Nvidia Stock Tops All Other Megatech Companies

By Douglas A. McIntyre Published Feb 20, 7:00AM EST

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Nvidia Stock Tops All Other Megatech Companies — © BING-JHEN HONG / iStock Editorial via Getty Images

It is simple math. So far, Nvidia stock is up 46% this year. Meta’s is up 34%, while Amazon’s is up 7%, Alphabet’s is flat, and Apple’s is down 5%. What happened?

Other than Nvidia Corp. (NASDAQ: NVDA | NVDA Price Prediction), each megacap tech company has a large footprint in what could be called old technology. In the case of Microsoft Corp. (NASDAQ: MSFT), this is operating systems and hardware. For Apple Inc. (NASDAQ: AAPL), most of its business is hardware-based.

As for Alphabet Inc. (NASDAQ: GOOGL), search is over two decades old, although its capacity has been improved. Amazon.com Inc. (NASDAQ: AMZN) is the leader in e-commerce, a three-decade-old business. And it has AWS, the cloud leader, but AI valuations have eclipsed even the investment metrics for the cloud.

Meta Platforms Inc. (NASDAQ: META) is the leader in social media by far. But it is a two-decade-old business, the revenue growth pace of which has slowed.

AI Boosts Nvidia Stock

Each of these companies has pushed into artificial intelligence, but Nvidia has close to a monopoly on the chips on which AI runs. The stock market has driven Nvidia’s share price higher for a specific reason. The Motley Fool pointed out, “There’s good reason to believe Nvidia is a top AI stock. Management attributes its surging revenue to AI-related products and services. To illustrate how strong demand is, the company expects to report revenue of $20 billion in its fiscal 2024 fourth quarter. That would be a 231% year-over-year increase — simply astounding for a company of this size.” (Wall Street loves these five AI stocks.)

If AI revenue continues to grow across thousands of companies and tens of millions of people (or more) that use it, Nvidia’s position at the center of AI will only grow. Nvidia stock could outperform other megacaps for a very long time.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.