Nvidia (NVDA 1.36%) is the poster child of the artificial intelligence (AI) boom. Its powerful graphics processing units (GPUs) command a leadership position in the market for data centers. This has propelled tremendous growth in recent memory.
If you invested $1,000 in this top AI stock five years ago, here's how much you'd have today.
Image source: Nvidia.
Nvidia has been crushing the market
The S&P 500 index's five-year trailing total return of 91% (as of Feb. 11) is respectable.
However, it doesn't come close to Nvidia's 1,180% gain during the same time. This impressive performance would've turned a $1,000 starting sum in February 2021 into $12,810 today.
NASDAQ: NVDA
Key Data Points
Demand for AI chips is through the roof
The economy is experiencing an AI-fueled spending spree. And Nvidia is the main beneficiary of this infrastructure build-out. Its revenue in the fiscal third quarter of 2026 (ended Oct. 26) was up 62% year over year. And it was 1,113% higher than the same period in fiscal 2021. That has lifted the business to a monster market cap of $4.6 trillion.
There are some investors out there worried that we're in the middle of an AI bubble that's ready to pop. While it's always smart to understand any risks, it's also very easy to remain bullish on Nvidia shares. That's because they trade at a reasonable forward price-to-earnings ratio of 24.7.
