Nvidia has been making waves in the stock market due to its significant gains in the past year. If you had invested just $10,000 in Nvidia a year ago, your position would now be worth $33,313, marking a solid gain of $23,313. This gain surpasses that of any other stock in the S&P 500, earning Nvidia a perfect 99 IBD Relative Strength rating, indicating its outperformance compared to 99% of all other stocks.
In contrast, investing the same amount in the S&P 500 would have resulted in a much smaller gain of 15.1%, leaving you with only $11,506. This shows that Nvidia has far outperformed the broader market index.
Other stocks in the S&P 500 pale in comparison to Nvidia’s gains. Meta Platforms comes in second with a 107% gain, mainly driven by a rally this year of 151%. Fair Isaac ranks third with a 94% gain in the past year. These results demonstrate that it is not only tech stocks that have been lucrative investments.
Given the volatility of Nvidia stock, investors now have new options for investing in it. Direxion recently launched a family of Nvidia single-stock ETFs, such as NVDU and NVDD, which allow traders to leverage or inverse the daily performance of Nvidia’s common stock. These ETFs provide a way to capitalize on AI-related news and market movements.
However, considering how rapidly Nvidia stock has risen, investors should carefully consider whether additional leverage is necessary.
Overall, Nvidia’s success in the AI industry has made it a standout performer in the stock market. Its substantial gains have outperformed all other stocks in the S&P 500, making it an attractive investment for those interested in AI technology.
Sources:
– IBD
– S&P Global Market Intelligence
