinary returns.