How does Nvidia stack up against the rest of the S&P 500?
Nvidia, a chipmaker which 10 years ago was worth just $11 billion, is now the world’s largest company by market capitalization. Its latest upswing, a 10% gain in the last 5 days, has taken NVDA to a $3.35 trillion market cap — more than Microsoft, Apple... and everyone else.
So, NVDA is now ranked #1 on market cap, but what about other metrics?
Although the stock’s surge has been remarkable, there is financial momentum to support its valuation (whether it’s enough, however, is a question for analysts). Indeed, although Nvidia is only the 37th largest S&P 500 company by revenue, it’s actually the 4th most profitable in the entire index, pipped only by the rivals it has recently passed in market cap (Microsoft, Apple, Alphabet).
But, most importantly, Nvidia represents that which investors can never get enough of: growth. In the most recent quarter reported, the average S&P 500 company posted 5% revenue growth year-on-year. Nvidia notched 262%, the most of any company in America’s flagship index.
In fact, the only metric on which Nvidia is anywhere near the middle of the pack is number of employees, which throws up some interesting comparisons.
Although the stock’s surge has been remarkable, there is financial momentum to support its valuation (whether it’s enough, however, is a question for analysts). Indeed, although Nvidia is only the 37th largest S&P 500 company by revenue, it’s actually the 4th most profitable in the entire index, pipped only by the rivals it has recently passed in market cap (Microsoft, Apple, Alphabet).
But, most importantly, Nvidia represents that which investors can never get enough of: growth. In the most recent quarter reported, the average S&P 500 company posted 5% revenue growth year-on-year. Nvidia notched 262%, the most of any company in America’s flagship index.
In fact, the only metric on which Nvidia is anywhere near the middle of the pack is number of employees, which throws up some interesting comparisons.
