Nvidia's Shocking Stock Growth Values It Higher Than Amazon & Tesla Combined

Nvidia, a leader in graphics tech and AI, has recently seen an absolutely shocking stock growth.

In fact, it now holds a market value greater than the combined worth of Amazon and Tesla.

But what actions and initiatives have led to this monumental growth in such a short period of time?

And more importantly, how can YOU cash in on this record high growth?

We’ll cover the current value of Nvidia, what led to this rapid growth, and whether or not it’s a good idea to throw your cards on the table.

Nvidia’s Current Value

Nvidia's stock has experienced an extraordinary growth over the past three years.

And now their market value surpasses some of the most formidable tech giants.

• Amazon has a market cap of approximately $2.08 trillion​

• Tesla has a market cap of around $737.53 billion​ 

But as of July 2024, Nvidia has reached an astonishing market cap of approximately $3.017 trillion, making it one of the most valuable companies globally.

To understand the magnitude of Nvidia's rise, consider this:

In mid 2020, Nvidia's market cap was approximately $250 billion.

Within just three years, Nvidia's value has quadrupled.

They were experiencing an annualized growth rate of around 58%.

That’s like if your body grew 3 feet every year. Imagine how goddamn tall you’d be since 2020?

That’s how fast this company has shot up in value. But how did this even happen?

Nvidia’s Strategic Moves

Nvidia's rise to prominence is no accident.

It’s the result of calculated strategic moves that have redefined the company's trajectory.

Nvidia is initially famous for their graphics processing units (GPUs),

In fact, they’re behind games like Cyberpunk 2077, Battlefield V, Call of Duty: Warzone, Fortnite, and Minecraft.

And now they’ve expanded their reach into various other high-growth sectors like:

1. Artificial Intelligence and Machine Learning: Nvidia's GPUs are crucial for AI and machine learning tasks.

In healthcare, for example, Nvidia's smart AI platforms aid in developing new treatments by analyzing complex data sets.

Financial institutions also use AI powered by Nvidia to enhance fraud detection and predictive analytics, helping to secure millions of dollars and improve customer experiences.

The AI market is growing at an unprecedented rate, with expectations to reach $190.61 billion by 2025, and Nvidia is cashing in.

2. Autonomous Vehicles: Nvidia's DRIVE platform is a huge component of most self driving cars you see today.

Over 370 companies, including major players like Mercedes-Benz and Toyota, rely on Nvidia’s technology to advance their self-driving car projects.

The autonomous vehicle market is projected to hit $556.67 billion by 2026, with Nvidia's innovations playing a pivotal role.

It’s just another genius way that Nvidia is looking towards the future.

Market Conditions and External Factors

Nvidia also got really lucky with market conditions that amplified its growth even more.

And learning from these conditions might help us predict the future for other tech leaders, as well as what to look out for when investing.

One of the most significant external factors has been the global semiconductor shortage.

This shortage basically placed a premium on semiconductor manufacturing.

So Nvidia found itself in a position where demand far exceeded supply.

This scarcity drove up prices and also Nvidia's revenue and stock value. It was like the perfect storm.

Nvidia is also big on cloud computing services, which are forecasted to grow at a CAGR of 17.5% from 2020 to 2025.

And since most work is done remotely now, cloud computing is more important than ever.

How To Get In On The Growth

Nvidia’s financial health is robust.

However, as of late June, they’ve been noticing a drop in stock value.

And while that is the name of the game in the volatile tech world, it’s also something to watch out for.

The drop is primarily due to supply chain issues, fluctuating demand, and broader economic factors like rising interest rates and inflation concerns.

However, they’re planning a quick comeback. And they’re still worth more than Amazon and Tesla combined.

They’re also planning an acquisition of Arm Holdings for $40 billion which would significantly enhance Nvidia's capabilities and market reach even more.

To invest in Nvidia, you’ll need to set up an account with a brokerage firm like E*TRADE or Fidelity.

Once your account is funded, search for Nvidia’s stock ticker symbol (NVDA) and decide whether to buy shares at the current market price or set a limit order to purchase shares at a specific price.

Then, regularly monitor your investment to ensure it aligns with your financial goals and risk tolerance.

Considerations Before Investing

1. Volatility: Nvidia’s stock can be volatile, influenced by factors such as semiconductor supply chain issues, competition, and market sentiment. Be prepared for price fluctuations.

2. Valuation: Despite its strong growth, Nvidia's stock may be considered expensive by some analysts. It has a high price-to-earnings (P/E) ratio.

3. Market Conditions: Broader market trends and economic conditions can impact Nvidia’s stock. Watch out for shifts in interest rates or global trade policies affecting the tech sector.

4. Long-Term Perspective: Investing in Nvidia may be more suitable for those with a long-term investment horizon. The tech industry is dynamic, so holding the stock over several years is probably your best bet.

The BMM Takeaway

You’ve got to look for market trends and disturbances constantly.

These demands and shortages act like clues that point to the next big player.

Nvidia was in the right place at the right time, and further fueled their growth with investments in innovative technologies.

This is why you’ll hear me advocate for stocks and ETFs in the tech or energy sectors.

Because even though they’re volatile, people will always need tech and energy. Just look at a 10 year forecast and you’ll see a steady positive line overall.

Personally, I don’t know whether or not I’ll invest in Nvidia just yet. But based on everything I’ve found, I wouldn’t ignore this one.

Disclaimer: The information contained in this article is not intended and shall not be understood or construed as financial advice. The team at Big Money Methods have done our best to ensure the information provided in our articles is accurate and valuable information. Regardless of anything to the contrary, nothing through this website should be understood as recommendation that you should not consult with a financial professional to address your particular information. We are not responsible for any financial losses you may incur as a result of investing in Nvidia or any other stocks.