Nvidia’s eyebrow-raising results this week have prompted Jon Erlichman to remind again just how much investors could have made by backing tech stocks.
An investment in the chip maker ten years ago would have produced an astonishing 10,519% gain reported the Bloomberg anchor.
A hefty chunk of this came earlier in the week when the US chip maker saw its value jump by US$200bn or 25% in a day as it revealed sales this quarter would rise to US$11bn from US$7.2bn in the first.
"I can't remember a semiconductor/hardware company as big as NVDA (multiple billions in sales) ever surprising with a guide this much higher versus expectations in my 20 years covering technology stocks," said analyst Dan Ives at Wedbush.
10 year stock returns:
Nvidia: +10,519%
AMD: +4,342%
Tesla: +2,756%
Netflix: +1,010%
Meta: +985%
Apple: +984%
Microsoft: +846%
Adobe: +816%
Amazon: +779%
Alphabet: +467%
— Jon Erlichman (@JonErlichman) May 25, 2023
But it’s not just Nvidia that has produced such stellar returns for its backers.
Google owner Alphabet, the worst performer of the ten on Erlichman’s list, would have generated a 467% gain, next up Amazon has risen 779% and Adobe 816%.
At the top, AMD comes after Nvidia with a 4,342% rise while Tesla is up by 2,756%.
The tweet was notable enough, perhaps unsurprisingly, to spark a response from Elon Musk, who suggested only "for now" were Nvidia and AMD ahead of Tesla.
What is clear is that anyone who had the foresight to back tech at the start of the last decade is now an awful lot richer and after Nvidia's performance this week it would be a brave person to suggest this golden run is about to end anytime soon.