$500 Monthly Buys of Nvidia Stock Now Worth Over $79,000

Investors who bought $500 of Nvidia (NVDA) stock on the first trading day of every month since December 2022 have seen their money triple to about $79,000.

This strategy, which eliminates the need for timing decisions, has been remarkably successful. The plan's early purchases were made at prices below $50 per share, with the cheapest purchase costing around $14 in January 2023. These low-cost shares are now worth significantly more than the later, pricier buys.

Nvidia's revenue has surged, more than doubling year over year to $96.2 billion in its fiscal second quarter of 2027. The company expects to generate about $108 billion in the current quarter, a double-digit step up from the previous quarter. Profits have kept pace, with net income more than doubling to $59.7 billion.

While Nvidia's stock price has risen significantly, it still sells for around 14 times its expected earnings in fiscal 2028. This valuation multiple is not out of line, considering the company's growth prospects. However, investors should be aware that Nvidia's revenue is concentrated among a limited number of customers, making the stock vulnerable to changes in their spending plans.