Nvidia Has Skyrocketed A Stunning 475% Vs. Mag 7 Since 2022 - NVIDIA (NASDAQ:NVDA)

Nvidia Corp. (NASDAQ:NVDA) has dramatically outperformed the Magnificent 7 (Mag 7) group since late 2022, surging over 475% in relative performance, buoyed by several catalysts. While peers like Apple Inc (NASDAQ:AAPL) and Tesla Inc (NASDAQ:TSLA) have lagged, Nvidia’s gains have reshaped the tech landscape, turning it from a niche player to the group’s heavyweight.

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A price ratio chart comparing Nvidia to the aggregate Mag 7 shows a value of about 0.012 in September 2022, which exploded to around 0.07 by mid-2025 — representing a jaw-dropping 475% increase in relative terms.

Nvidia is up over 28% year-to-date in 2025 and ranks as the best-performing Mag 7 stock this year, as investors pile into AI enablers.

What Fueled The NVDA Stock Surge?

Several key factors have propelled Nvidia’s ascent:

Unprecedented AI Demand: Since the ChatGPT launch in November 2022, Nvidia’s stock has delivered a total return of 1,093%, outpacing the Mag 7’s 280% and the S&P 500’s 75%. Its Blackwell and Hopper chips are sold out for quarters ahead, with shipments projected at 300,000 Blackwell units in the fourth quarter of 2024 and 800,000 in the first quarter of 2025.
Data Center Explosion: Revenue from data centers hit $30.8 billion in the third quarter, up over 100% year-over-year, accounting for more than 80% of total sales. Analysts expect 50%+ growth in sales and profits for 2025, driven by hyperscaler spending from Mag 7 peers like Microsoft Corp (NASDAQ:MSFT) and Amazon.com Inc (NASDAQ:AMZN).
Market Cap Dominance: Nvidia’s market cap stands at $4.31 trillion as of September, making it the world’s most valuable company and capturing about 22% of the Mag 7’s total $19.88 trillion market cap—up from under 1% in early 2022. This shift highlights its transformation into the AI era’s linchpin.

Despite volatility—including a 14% year-to-date dip early in 2025 amid tariff fears—Nvidia rebounded strongly, hitting record highs in July and leading the group’s recovery.

Can AI Growth Sustain Nvidia’s Lead?

While Nvidia’s hardware dominance is clear, its future hinges on monetizing AI beyond chips. Data center revenue is forecast to grow 17% sequentially with Blackwell Ultra. Still, competition from Advanced Micro Devices Inc (NASDAQ:AMD) and Intel Corp (NASDAQ:INTC), plus potential AI spending slowdowns, poses risks.

Valuations reflect optimism: Nvidia trades at a forward P/E of 39.37 (down from 44.64 in mid-2024), premium to the Mag 7 average but backed by 27.7% aggregate earnings growth for the group in the first quarter.

Nvidia’s trajectory could mirror the group’s earnings power, projected at 12% for tech in 2025, but over-reliance on AI hype risks a pullback if capex cools. Still, with unmatched ROIC and a $4.2 trillion market cap addition since 2015, Nvidia remains the AI golden child—poised for more gains if the boom endures.

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