£ 2k inverted in Nvidia shares 2 years ago now this amount of marginalization is worth …

I am a long -term investor. Turning actions on a day to day is not something that I approach. Investors with this type of mentality are sometimes lost short -term profits. However, being patient and having an action can really bear fruit. For example, if an investor had put £ 2k in Nvidia (Nasdaq: NVDA) Stock A couple of years ago, this is what would be worth now.

Exceptional gains

Exactly two years ago, Nvidia shares quoted just above $ 21. The current price reflects a 510% jump on the period in question. That means that the £ 2k would currently be worth £ 12.2k. It is very impressive to think that an investment of that size could become a sum of five figures in the space of a couple of years.

Okay, Nvidia has been at the forefront of the ai ​​boom during this period of time. The superior performance of this sector can only be observed when comparing the return with the S&P 500 at a broader level. The index has increased by 47.3%, which is a gain for which to be happy. However, the marked difference between that and Nvidia really shows the scope of the rally in the individual stock.

Another barometer to compare performance is to evaluate it with the magnificent 7. This group of shares has been the dear ones in the market. In addition to Nvidia, the group is Tesla, Microsoft, Apple, amazon, Goaland Alphabet. In the last two years, it has increased by 262%.

So, even with this comparison, Nvidia is still in the head and shoulders over the rest.

Digging deeper

The main reason for the profits comes from the explosive boom of ai. The competitive advantage of the business, along with the ability to sell ai chips at premium prices, has helped feed income and earnings. The demand for the training of ai shot with the increase of chatgpt and the generative ai, feeding the orders of the H100 and A100 high performance of NVIDIA.

It is worth adding that part of the rally is also due to the speculation of retail investors. The exaggeration around the company is real, which means that for many retail investors, it is the obvious place to resort if they want exposure to ai as a subject.

Looking towards the future, I don't think the party has finished, but I see risks ahead. The increase in Deepseek in recent weeks shows that the space of ai is becoming more competitive and a lower price level. Although this may not be something bad in the long term for NVIDIA, it could scare some short -term investors.

Another risk is that the first Nvidia movement advantage in the last two years was unique, and the price performance of the shares reflects it. I have trouble seeing how the next two years can replicate that, since it is unlikely that the rhythm of innovation and adoption is the same.

THE LOB OF THE EARTH

The conclusion is that any investor that Nvidia owns for this period of time has done it exceptionally well. Although I would not sell my actions if I possessed it, I am not willing to buy it today, since I feel that there are better options out there.