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Now that would have gotten you a $1,000 investment in Nvidia in January

Now that would have gotten you a $1,000 investment in Nvidia in January

Bitcoin (BTC) price has done well since 2023, but there are a number of stocks that have done much better than the king of cryptocurrencies. An example of such a stock is Nvidia (NVDA). This American chip giant has risen astronomically over the past year. If you had deposited 1,000 euros into NVDA on the first traditional trading day of this year, how much would it have been worth now?

450% efficiency

On January 2 this year, NVDA’s stock price was $480. Since then, NVDA’s share price has risen tremendously. In fact, Nvidia has been one of the best-performing stocks on the American stock market for some time. At the time of writing, Nvidia’s share price has risen to $800. This represents a price increase of no less than 72%.

This means: If you had decided on January 2nd to invest 1,000 euros in the American chip giant, it would now be worth 1,720 euros. The total profit is a nice 720 euros. That’s an excellent return for a period of less than two months, but the picture looks even better if we zoom out. If you had bought NVDA back in January a year earlier, you would have achieved a truly insane return that even BTC cannot match.

As of January 3, 2023, the value of NVDA was $145. This means that if you have not sold any of your original 1,000 euros in the meantime, you would currently make a profit of 475%. Your investment would now have been worth 4,750 euros. A win of 3,750 euros; bizarre.

Bitcoin also had a good year, but since January 1, 2023 the BTC price has “only” gained 225%. As a Bitcoin investor there’s little to complain about, but it once again underlines how insanely quickly Nvidia’s price has risen recently.

Nvidia: the king of the GPU market

Nvidia’s market capitalization is also extremely high due to its rapid growth. At the time of writing, it stands at $1.97 trillion. That’s almost as much as the entire crypto market combined, which is $2.06 trillion, according to data from Companies Market Cap. This puts Nvidia in fourth place among the largest companies in the world based on market capitalization.

The reason for Nvidia’s extreme growth is the rise of AI. AI applications require a lot of computing power and Nvidia’s products are currently ideally suited for this. Corporations like Google and OpenAI are stocking up on huge amounts, but consumers are also getting involved. All in all, Nvidia leaves the competition, including Bitcoin, far behind.

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