<div id="readability-page-1">Another year, another huge gain. That's what appears to be shaping up for Nvidia (NVDA 1.18%). Shares of the GPU maker are up big with only a few weeks remaining in the year. It's too late for investors who don't own Nvidia to benefit from the stock's past performance. But should you buy Nvidia stock hand over fist before the end of 2024? Here's what history suggests. <h2>An impressive Q1 track record</h2> There's often no reason to hurry to buy a stock. Whether you purchase shares immediately or a few months later doesn't matter too much in many cases. However, it's been a different story with Nvidia. The company conducted its initial public offering on Jan. 22, 1999. In the nearly 25 years since then, Nvidia has delivered a positive return in the first quarter 20 times. The stock's average Q1 gain is an impressive 19%. If you waited until after the beginning of the year, you would have been poorer most of the time. In 14 of Nvidia's 25 full first quarters since its IPO, the stock has delivered a double-digit percentage gain. The most impressive performance came last year when Nvidia's share price skyrocketed 90%. But the first quarter of 2024 ranks as the stock's second-best Q1 performance ever with a huge gain of 82.5%. <img src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/187485d944606c00a7cb3f39731bb937.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="720" height="441" original-src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/187485d944606c00a7cb3f39731bb937.png"/> NVDA data by YCharts Granted, Nvidia has turned in some dismal Q1 performances. In the first quarter of 2008, the stock plunged roughly 42%. However, over the last 10 years, Nvidia has experienced only one negative first quarter with its shares falling around 7% in Q1 of 2022. <h2>Expanding the horizon</h2> Of course, most investors won't buy Nvidia shares before the end of a given year and then sell them three months or so later. How has the stock performed over longer periods? Nvidia delivered a positive return in 17 of the 23 three-year periods since the company's IPO (including the period between 2022 and 2024). The average return for these three-year periods was around 195%. But if you bought before the end of a given year and held onto the stock for five years, you'd really be sitting pretty. Nvidia's share price has risen in 19 out of 21 five-year periods since its IPO. The average return for these five-year periods was a staggering 551%. What's the bottom line from a historical standpoint when it comes to buying Nvidia stock before the end of the year? It nearly always pays off handsomely. <h2>Throw out the history books</h2> Now for the bad news: There's a good case to be made that history doesn't matter much regarding investing in Nvidia. Why? The present is unlike the past. Most of Nvidia's stellar performances in previous years came before the generative AI explosion. Interest rates were also much lower during the period when Nvidia delivered its greatest gains. Rivals are scrambling to develop chips that compete with Nvidia's GPUs. The stock's future returns may be significantly lower in the future as the supply of AI chips catches up with demand, interest rates remain higher (relatively speaking), and competition intensifies. However, there's also an argument that Nvidia's future could be even brighter than its past. CEO Jensen Huang believes that the company's new Blackwell GPU architecture could become the most successful product in not only Nvidia's history but in &#34;the history of the computer.&#34; Importantly, Nvidia is now on a yearly cycle of launching new chips, so even more powerful GPUs will be on the way after Blackwell. AI is still only in its early innings. New advances, potentially including artificial general intelligence (AGI), could boost Nvidia's growth like never before. Even if we eliminate AI altogether, the company could have a $1 trillion opportunity as organizations shift from general-purpose computing to accelerated computing. If you think Nvidia's growth prospects will improve (and there's good reason to do so), throw out the history books: Buying this stock hand over fist before the end of the year makes perfect sense. </div>

NVDA

Nvidia's stock has shown impressive historical performance, with an average Q1 gain of 19% since its IPO in 1999. The stock has delivered positive returns in 20 out of 25 first quarters, including a remarkable 82.5% gain in Q1 2024. Over longer periods, Nvidia has also performed well, with an average return of 551% over five-year periods. However, future performance may be challenged by increased competition and higher interest rates. Despite this, Nvidia's growth potential remains strong, particularly with advancements in AI and new product launches.

- Nvidia's stock has shown impressive performance, with an average Q1 gain of 19% since its IPO, including a remarkable 82.5% increase in Q1 2024.  
- Historically, the stock has delivered positive returns in 17 of 23 three-year periods and 19 of 21 five-year periods, suggesting that buying before year-end typically yields substantial gains.  
- However, current market conditions, increased competition, and rising interest rates may impact future returns, though advancements in AI and new product launches could enhance Nvidia's growth potential.

Should You Buy Nvidia Stock Hand Over Fist Before the End of 2024? Here's What History Suggests.