If you invested $1,000 in Nvidia 10 years ago, you would have earned a significant return on your investment.

Nvidia's latest quarterly earnings report will determine if the company's rapid growth in artificial intelligence technology will continue.

The AI chip boom's technology company reported its fourth quarter earnings after the stock market's close on Wednesday, surpassing expectations for both earnings and sales. Its revenue has increased by 265% from the previous year.

Nvidia's computer chips, used in AI tools like ChatGPT and Copilot, have driven the company's market capitalization to $1 trillion.

The tech company's market cap was $1.667 trillion as of market close on Feb. 21, lagging behind Alphabet's $1.779 trillion market cap and the market caps of Microsoft and Apple, which stood at $2.988 trillion and $2.819 trillion, respectively.

Despite a slight decline in Nvidia's stock price during Wednesday's trading session, shares have increased by nearly 40% since the beginning of the year and have soared by over 225% in the last 12 months.

Despite the initial surge in demand for Nvidia's AI chips, significant corporations like Microsoft and Meta have expressed interest in purchasing them from other suppliers.

How much a $1,000 investment in Nvidia would be worth

If you had invested $1,000 in Nvidia one, five or 10 years ago, your investment would be worth $1,194.52, $1,694.52, and $2,194.52, respectively, based on CNBC's calculations using the company's Feb. 20 closing share price of $694.52.

• If you had invested $1,000 in Nvidia a year ago, your investment would have grown by approximately 225% and be worth around $3,248 as of Feb. 20.
• If you had invested $1,000 in Nvidia five years ago, your investment would have grown by 1,015% and be worth approximately $17,542 as of Feb. 20.
• If you had invested $1,000 in Nvidia 10 years ago, your investment would have increased by approximately 22,340% and be worth around $148,226 as of Feb. 20.
• If you had invested $1,000 in Nvidia on Jan. 22, 1999, your investment would have grown by approximately 277,708% and be worth around $2,784,065 as of Feb. 20.

Before investing, do your due diligence

It is not accurate to base a company's future performance solely on its short-term performance, as the stock market is subject to sudden fluctuations and unpredictable factors that can affect a company's share price.

Instead of choosing individual stocks, most financial experts recommend a more hands-off approach, such as investing in exchange-traded funds or mutual funds.

Funds that replicate market indices, such as the S&P 500, which tracks the stock performance of 500 large U.S. companies, spread your investment across a diverse portfolio of top-performing companies, including Nvidia, Amazon, Apple, and Microsoft.

The S&P 500 has increased by approximately 25% in the past 12 months, according to CNBC's calculations. Over the past two years, the index has grown by about 79%, and its value has more than doubled since 2014.

Discover an ETF that could benefit from Nvidia's growth by reading the latest article from CNBC Pro.

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