Invest in the S&P 500 The index has long been an excellent way to take advantage of the growth of the economy. But in many cases, the purchase and holding of individual actions have led to much more impressive gains. Although there have been many disorders on the markets recently, a simple purchasing and maintenance strategy has been incredibly well worked.
Over the past 10 years, the S&P 500 has increased by 174% (assuming a limit of April 1). But during this same period of time, a flea manufacturer Nvidia (Nasdaq: NVDA) Produced almost 21,000% gains for investors. To put this in perspective, this means that an investment of $ 5,000 in the company 10 years ago would have reached a value of more than a million dollars now. In comparison, the same size investment in the S&P 500 is less than $ 14,000.
Nvidia was an incredible growth stockAnd it was a bit of an anomaly – no other stock of the index was almost generating the same types of yields in the last decade. Below, I’m going to look at who is in the second place, and how close its yields are close to Nvidia.
The second high -efficient stock on the S&P 500 in the last decade is none other than the Nvidia rival Advanced micro-apparents (Nasdaq: AMD)more commonly called AMD. During the same period of time that Nvidia has increased by almost 21,000%, AMD raised gains by more than 3,700%. An investment of $ 5,000 at the start of this period would have reached a value of $ 191,000. It is always an impressive performance, but unfortunately, everything may seem modest compared to Nvidia.
For the most part, however, the two technological actions have performed well. The Grand Delta emerged in 2023 and became more important when Nvidia became synonymous with artificial intelligence (IA). Its AI chips have been crucial for companies that develop AI chatbots and improve their products and services with new generation capacities. While AMD also makes AI fleas, he was lagging behind Nvidia, and investors and analysts do not seem convinced that these chips will be competitive and will take on significant importance market share.
AI was a gigantic catalyst for Nvidia, its growth rate exceeding 200% last year. Although this fell as the company hung incredibly solid performance, its growth rate remains much higher than that of DMLAs, which is why it was the most lucrative investment to have.
The AMD growth rate has increased, and the gap between these two companies may be able to shrink in the future. AMD launched its last AI chips at the end of last year; The way they behave could be essential to determine how well its growth rate ends up being good and how the stock behaves in relation to its rival.