In 2020 and early 2021, three rounds of stimulus checks went out to American families to help cover daily expenses while the world was locked down. Between furloughs and rising prices of everyday goods, stimulus checks helped households get through the worst part of the COVID-19 pandemic.
But if you were in the fortunate position to be able to save your stimulus checks instead of spending the money, you could have invested that money in the stock market and made a pretty penny.
If you happened to invest your stimulus checks in Nvidia at the time, you'd have quite a bit of money right now.
In early 2020, Nvidia stock was hovering around $6 per share, split-adjusted. This stock had been on the rise after losing half its value during 2018 and 2019 due to rising interest rates.
But in March of 2020, the pandemic locked down the U.S. -- and the world. Nvidia stock dropped down below $5 per share before starting its rapid rise as stimulus checks started to get sent out.
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The first round of stimulus checks were paid to each individual taxpayer and their families. Here's how much you'd receive based on your family size:
If you received your stimulus check in March of 2020 and decided to put it all in Nvidia stock, you would have quickly started to make a return on your investment. After just a few months, Nvidia stock rose from around $5 per share to over $9 per share.
After one year, Nvidia stock was worth around $12 per share. Fast-forward 2 years from the first stimulus checks were issued, Nvidia stock was worth around $22 per share. This is nearly four times the price when you invested in March 2020.
But fast-forward to today, and Nvidia stock has skyrocketed to around $120 per share! This is 24 times the price you would have paid in March of 2020!
Here's how much you'd have if you invested your whole first stimulus check into Nvidia stock in March 2020 at $5 per share:
If you just received a $1,200 stimulus check and dumped the entire thing into Nvidia stock, you'd have over $28,000 today.