Recently, we released an article highlighting 10 S&P 500 Stocks That Outperformed Bitcoin in 2024. This piece will explore how NVIDIA Corporation (NASDAQ:NVDA) compares to other S&P 500 stocks that exceeded Bitcoin’s performance this year.
Bitcoin’s value has seen significant changes since the inauguration of U.S. President Donald Trump, with the cryptocurrency hovering around $100,000 since it reached that milestone last December. Trump’s presidency has inspired increased optimism around Bitcoin, leading many to envision a more favorable regulatory landscape for digital currencies. Following the SEC’s approval of the first U.S. spot Bitcoin ETF last year, Bitcoin breached the $70,000 price threshold established in 2021. This milestone is widely considered a pivotal moment for the cryptocurrency, drawing the interest of a broader range of investors. In 2024, Bitcoin’s price has more than doubled, with many analysts anticipating even more substantial growth in 2025, forecasting a rise in value to $200,000.
In a recent CNBC interview, CoinShares’ head of research, James Butterfill, projected that Bitcoin could reach a price between $80,000 and $150,000 by 2025. He mentioned that it’s not unreasonable to expect Bitcoin to eventually capture around 25% of gold’s market share, up from approximately 10% today. Should Butterfill’s $80,000 prediction come to fruition, it may be attributed to President Trump not executing his promised pro-crypto initiatives.
Moreover, several hedge fund managers are also eyeing Bitcoin, each with their own optimistic outlook. Cathie Wood of ARK Invest maintains her belief that Bitcoin could soar to $1.5 million by 2030. Known for her visionary projections, Wood presented this scenario at Ark’s Big Ideas 2025 conference, noting that the likelihood of achieving such a high valuation has increased. She has laid out three potential outcomes: a conservative estimate of $300,000, a moderate prediction of $710,000, and an aggressive scenario reaching $1.5 million.
Given these perspectives, is Bitcoin a worthy investment? Despite Bitcoin being one of the most renowned cryptocurrencies, it remains highly volatile and lacks transparency, which is more common in stock markets. Transactions are irreversible, and consumer protections are minimal or absent. Charles Schwab indicates that as long as Bitcoin continues to exhibit significant volatility and incurs large transaction fees, its practicality as a medium of exchange or a store of value seems limited. This context makes equities appear less volatile compared to cryptocurrencies like Bitcoin.
In compiling this list, we concentrated on S&P 500 stocks that demonstrated a price performance exceeding that of Bitcoin (92.73%) as of February 17. The stocks are organized in increasing order based on their one-year price performance. We also highlighted hedge fund sentiment surrounding each stock to enhance our understanding of their market position.
Why is hedge fund activity important? Simply put, our research indicates that mimicking the top stock selections of successful hedge funds can yield market-beating results. Our quarterly newsletter adopts a strategy that selects 14 small-cap and large-cap stocks every quarter, achieving a return of 275% since May 2014 and surpassing its benchmark by 150 percentage points (see more details here).
NVIDIA Corporation (NVDA): Among S&P 500 Stocks That Outperformed Bitcoin in 2024
An image showcasing a vibrant, high-end graphics card being installed in a gaming PC.
1-Year Price Performance: 99.93%
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) stands out as a leading innovator in the design and sale of Graphics Processing Units (GPUs), a field that has experienced substantial growth driven by heightened demand for artificial intelligence applications. Despite facing increased competition in the tech sector, NVIDIA continues to be a favorite on Wall Street.
On February 14, Blayne Curtis, an analyst at Jefferies, reaffirmed his Buy rating for NVIDIA Corporation (NASDAQ:NVDA) and set a price target of $185 for the stock. Curtis highlighted a positive shift in market expectations after Foxconn’s recent revenue report indicated a 3% growth. This revised projection from Foxconn, which suggests that its first-quarter sales growth in 2025 will likely outpace average estimates, is considered favorable for NVIDIA, particularly in light of concerns about potential delays in the rollout of its Blackwell product line.
Manole Capital Management discussed NVIDIA Corporation (NASDAQ:NVDA) in their Q3 2024 investor letter:
“Currently, Nvidia is up approximately 150% year-to-date. NVIDIA Corporation (NASDAQ:NVDA) was the top performer in the S&P 500 last year, having more than tripled in value over the past year. In June, it reached a market capitalization of $3 trillion, just a few months after surpassing the $2 trillion mark. The fervor surrounding AI has propelled the market, particularly for the primary chip manufacturer whose components are vital for AI technology. For five consecutive quarters, Nvidia has reported revenue and profits that exceed Wall Street’s expectations, with a 37% increase in stock value in just the second quarter.”
Overall, NVDA ranks 9th among our list of S&P 500 stocks that outperformed Bitcoin in 2024. While we see potential in NVDA as an investment, we believe that there are other AI stocks that may offer greater opportunities for substantial returns in a shorter timeframe. If you’re interested in an AI stock with strong potential that trades at less than five times its earnings, be sure to explore our report on the cheapest AI stock.
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Disclosure: None. This article was initially published by Insider Monkey.
