According to research conducted by price comparison website finder.com, NVIDIA has emerged as the top-performing stock of 2023. As of 15 September 2023, the company's share price has more than tripled, resulting in a significant return on investment for shareholders. A fictional investment of £1,000 at the beginning of the year would have returned £3,067 after 177 market days.
The success of NVIDIA can be attributed to the ongoing hype surrounding artificial intelligence (AI) in the mainstream media. The California-based tech giant has consistently ranked among the top three stocks since the start of 2023 and has outperformed its competitors for the past 96 market days.
While NVIDIA takes the lead, investors in Meta and Tesla have also witnessed substantial returns. The value of both stocks has more than doubled, with Tesla's shares up by 154% and Meta's shares up by 141% as of 15 September 2023. A fictional investment of £1,000 in Tesla would have yielded a return of £2,538, while the same investment in Meta would have resulted in £2,407.
Overall, the 10 most popular stocks of 2023 have provided average returns of nearly 70%. If an investor had allocated £100 to each of these stocks at the beginning of the year, they would have made gains of £686 on their initial investment by 15 September 2023. In comparison, placing £1,000 in an easy access savings account with an interest rate of 5.12% would have resulted in gains of only £37, highlighting the significant difference in returns between investing and saving.
It is important to note that investing comes with inherent risks, and capital is always at stake. While most of the 10 most popular stocks have generated positive returns, two stocks, PayPal and Alibaba, have experienced a slight decline in value. PayPal's shares were down by 13.9%, while Alibaba's shares were down by 5.3% as of 15 September.
George Sweeney, an investing expert at finder.com, highlights the impact of AI on the market and cautions investors about potential bubbles. While the future looks promising for the AI sector, investors should approach investing in emerging sectors with caution. Conducting thorough financial analysis and considering the long-term prospects of popular stocks can help manage expectations and minimize risk.
– Research by price comparison website finder.com