Why Nvidia’s longer-term future return is not worth the risk — even if it continues to be a phenomenally profitable company. Nvidia Corp.’s market performance over the past six months is a good illustration of the difference between a good company and a good stock.

Nvidia, the chipmaker that fueled 22% of the S&P 500’s total returns in 2024 with a 171.25% stock surge, continues to ride the AI wave into 2025.

Nvidia has led the artificial intelligence boom to become one of the stock market’s biggest companies, as tech giants continue to spend heavily on the company’s chips and data centers needed to train and operate their AI systems.