Investing $10,000 in Nvidia stock a decade ago and observing the returns today would reveal substantial profit growth.

In a decade marked by strong returns, the S&P 500 has proven to be a reliable investment choice, with an initial $10,000 growing to approximately $33,400. However, the tech giant Nvidia has outperformed the S&P 500 by a significant margin, according to data provided by YCharts.

If you had invested $10,000 in Nvidia a decade ago, you would be a multimillionaire today, with an approximate increase of 33,280%. This stunning growth trajectory has been propelled by Nvidia's stellar performance, which began in earnest in 2023 and has yet to show any signs of slowing down.

The high earnings multiple of Nvidia, currently trading around 41 times forward earnings, has sparked debate over whether the company is overvalued. Some question whether the AI boom, which has contributed to Nvidia's success, will eventually slow down. Yet, investors continue to pay a premium for Nvidia, reflecting their faith in the company's growth potential.

This premium is apparent when compared to other stocks in the market that trade at much higher multiples with less growth potential. One notable supporter of Nvidia is BlackRock, which has held the strongest investment in the company over the past ten years.

While the article does not provide specific details about the sectors or industries Nvidia is performing well in, it is known that the company has made significant strides in the gaming and automotive industries. As the technology landscape continues to evolve, it will be interesting to see how Nvidia's performance continues to shape up against the S&P 500 and the broader market.

Investing $10,000 in Nvidia stock a decade ago and observing the returns today would reveal substantial profit growth.