Which Is Worth More? $1,000 Invested in Nvidia 5 Years Ago vs. the S&P 500
A $1,000 investment in Nvidia five years ago would be worth almost seven times as much as the same $1,000 invested in the SPDR S&P 500 ETF Trust (SPY).
This is particularly impressive because the S&P 500 nearly doubled over the past five years, a return well above the index’s long-term average.
Here’s a look at the math behind the performance calculations, what it means going forward and what investors can do with this information.
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The 5-Year Math
According to total return data from FinanceCharts, the five-year total return for Nvidia was about 1,222% as of May 28. That means that $1,000 invested in NVDA five years ago would be worth about $13,221 today, with dividends reinvested.
By way of comparison, SPY had a five-year total return of about 92.35%. The same $1,000 invested in the popular S&P 500 index ETF would be worth about $1,924, according to FinanceCharts.
This return gap is enormous and it helps explain why Nvidia is one of the most popular, talked-about stocks of the modern era.
Why Nvidia Crushed the Index
Nvidia has long been a tech darling thanks to its graphics processing units or GPUs. For more than a decade, the company has been positioned at the head of nearly every advance in technology. Its GPUs are used for high-end video-game rendering, cryptocurrency mining and now multiple artificial intelligence (AI) applications, including data centers, cloud computing and AI model training.
As a result, Nvidia became the first company to blow through a valuation of $5 trillion and is now the most valuable company in the S&P 500.
For a company this large to continue posting outsized earnings gains is extraordinary, but Nvidia continues to do just that. In its most recent earnings report, Nvidia posted fiscal 2026 revenue of $215.9 billion, an astonishing 65% increase from the prior year.
The Stock Can Still Be Volatile
In the investment world, stocks like Nvidia that offer potentially huge gains also carry a high degree of risk. While the long-term performance of Nvidia has been nothing short of spectacular, when the stock sells off, it can correct sharply, according to PortfoliosLab.
In 2018, for example, when the SPY fell 4.57%, shares of Nvidia dropped 30.82%. Things were even worse in 2022, when the SPY fell 18.18%. Nvidia shares lost more than half of their value that year, cratering by 50.26%.
Of course, the stock has more than made up for these down years over time. But shareholders should be prepared for some significant ups and downs in exchange for the potential of high returns.
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Why the S&P 500 Still Matters
The returns of the S&P 500 over the last five years may pale in comparison to those of Nvidia, but that doesn’t mean you should put all your money into Nvidia.
For starters, the S&P 500 is a diversified investment. While it can be volatile, there’s much less risk that a single bad earnings report or industry shock will destroy the returns of the index.
And it’s not as if its returns have been modest. A 92% five-year total return is still strong, and it’s one that most investors, even professional ones, can’t beat.
Future Risks
One of the biggest dangers for investors is assuming that the next five years will look like the last five. Nvidia has great management and makes high-growth products for some of the most explosive industries in history. But future stock returns depend on what happens next, not what it has already accomplished. If its customers slow their immense spending on AI infrastructure, for example, Nvidia’s stock could drop significantly in value.
A stock can be a great company and still become a risky purchase if expectations get too high. That is especially true after a huge run. And while it’s easy to notice these stocks in hindsight, it’s much more difficult to find them in advance.
If you own Nvidia, check to see if it’s grown to an outsized portion of your portfolio. Speak with a financial advisor and consider trimming your position if it's too large. That way, you can take on less risk while still owning a great company.
Editor’s note: This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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