nvidia (NASDAQ: NVDA) and Bitcoin (Cryptography: BTC) It doesn’t have much in common, but it’s two of the best performance investments in the last five years, erasing the S&P 500 (snpindex: ^gspc) Several digit index:
NVDA data by YCHARTS
If you had taken $10,000 just five years ago and split it equally between Nvidia stocks and Bitcoin, it would be worth a whopping $139,000 today. The same investment in the S&P 500 is worth just $19,306.
A series of unique tailwinds can be driven even more upside down this year with both Nvidia stock and Bitcoin, but I think one is a better purchase than the others. Please read more.
Image source: nvidia.
Nvidia offers the world’s most powerful graphics processing units (GPUs) for data centers used to develop artificial intelligence (AI) models. Recently, we have begun shipping the latest GB200 GPUs based on the new Blackwell architecture, offering up to 30 times (specific configurations) compared to the company’s older flagship H100 chips.
However, recent innovations in the AI space have sparked concerns that chip demand could collapse in the future. For example, a China-based startup called Deepseek used a set of clever techniques to train V3 and R1 AI models with some of their fellow US computing powers, such as Openai, but provided comparable performance on some benchmarks.
However, many of the industry’s top developers are now away from traditional pre-training workloads, assigning computing power to test time scaling and instead improving the model. This includes AI models that spend extra time “inferencing” or “thinking” during the inference phase before generating a response to a user’s query. This means that you can make better use of the knowledge you already have.
Deepseek, Openai, Humanity, Metaplatform, and others focus on developing inference models that utilize test time scaling. According to Nvidia CEO Jensen Huang, these models consume 100 times more calculations than their predecessors. This means that the decline in traditional training workloads can probably be offset by higher inference workloads. As a result, Nvidia’s GPUs should remain hot for years to come.
Nvidia recently reported its financial results for fiscal year 2025 (ends January 26th), recording a record $1300.5 billion revenue, up 114% from the previous year. That total of over $115 billion came from the data center segment, which represented 142% growth.
Metaplatforms, Alphabet, Microsoft, and Amazon are some of NVIDIA’s biggest clients and are projected to spend more than $300 billion on AI data center infrastructure and chips in 2025. As a result, NVIDIA can be set up for another big year.
Bitcoin is the world’s largest cryptocurrency. In fact, the $1.7 trillion market capitalization accounts for more than half of all tokens and coins in circulation throughout the industry.
Bitcoin’s popularity stems from its decentralized structure, capping and secure system of records known as blockchain. These qualities generate the perception that it is a good storage for investors, which is often compared to the digital version of gold. That perspective was somewhat validated last year when the Securities and Exchange Commission (SEC) approved dozens of Bitcoin Exchange Trade Funds (ETFs) to provide financial advisors and institutional investors with a secure, regulated way of owning cryptocurrency.
The SEC is set to be further encrypted this year. President Donald Trump has appointed Mark Weda until his official candidate, Paul Atkins, is confirmed by the Senate. Uyeda has already suspended aggressive lawsuits against cryptography giants like Binance, and Atkins is co-chair of an advocacy organization called the Token Alliance, so the agency could support the industry more than ever before when he takes office.
Additionally, President Trump signed an executive order last week that could encourage the establishment of strategic Bitcoin reserves within the US government. For now, it’s not a clear fundamental tailwind for cryptocurrency, as the government only holds $18 billion worth of coins it previously seized from criminals. But strategic preparation may pave the way for the US government to become Bitcoin buyers in the open market.
In the long run, Cathie Wood’s ARK Investment Management believes that many governments, and even businesses, can hold Bitcoin on their balance sheets in the future to offset economic headwinds like inflation. This is one of eight factors that Ark believes he can send Cryptocurrency to $1.48 million per coin by 2030, a whopping 1,560% reverse from where it is traded at the time of this writing.
Image source: Getty Images.
Nvidia stocks and Bitcoin are two fundamentally different assets. Nvidia generates real, concrete revenue and revenue, so it can be easily evaluated using traditional metrics such as price to revenue (P/E) ratios. Bitcoin doesn’t produce anything and doesn’t have many utilities in the real world. Despite many investors consider it a valuable store, only 6,935 companies around the world are trying to accept it as payment for goods and services.
In other words, Bitcoin is a technically speculative asset, so it is extremely difficult to pinpoint its true value. So, I think Nvidia will be a better purchase in 2025, especially considering the current ratings.
The stock is trading at a P/E ratio of 37.6 at the time of this writing, with a 36% discount of an average of 59.4 in 10 years. Additionally, Wall Street consensus estimates (provided by Yahoo!) suggest that NVIDIA can generate $4.50 per share in 2026.
NVDA PE ratio data by YCHARTS
Simply put, Nvidia’s stock needs to rise 52% at a whopping 141% to maintain its current P/E ratio or to trade along the 10-year average. Unfortunately, we cannot make similar claims about Bitcoin.
Have you ever felt like you missed a boat when buying the most successful stocks? If you do that, you’ll want to hear this.
In rare cases, a team of analysts issue “double-down” stock recommendations for companies they think they are trying to pop. If you’re worried about having already missed the opportunity to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
nvidia:If you invest $1,000 when it doubled in 2009,There’s $292,207! *
Apple: If you invest $1,000 when it doubled in 2008, then $45,326! *
Netflix: If you invest $1,000 when it doubled in 2004, then $480,568! *
Currently, we are issuing “double-down” alerts to three incredible companies, and we may not have a chance like this anytime soon.
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*Stock Advisor will return as of March 3, 2025
Randi Zuckerberg, a former director of market development, Facebook spokeswoman and sister to Metaplatform CEO Mark Zuckerberg, is a member of Motley Fool’s board of directors. John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of the board of directors of Motley Fool. Anthony di Pizio does not occupy any of the stocks mentioned. Motley Fool has positions for Alphabet, Amazon, Bitcoin, Meta Platforms, Microsoft, and Nvidia, and is recommended. Motley Fool recommends the following options: A $395 phone at Microsoft for January 2026 length and a $405 phone to Microsoft for January 2026 short term. Motley Fools have a disclosure policy.
Better Buys in 2025: Nvidia Stocks or Bitcoin? Originally published by The Motley Fool
