This Stock Has Tripled Nvidia’s 268% 2-Year Return — And Is Joining the S&P 500 This Month

By Rich Duprey Published Sep 8, 12:41PM EDT

Key Points

Nvidia’s 268% two-year return is driven by AI chip demand, making it the most valuable stock at over $4.1 trillion.
Another stock achieved a 980% return, 3.66 times Nvidia’s performance, since its July 2021 IPO.
It’s not the fastest to join the S&P 500, but its inclusion later this month reinforces that its growth trajectory remains strong.

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This Stock Has Tripled Nvidia’s 268% 2-Year Return — And Is Joining the S&P 500 This Month — © ipopba / Getty Images

The artificial intelligence revolution has transformed Nvidia (NASDAQ:NVDA | NVDA Price Prediction) into a market juggernaut. Since the AI boom took off, Nvidia’s H100 and Blackwell chips have faced soaring demand, driving a 268% return over the past two years.

With a market cap exceeding $4.1 trillion, Nvidia reigns as the world’s most valuable stock. Yet, another company has outshined it, delivering a staggering 980% return — 3.66 times Nvidia’s performance — over the same period.

Public since July 2021, it’s now about to join the S&P 500. That’s not the fastest time a stock has been added to the index — Airbnb (NASDAQ:ABNB) at 2 years and 9 months just might be the recordholder — but few have matched its speed, and its growth trajectory appears unstoppable.

A Financial Disruptor

Robinhood Markets (NASDAQ:HOOD) has redefined retail investing since its 2021 IPO. Launched in 2013, the company’s commission-free trading platform democratized access to financial markets, attracting millions of younger, tech-savvy investors. Its user-friendly app, gamified interface, and focus on accessibility disrupted traditional brokerages, positioning Robinhood as a leader in the fintech revolution.

Set to join the S&P 500 on Sept. 22, Robinhood’s inclusion marks a milestone, reflecting its rapid growth and market significance just over four years after going public.

Fueling the Meteoric Rise

Robinhood’s core innovation — zero-commission trading — removed barriers for retail investors, particularly millennials and Gen Z. The platform boasts 23 million funded accounts, driven by its intuitive mobile app and features like fractional share trading.

This accessibility fueled user growth, especially during the 2021 meme stock frenzy, when Robinhood became the go-to platform for trading stocks like GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC).

Robinhood’s growth isn’t just about trading volume. The company expanded into crypto trading, retirement accounts, and high-yield savings products, diversifying its revenue. Payment for order flow, though controversial, remains a significant income source, supplemented by subscription services like Robinhood Gold, which offers premium features like margin trading and enhanced data.

In the second-quarter, Robinhood reported a 45% year-over-year revenue increase, reflecting its ability to monetize its growing user base.

The company capitalized on macroeconomic trends, including rising interest in alternative assets like cryptocurrencies and the democratization of finance. Its crypto offerings, including Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) trading, surged in popularity as digital assets gained mainstream acceptance.

Additionally, Robinhood’s focus on financial education through in-app tools and content has fostered user loyalty, positioning it as a trusted partner for first-time investors navigating complex markets.

Robinhood’s acquisition of AI-driven wealth management platforms and partnerships with fintech startups have bolstered its technological edge. Investments in machine learning enhance its app’s personalization, improving user engagement.

The company’s push into international markets, particularly in Europe and Asia, has expanded its addressable market, with early 2025 reports showing strong adoption in the UK.

Why Robinhood’s Growth Could Continue

Robinhood’s digital-first model allows it to scale rapidly without the overhead of traditional brokerages. As global smartphone penetration grows, the company can tap into emerging markets where retail investing is nascent. Its low-cost structure ensures competitiveness, even as rivals like Schwab and Fidelity adapt to the commission-free trend.

Robinhood’s focus on younger investors aligns with demographic shifts. By 2030, millennials and Gen Z will control a larger share of global wealth, and Robinhood’s brand resonance with these groups positions it to capture their growing investment dollars. Its social media integration and community-driven features keep it relevant in a digital-native world.

Despite past regulatory scrutiny over practices like payment for order flow, Robinhood has adapted, implementing transparent disclosures and diversifying revenue to mitigate risks. Its ability to navigate complex regulatory landscapes while maintaining user trust underscores its operational maturity.

Key Takeaway

Robinhood’s inclusion in the S&P 500 later this month is a catalyst for near-term growth. A 2023 study by S&P Dow Jones Indices found that stocks added to the S&P 500 often experience a 5% to 10% price increase in the months following inclusion, driven by increased demand from index funds and institutional investors. This “index effect” could propel Robinhood’s stock further, given its $103 billion market cap and high trading volume.

Beyond this boost, Robinhood’s fundamentals are robust: a scalable platform, diversified offerings, and a loyal user base. With levers like international expansion, AI innovation, and new product launches, Robinhood is poised to sustain its momentum for years, making it a compelling player in the fintech space.

About the Author Rich Duprey →

After two decades of patrolling the dark corners of suburbia as a police officer, Rich Duprey hung up his badge and gun to begin writing full time about stocks and investing. For the past 20 years he’s been cruising the markets looking for companies to lock up as long-term holdings in a portfolio while writing extensively on the broad sectors of consumer goods, technology, and industrials. Because his experience isn’t from the typical financial analyst track, Rich is able to break down complex topics into understandable and useful action points for the average investor. His writings have appeared on The Motley Fool, InvestorPlace, Yahoo! Finance, and Money Morning. He has been interviewed for both U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, and USA Today.