Nvidia Is About 4% From Becoming the First $6 Trillion Company. History Says the Milestone Itself Tells You Little.
Five past trillion-dollar milestones were followed by five really different years. What separated the good ones from the bad?
Overview
Shares of Nvidia (NASDAQ:NVDA) ended Monday, Oct. 5, at $238.90, a fresh record close. At that price, the artificial intelligence (AI) chip giant is worth around $5.8 trillion -- about 4% shy of $6 trillion, a level no company has ever hit.
Milestones like this usually make headlines. But I don't think they say much about what a stock does next.
Details
Five times, a company has become the first in the U.S. to reach a new trillion-dollar level: Apple (NASDAQ:AAPL) at $1 trillion, $2 trillion and $3 trillion, and Nvidia at $4 trillion and $5 trillion. In the following 12 months (11 so far, for the last one), the stock's return ranged from a 31% loss to a 27% gain. And it beat the S&P 500 (SNPINDEX:^GSPC) just twice.
Source
Originally published at www.fool.com.