Nvidia (NVDA) is 35% better investment than Bitcoin in 2024 despite BTC price rally

In 2024, Bitcoin (BTC) recorded triple-digit gains and even breached the long-awaited milestone price of $100,000 in early December.

Despite BTC’s significant rise throughout the year, Finbold research found that the semiconductor giant Nvidia (NASDAQ: NVDA) delivered even higher returns than Bitcoin.

An investment in Bitcoin made at the start of 2024 would have yielded a return of 139.72% by Thursday, December 12. In comparison, Nvidia stock would have appreciated 188.47% over the same period, making NVDA’s gains 1.35 times higher than BTC’s and offering a 35.7% greater return on investment (ROI).

Nvidia stock’s valuation grew 87% more than Bitcoin’s in 2024

The discrepancy between the two star investments is even more obvious once their respective market capitalizations are considered.

Bitcoin’s valuation stood at approximately $830 billion at the beginning of the year, and it rose to almost exactly $2 trillion by press time. In total, BTC’s market cap rose by $1.17 trillion in 2024.

Still, as impressive as the cryptocurrency’s rise is, Nvidia stock managed an even greater increase of $2.19 trillion, rising from $1.22 trillion at the start of January to $3.41 trillion on December 12.

When did Bitcoin outperform NVDA stock?

Furthermore, and in large part because NVDA shares’ path has been significantly more straightforward since 2022, the semiconductor giant has also been the superior investment within longer time frames thanks to the magnitude of the ongoing artificial intelligence (AI) boom.

For example, a January 2023 Nvidia investment would have grown 835%, while a similarly timed BTC investment would have risen 494%.

The situation is similar with a purchase executed at the start of 2020, as NVDA stock is up 2,255.9% within the time frame, while BTC has surged 1,273.2%.

However, an investment made in Bitcoin at the start of 2015 would have outperformed an Nvidia stock trade, as the cryptocurrency has rocketed 36,000% since then and the chipmaker 27,000%.

Finally, though one might expect dividends to increase NVDA shares’ advantage as an investment, given that Bitcoin offers no such benefits, the semiconductor giant’s yield is so trivial at 0.029% that it hardly alters the total return on investment —a $1,000 investment made at the start of 2024 would have yielded less than $1 in dividend payouts.

Featured image via Shutterstock