But if we look at the graphs, we see something surprising:
NVIDIA is the Magnificent 7 company that has risen the most on the stock market. No less than 1,500% in the last 5 years! Nvidia already accounts for 8% of the entire S&P 500 and leaves behind the second that has performed best in this period, Alphabet, with a profitability of 230%.
If we compare Nvidia with other stocks that have nothing to do with AI – which is the big trend in the market – we can find a surprise.
Nvidia in 5 years is clearly the winning asset for profitabilitywith increases of more than 1,500% in the period. But there are also entities like Banco Sabadell that have earned 1,100% in the last five years and other banks have offered a return of more than 400%.
The bad news? Surely many investors have not taken the profitability of Nvidia and Spanish banks in recent years.
If we look at the graphs so far this year, all Spanish banks are earning more than Nvidia, despite the great prospects that the company has as it is the basis of Artificial Intelligence.
Without a doubt a complete surprise. It has been the banks that have turned the Ibex 35 into one of the best stock indices in the world.
But where is the market going? Will banks and Nvidia continue to be the winners in the stock market? We seek the opinion of Investment Strategies analysts.
Carlos Arenas, Ei fund analyst and doctor in economics recognizes that Spanish banking has surpassed technology thanks to the environment of high inflation and interest rates, which has boosted its margins, capital gains and asset value compared to the most growth sectors. And as long as inflation remains not completely controlled, value assets – such as banking – should continue to show better relative performance compared to growth assets, such as technology.
For its part, María Mira, fundamental analyst at Ei ensures that the sectoral analysis shows that Spanish banking maintains a solid, efficient and profitable business, with controlled risk and reasonable prices. Bankinter, BBVA and Sabadell stand out for their strength and profit growth, while CaixaBank shows more weakness. The efficiency of Spanish banking exceeds that of Europe, although the average solvency (13.6%) is somewhat lower than that of Europe (15.5%). In profitability, Spanish banks (14.4%) clearly surpass European banks (9%). Unicaja and Sabadell are still considered undervalued with upside potential. And Nvidia? José Antonio González, director of technical analysis at Ei Analyze what the charts say and what are the next levels these stocks can visit.