Want to know why everyone is talking about AI and Nvidia stock? If you bought it just a year ago, you've seen the fuss firsthand.
Following another gain Monday, had you plunked down just $10,000 on the AI giant a year ago, your position now would be worth 233% more — or $33,313 to be exact. That's a solid gain of $23,313 in a pretty short period of time. But more important, the gain on Nvidia is larger than you would have had on any other S&P 500 stock. That explains its perfect 99 IBD Relative Strength rating, indicating it's outperforming 99% of all other stocks.
How does that play out in dollars and cents? Had you simply put your $10,000 into the S&P 500, you'd have just a 15.1% gain. That would leave you with $11,506, or 65% less than investing in Nvidia alone.
How Strong Nvidia Is In The S&P 500
No other S&P 500 stock comes anywhere near the gains in the past year from Nvidia. Meta Platforms is a distant second.
A $10,000 investment in Meta a year ago would only be worth 107% more, for a total of $20,682. And that's thanks to a rally just this year of 151%.
But don't make the mistake of thinking only tech stocks are paying off. Credit rating agency Fair Isaac is in third place with a 94% gain in the past year. That turned a $10,000 investment into $19,384.
Playing Nvidia Volatility With ETFs
Given the massive volatility in Nvidia stock, there's no surprise there are new ways to invest in it. Direxion this month launched a family of new Nvidia single-stock ETFs, including NVDU and NVDD. It allows active traders to play AI news by using magnified or inverse exposure to the daily performance of the common stock of Nvidia. NVDU, for instance, magnifies daily changes by 1.5 times with bullish options bets.
Given how fast this stock has risen, though, do investors really need more octane?
Where $10,000 Made The Most In A Year In S&P 500
| Company | Ticker | Sector | $10,000 invested a year ago now | % chg |
|---|---|---|---|---|
| Nvidia | Information Technology | $33,313 | 233.1% | |
| Meta Platforms | Communication Services | $20,682 | 106.8% | |
| Fair Isaac | Information Technology | $19,384 | 93.8% | |
| PulteGroup | Consumer Discretionary | $19,466 | 94.7% | |
| Royal Caribbean Cruises | Consumer Discretionary | $19,017 | 90.2% |
