BING-JHEN HONG/Getty Images

BING-JHEN HONG/Getty Images

Nvidia, also known right now as “the biggest stock on the planet,” posted record profits on Feb. 21, with revenue rising to a staggering $22.1 billion, up 265% from a year ago, according to the earnings report. , thanks to its artificial intelligence (AI) business.

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This is what some analysts, such as Dan Ives of Wedbush Securities, considered “the most important moment for the market and the technology sector in many years” and a “defining moment for technology bulls.”

To put this in perspective, as of February 13, Nvidia stock is up 17,044% over the past 10 years, according to an analysis by Investor’s Business Daily.

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In turn, that means that if you had invested $10,000 in stocks 10 years ago, your investment would now be worth a staggering $1.7 million.

“That’s more than you’ve made on any S&P 500 stock in that time. The S&P 500 itself is up 176% in that time, turning your $10,000 investment into $27,604. “You would be more than $1.6 million richer if you opted for Nvidia and not just the S&P 500,” according to the analysis.

However, some experts said that while the data and statistics on which stocks have performed the most in the intervening periods are interesting, they are “materially insignificant.”

“In hindsight, it’s always a 20-20 ratio,” said Peter C. Earle, senior economist at the American Institute for Economic Research. He added that 10 years ago, there were certainly as many reasons not to invest in Nvidia as there were reasons to invest money in it.

Earle argued that when Nvidia went public in 1999 it was a promising company, but its core business was supporting increasingly sophisticated video game graphics.

And from 2004 to 2014 there were many more reasons to invest in Amazon, for example, than in Nvidia, since during that period, Amazon shares appreciated at an average rate of 21% annually, while Nvidia’s averaged just over 10% annually, Earle said. aggregate.

“Over the next five years, Nvidia stock soared ahead of Amazon’s, even before AI became the focus of so much expected growth,” Earle continued. “All I want to say is that explosive asset price appreciation of this type is almost impossible to see in advance. Fortunately, while most of us didn’t own Nvidia stock (other than indirectly in our 401Ks), we will all benefit greatly from the innovation their products are making possible.”

However, the stock’s skyrocketing rise doesn’t look like it will stop anytime soon, as shown by the company’s financial forecast, which predicts revenue will be $24 billion for the first quarter of fiscal 2025.

“We guide one room at a time. But fundamentally, conditions are excellent for continued growth from calendar 24 to calendar 25 and beyond,” said Jensen Huang, founder and CEO of Nvidia, according to a transcript of the Feb. 21 earnings call.

“And let me tell you why? We are at the beginning of two industry-wide transitions.”

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Will Nvidia still be a winner?

Following the earnings release, many analysts significantly increased their price target for the stock. For example, Angelo Zino, CFA and senior industry analyst at CFRA Research, said in a research note that the company raised its 12-month target to $840 from $700 as it sees “a number of growth drivers that will support the demand in FY24.” /CY 25 and beyond.”

And as Joe Camberato, CEO of National Business Capital, noted, the company’s quarterly sales now represent a whopping 90% of last year’s revenue.

“That’s not only impressive; is a clear sign of the AI ​​frenzy we are witnessing. “We are on the brink of a technological revolution and Nvidia will be a key player,” he added.

However, some experts are against putting all your eggs in one basket and warn that “(Ten thousand dollars) invested in any stock is like throwing darts at the board and saying that you have the crystal ball to predict what to expect from any stock.” company. “

Instead, try other options to take advantage of Nvidia’s explosive growth, such as investing through exchange-traded funds (ETFs).

“Most everyday traders and investors are not that smart or have the patience or experience to be the best stock pickers,” explained Sean Kozak, CEO of Neurostreet. “This is where having a dual-tech strategy comes in. Using tech ETFs would be a better replacement as it allows you to not only play the bull market but also the bear market.”

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This article originally appeared on GOBankingRates.com: $10,000 Invested in Nvidia 10 Years Ago Would Have Earned You This Staggering Amount of Money

By Sam