Nvidia's Stock Plunged 90% Twice Before Becoming Most Valuable Company

"If you look at the first 15 years, even as a publicly traded company, it looks like an electrocardiogram of somebody having a heart attack. The stock went down 90% twice."

"A 50% loss requires a 100% gain to recover. A 90% loss requires a 900% gain. If you experience two separate 90% drawdowns and reinvest nothing in between, you need roughly a 9,900% return from the second bottom just to reach your original cost basis."

"The historical record shows how violent the ride was. From the start of 2000 through May 2026, NVIDIA returned roughly 221,833% on a split-adjusted basis."

NVIDIA's stock has seen dramatic fluctuations, including two 90% drawdowns, which pose significant risks for investors. Jensen Huang's strategy of holding onto winning companies may work for operators but is less effective for shareholders facing deep losses. Recovering from a 90% loss requires an extraordinary return, which most companies do not achieve. Despite NVIDIA's impressive overall return of 221,833% since 2000, the volatility and historical drawdowns illustrate the challenges of a buy-and-hold approach in the face of severe market downturns.

Read at 24/7 Wall St.