šš¼ Hello friends! Let's enjoy a leisurely Sunday Drive around the internet.
š¶ Vibin'
This Polar Vortex has GOT TO GO! (h/t to Chris Rock)ā¦ When Pensacola, FL gets six inches of snow, itās time to re-think what winter is all about.
So this week, Iām vibinā to The Coastersā Down in Mexico and thinking warm thoughts.
š Ā Quote of the Weekā
āWe have to invest in the world we live in, and not the world we want.ā
ā Charlie Munger
š Ā Charts of the Week
The first Chart this week shows the performance of NVIDIA (NYSE: NVDA) over the last few years. In particular, the run the stock has had since early 2023 has been breathtaking.
The AI boom, sparked by advancements like ChatGPT, created an unprecedented demand for NVIDIAās GPUs, cementing its position as the leader in AI hardware. The companyās dominance in this space is evident through its skyrocketing revenue and major financial milestones.
In fiscal year 2024, NVIDIA posted a staggering $60.9 billion in revenue, up 126% year-over-year. Its data center revenue alone grew 409% in Q4, and the companyās market cap crossed $3 trillion in 2024, placing it among the worldās top five most valuable companies.
Several market forces have shaped NVIDIAās journey. The COVID-19 pandemic accelerated demand for gaming and AI-driven solutions, while cryptocurrency booms introduced periods of volatility. NVIDIAās leadership in GPUs also positioned it as a critical supplier to major tech firms and supercomputing projects, reinforcing its dominance.
NVIDIAās performance has largely been a function of innovation, market strategy, and timingāits ability to maintain this trajectory will depend on continued AI adoption and successful execution of its roadmap.
Itās been a pretty easy ride the last few years, but it hasnāt always been.
If you invested $1,000 in NVDA when the company went public in January of 1999, that investment would now be worth a whopping $5.7mm today. Holy cow! š
But waitā¦ What level of volatility would an investor have had to endure in order to earn that epic level of return on their investment over the last 26 years?
The second Chart this week shows the drawdowns in NVDA stock since its IPO. Thereāve been quite a few of the 20%+ variety, but also multiple drops of greater than 80%. Some of those drawdowns lasted for years.
The relationship of risk and return, at least at the individual stock level, is widely understood and investors are often told about the importance of staying invested. Butā¦ Sometimes thatās easier said than done.
Sources:
1. Investing.com
2. LibertyRPF.com
3. YCharts
š Interesting Drive-By's
š No More Recessions?
š Out of Sight, Out of Loan: Hidden Leverage
š” You Need to be Wholesome-Maxxing
šø The $84 Trillion Wealth Transfer is a Fantasy
š¤ AI Demand Leads to āGPU-as-a-Serviceā Industry
š¤ Can We Actually Build Stargate?
šš¼ Parting Thought
If you have any cool articles or ideas that might be interesting for future Sunday Drive-by's, please send them along or tweet 'em (X āem?) at me.
Please note that the content in The Sunday Drive is intended for informational purposes only, and is in no way intended to be financial, legal, tax, marital, or even cooking advice. Consult your own professionals as needed. The views expressed in The Sunday Drive are mine alone, and are not necessarily the views of Investment Research Partners.
āI hope you have a relaxing weekend and a great week ahead. See you next Sunday...
Your faithful financial provocateur,
-Mikeā
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