Spending on artificial intelligence (AI) infrastructure has become a major contributing factor to the overall growth of the U.S. economy in recent times. And there's been no bigger beneficiary than Nvidia (NVDA +3.80%).
If you had bought $1,000 of Nvidia shares exactly one year ago, here's how much your position would be worth today.
Image source: Nvidia.
Nvidia is still beating the market
In the past 12 months, Nvidia shares produced a total return of 30% (as of Dec. 12). So, if you purchased $1,000 of the stock in mid-December 2024, you'd have $1,300 right now. Over a five-year stretch, its total returns exceeded 1,200%.
By comparison, the S&P 500 returned 14% during the last year.
NASDAQ: NVDA
Key Data Points
The stock's valuation is attractive
There are definitely investors out there who have remained on the sidelines watching Nvidia take off like a rocket ship. Thankfully, it's not too late to buy this leading AI stock. Its current forward price-to-earnings ratio of 23 is compelling for a business that grew its net income by 644% from its fiscal 2022 through its fiscal 2025 (which ended Jan. 26, 2025).
Of course, the bears will point to the assertion that the AI market is in a bubble that's ready to burst. This is a near-term risk that would pressure Nvidia's share price.
