£5,000 put into Nvidia stock last Christmas is already worth this much!

Could Nvidia (NASDAQ: NVDA) be the gift that keeps on giving? Last year, Nvidia stock was already on fire – but since then it has moved even higher.

Since the first trading day after Christmas last year, Nvidia has moved up by 29%. So, ignoring currency fluctuations, £5,000 invested back then would now be worth around £6,450.

Longer term, the stock has performed brilliantly. In five years, it is up by 1,293%.

So a £5,000 investment just five years ago would now be worth just a few hundred pounds short of £70,000 (before taking currency movements into account). Wow!

Small dividend – but will it stay that way?

Nvidia does also pay a dividend, but the yield of 0.02% is hardly the stuff of investor dreams.

Still, someone who invested £5,000 a year ago would at least have received a bit more than £1 in dividends over 12 months.  

This may seem irrelevant. But Nvidia is massively profitable right now, so I think there could be potential for strong dividend growth in years to come.

That yield might look paltry, yet over the long term, small but fast-growing dividends can start to add up to something more substantial.

Could this still be a cracker?

Over the past year, Nvidia stock has soared partly because there is a lot of investor excitement about AI – and the firm’s chips are central to it.

But that 29% growth in the stock price has been about more than just hype. Nvidia’s business…