Nvidia Is on Track to Beat the S&P 500 for the 4th Straight Year. Should Its $500 Billion AI Infrastructure Financing Plan Give Investors Pause?
The chipmaker's partnership with six financial institutions will help diversify its customer base beyond hyperscalers and neoclouds.
Overview
Since the start of 2023, Nvidia (NASDAQ: NVDA) has given its shareholders a staggering 1,440% total return compared to a 113.2% total return for the S&P 500 (SNPINDEX: ^GSPC). As of market close on Aug. 14, Nvidia was the best-performing "Magnificent Seven" stock year to date and the only one outperforming the Nasdaq-100 -- putting the chipmaker on track to beat the S&P 500 for the fourth straight year.
Here's what investors need to know about Nvidia's latest collaboration with major financial institutions, the risks involved, and why the deals could help Nvidia remain a long-term compounder for years to come.
Image source: Nvidia.
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Originally published at www.fool.com.