Between 2023 and 2024, Nvidia’s share price recorded a sensational boom, in some ways even similar to that of Bitcoin.
However, these are two very different assets that are taking different paths, so the only thing they really have in common is the boom in the financial markets.
The first Nvidia stock price boom: the stock follows Bitcoin
Nvidia stock (ticker NVDA) began trading on the Nasdaq even in the last century.
Until 2015 it had had a fairly classic trend, with the boom during the dot-com speculative bubble at the end of the last century, when the price of its shares went from around $0.50 to over $3.50 in the space of just 12 months. months, but not followed by a major collapse.
For example, in January 2002 it even briefly exceeded $6.
Up to and including 2015, i.e. for 14 consecutive years, it continued to fluctuate between approximately $0.7 and $9, i.e. at levels increasingly higher than those of 1998, but not much higher than those of 2002.
Although the most sensational boom occurred in recent months, in reality the stock had started to grow on the stock market again in 2016, so much so that at the end of 2018 it had even exceeded $70.
So during the dot-com bubble, and in the years immediately following, it recorded a sensational +1,800%, and then corrected a bit and resumed its upward path in 2016, when it recorded another +680% in within just two years.
At that point in less than 20 years he had accumulated earnings worth an incredible +13,000%.
Bitcoin is not 20 years old, but only 15, even though since it has been traded on exchanges the percentage of gain is even higher, by far, than that of Nvidia from 1999 to 2018.
The second boom
However, Nvidia shares did not stop at $73 in October 2018.
Indeed, in February 2020, shortly before the start of the pandemic, the price of its shares had returned above $70, after a brief correction, and with the collapse of the financial markets in March 2020 it only fell to $45, but only to return to grow starting from the following month.
This second boom continued until 2021, recording the new all-time high of the time a few weeks after that of Bitcoin.
In other words, between 2019 and 2021 it managed to rise above $300, with another +370% after the +1,800% of the years 2000 and 10, and the +680% before the pandemic.
At that point the 2022 retracement began and affected almost all financial markets, including Bitcoin, so much so that in October of the same year the price of Nvidia shares had fallen below $110.
However, it was still much higher than the $79 of February 2020, but its run did not end there.
NVIDIA Stocks: Third Boom Follows Bitcoin Price
In fact, during 2023 the price of Nvidia shares began to rise again.
After returning above $300 in May last year, it then took flight further to an all-time high of over $960 in March 2024.
At that point from the peak of 2021 it had recorded another sensational +181% in just over a year, which brought the earnings since February 2020 to +1,100%.
In summary, after recording an initial +1,800% from 1998 to 2016, it strung together another series of strong gains, in increasingly shorter times: +680% in two years from 2016 to 2018, followed by another +370 % in two years from 2019 to 2021, punctuated by the collapse in March 2020 due to the start of the pandemic, and then finally another +181% in just over a year between 2023 and 2024.
The current price of around $824 is even 200,000% higher than the $0.4 price in October 1999.
But if a +200,000% in 25 years may seem like a lot to some, it should be remembered that Bitcoin has recorded a sensational +100,000,000% in the last 14 years.
However, the difference is mainly made by the initial price of BTC, which was almost zero, because if we instead take as a reference the price it had at the end of 2012, at the time of the first halving and before the start of the first speculative bubble, the gain it “reduces” to a still sensational +600,000%.
Although there are no major stocks that are able to compete with Bitcoin in recent times in terms of percentage gain over the last 15 years, Nvidia is probably the closest among the top stocks.
The timing of growth
The growth in Nvidia’s stock price in 1999 and 2000 was most likely due in large part to the so-called dot-com bubble.
But since Nvidia’s stock price has never returned to pre-bubble levels since then, that means it wasn’t just a bubble.
Nvidia was one of the few stocks that didn’t collapse after the dot-com bubble burst, and what it did next amply demonstrated that its rise in value was organic and justified.
Although there was a strong retracement during 2002, from $6 to less than $1, the following year its share price was back above $2, and in 2006 it was even back above $5.
Therefore it can be said that the first phase of growth, characterized by very strong swings also partly due to the bursting of the dot-com bubble, lasted for a good eight years, although characterized by various ups and downs.
That phase was practically followed by nine years of lateralization, characterized however also by a downward excursion to below $2.
Things changed starting in 2016, when a three-phase growth cycle began that appears to still be ongoing. Since then the overall gain achieved is 9,000%, in less than eight years.
This phase of growth, however, was not uninterrupted, but divided into three phases.
The first lasted until October 2018, and was followed by a not particularly sensational retracement.
The second began after the outbreak of the pandemic, and continued until the end of 2021.
The third, which began last year, may still be underway.
