Nvidia's Meteoric Rise: How Does It Compare To Other Market Rallies?

Nvidia Corp NVDA has become the world’s third-most valuable company.

The Santa Clara, California-based company is nearing a $3 trillion market cap (on last check, it’s $2.8 trillion). It credits much of its growth to continuous earnings beats and demand for artificial intelligence (AI).

Ranked among the so-called “Magnificent Seven,” Nvidia has already soared over 100% in 2024. Here’s how the Jensen Huang-led software firm compares to historic rallies by other large-cap companies.

See Also: This Week In AI — Elon Musk Reacts To Nvidia’s Soaring Market Cap, ‘Big Short’ Michael Burry’s AI Picks

Markets research company Bespoke Investments posted a graph on social media showing a 10-year rolling average share price ascensions of large-cap companies since 1992. See below.

Best 10-year stretches at any point in time for the mega-caps:

NVIDIA $NVDA: +22,080%
Microsoft $MSFT: +13,300%
Apple $AAPL: +9,650%
Amazon $AMZN: +4,730%
Meta $META: +1,100%
Alphabet $GOOGL: +1,075%$NVDA 👀 pic.twitter.com/Jpomour5fL

— Bespoke (@bespokeinvest) May 26, 2024

Nvidia 10-Year Stretch

Nvidia’s best 10-year stretch registered an off-the-charts 22,080% growth figure.

The performance of the runners-up seems paltry in comparison:

• Microsoft Corp MSFT saw growth of 13,300% in the late 1990s and early 2000s. The Redmond, Washington-based tech giant’s rise was fueled by the popularity of personal computing and its dominance in software applications.
• Apple Inc AAPL grew by 9,650% in its best 10-year stretch. In the 2010s, on the heels of Steve Jobs‘s death, the Cupertino, California-based iPhone maker became the first trillion-dollar US company.
• Amazon.com Inc AMZN grew by 4,730% during its best 10-year stretch in the 2010s. The online retailer’s rally was fueled by the success of Amazon Prime, Amazon Web Services, and the company’s strategic acquisitions.
• Eli Lilly And Co LLY saw its share price surge 1557% over the last 10 years. The pharmaceutical giant’s weight loss drugs have captivated investors.

$LLY up to 1557% pic.twitter.com/I2y64tsw3y

— Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) May 26, 2024

Nvidia was worth just $83 billion five years ago. Its rally has left observers wondering whether it will ever run out of fuel.

Now Read: Magnificent 7 Becomes ‘The Magnificent One’: Wall Street Guru Hails Single Tech Stock As Market Leader

Image: Shutterstock