Harsh Chauhan, The Motley Fool
Sat, Apr 19, 2025, 5:45 AM 6 min read
In This Article:
Nvidia (NASDAQ: NVDA) has been 1 of the hottest stocks connected the marketplace successful the past 5 years, delivering singular gains of 1,300% to investors during this play and importantly outpacing the tech-laden Nasdaq Composite's returns of astir 100%.
The semiconductor giant's terrific upside tin beryllium attributed to the steadfast request for its graphics processing units (GPUs), which are powering aggregate applications ranging from artificial quality (AI) servers to cars to idiosyncratic computers to "digital twins." These aggregate extremity markets person led to outstanding maturation successful Nvidia's gross and net implicit the past 5 years.
Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now. Continue »
Nvidia's marketplace capitalization of $2.5 trillion makes it the third-largest institution globally. The bully portion is that Nvidia could present much gains successful the aboriginal acknowledgment to a sizable addressable marketplace that could let it to prolong steadfast gross and net maturation for years to come.
However, determination is different tech elephantine that could outpace Nvidia successful the agelong run, acknowledgment to its beingness successful respective multibillion-dollar extremity markets. Let's instrumentality a person astatine that sanction and cheque wherefore it has the imaginable to overtake Nvidia's marketplace headdress successful the adjacent 5 years.
Amazon.com (NASDAQ: AMZN) is the world's fourth-largest company, ranking down Nvidia with a marketplace headdress of $1.9 trillion. That spread puts Nvidia's marketplace headdress 30% larger than Amazon's.
Amazon has underperformed some Nvidia and the Nasdaq Composite implicit the past 5 years, registering gains of conscionable 45% during this period. Another happening worthy noting is that Amazon banal has mislaid astir 20% of its worth truthful acold successful 2025 amid broader weakness successful the banal marketplace owed to tariff-fueled unease.
However, the caller pullback means that investors present person an accidental to bargain a coagulated tech institution that tin payment from aggregate lucrative markets astatine an charismatic valuation. Amazon is 1 of the starring e-commerce companies successful the world, and it besides dominates the monolithic unreality computing marketplace that's acceptable to get bigger acknowledgment to AI.
Amazon reportedly controlled 40% of the U.S. e-commerce marketplace past year. That's a large presumption to beryllium successful arsenic the U.S. e-commerce marketplace is expected to amusement a steadfast yearly maturation complaint of 15% done the extremity of the decade, generating yearly gross of implicit $19 trillion.