Shares of AI champion Nvidia keep racing higher. And now the money made on the S&P 500 stock is at breathtaking levels.
Following the stock's rise on Thursday to 1,038 a share, shares of Nvidia are up 22,149% in the past 10 years, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. That means had you invested $10,000 in the stock 10 years ago, your investment would now be worth $2.2 million.
That's more than you've made on any S&P 500 stock in that time. The S&P 500 itself is only up 176% in that time, only turning your $10,000 investment to $27,627. You'd be more than $2.2 million richer by going with Nvidia over just the S&P 500.
Nvidia Charging Higher In The S&P 500
Nvidia is now a value-creator in its own league. No other S&P 500 stock has created anywhere near as much value in the past 10 years.
What's No. 2? Interestingly, it's a computer chip company trying to catch up in AI: Super Micro Computer. Shares of Super Micro are up 3,903% in the past 10 years. That would have turned a $10,000 investment 10 years ago into $400,365. That's not bad, but nowhere near Nvidia's gain.
What about another Magnificent Seven stock? None are even close to Nvidia either. The top Magnificent Seven stock in the past 10 years is still Tesla. But it's only up 1,158%, turning $10,000 into $125,796.
Nvidia's Future
Of course what matters now is what's the future for Nvidia. Analysts are bullish, but seem to think the stock is nearly fully valued. The 12-month price target is 1,166. If that's right it means the stock is about 4% undervalued.
But when a company is growing this fast, valuations are relative.
Nvidia Gains Rule
Top S&P 500 gains in past 10 years
| Company | Ticker | 10-year % ch. | Value of $10,000 now |
|---|---|---|---|
| Nvidia | 22,149.4% | $2,224,943 | |
| Super Micro Computer | 3,903.6% | $400,365 | |
| Advanced Micro Devices | 3,865.1% | $396,511 | |
| Fair Isaac | 2,276.0% | $237,598 | |
| Builders FirstSource | 2,170.2% | $227,018 | |
| Axon Enterprise | 1,992.4% | $209,243 | |
| Broadcom | 1,862.5% | $196,249 | |
| Monolithic Power Systems | 1,799.3% | $189,926 | |
| Cadence Design Systems | 1,639.3% | $173,926 | |
| Lam Research | 1,475.5% | $157,553 |
