Comparing Bitcoin and AI Investment Trends
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 18 2026
0mins
Should l Buy NVDA?
Source: Fool
- Shift from Bitcoin to AI: Over the past six months, there has been a significant outflow of funds from Bitcoin, with many publicly traded Bitcoin mining companies shutting down operations and pivoting to AI computing, reflecting a strong market interest and potential returns in AI.
- Performance Comparison: Over the past five years, Nvidia's stock has surged by 1,266%, while Bitcoin has only increased by 28%, indicating that investor confidence in AI is surpassing traditional cryptocurrencies, which may lead to a decline in Bitcoin's long-term value.
- Mining Costs vs. Market Price: The current estimated cost to mine a Bitcoin is $87,000, while the spot price is around $70,000, putting economic pressure on miners and pushing them to seek higher returns in the AI sector.
- AI Bubble Risks: Despite the ongoing AI investment boom, analysts warn that AI may be in a bubble, with a significant gap between capital expenditures and revenue, making Bitcoin's long-term investment value still worthy of consideration, especially given its performance over the past decade.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 175.750
Low
200.00
Averages
264.97
High
352.00
Current: 175.750
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Capital Expenditure Trends: By 2026, the big four hyperscalers are expected to spend $650 billion, excluding expenditures from China and other major AI players, highlighting the increasing reliance on Nvidia's products in the market.
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See More
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- Long-Term Performance: Over the past decade, this ETF has generated a total return of 274%, translating to an annualized gain of 14%, demonstrating strong performance in volatile markets and attracting investors optimistic about the American economy.
- Tech Sector Dominance: The information technology sector accounts for 32.4% of the ETF's portfolio, with Nvidia, Apple, and Microsoft making up 19% combined, reflecting investor confidence in the future of artificial intelligence and its significance in the market.
- Market Volatility Strategy: Despite heightened market volatility, the Vanguard S&P 500 ETF is still viewed as an ideal long-term investment choice, as it is expected to provide stable returns for investors over the next five years and beyond.
See More
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- Nvidia's Market Dominance: Nvidia has achieved a 90% market share in GPUs, with parabolic revenue growth over the past few years, showcasing its strong leadership in the AI infrastructure sector and indicating it will continue to lead the market in the future.
- Acquisition Strategy: By acquiring companies like Groq and SchedMD, Nvidia has enhanced its AI inference solutions, further solidifying its position within the CUDA ecosystem and ensuring its technology remains forward-thinking.
- Key Role of TSMC: As a primary supplier for AI chip manufacturing, TSMC has nearly monopolized the production of advanced chips due to its scale and technological expertise, ensuring high yields and low defect rates, thus becoming the
See More
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- Market Dominance: Nvidia has achieved parabolic revenue growth over the past few years, capturing a 90% market share in the GPU space, which positions it as a leader in AI infrastructure and will continue to benefit from the widespread adoption of AI technologies.
- Strategic Acquisitions: Nvidia has bolstered its competitive edge in AI inference solutions through acquisitions of companies like Groq and SchedMD, integrating critical software elements into its CUDA ecosystem, thereby further solidifying its market position.
- TSMC's Unique Position: As a key player in the AI value chain, TSMC has nearly monopolized the manufacturing of advanced chips due to its scale and technological expertise, ensuring high yields and low defect rates, effectively becoming the
See More
Investment Strategies Amid Market Decline
- Market Status: As of now, the S&P 500 is down nearly 6% from its peak and the Nasdaq Composite has fallen about 9%, indicating a need for investors to be cautious despite not being in a market crash.
- Avoid Panic Selling: Selling investments during a market downturn can lead to greater losses, as history shows that markets can rebound quickly, making it wise to hold onto investments.
- Importance of Long-Term Investing: Analysis from Bespoke Investment Group indicates that since 1929, the average bear market for the S&P 500 lasts about nine months, while bull markets last nearly three years, suggesting that long-term holding can effectively mitigate market volatility.
- Invest in High-Quality Stocks: Focusing on financially sound companies with competitive advantages can enhance a portfolio's resilience during economic downturns, ensuring positive long-term returns.
See More
AI Infrastructure Giants Compete for Dominance
- Nvidia's Market Dominance: Nvidia has achieved approximately 90% market share in GPUs over the past few years, leveraging its forward-thinking strategy and successful deployment of the CUDA platform to drive rapid advancements in the AI revolution, thereby solidifying its leadership in AI infrastructure.
- TSMC's Critical Role: As a key player in the AI value chain, TSMC has nearly monopolized the production of GPUs and AI ASICs due to its advanced chip manufacturing capabilities, ensuring high yields and low defect rates, making it the preferred partner for chip designers.
- Shifting Market Dynamics: While Nvidia excels in the AI space, customers are beginning to seek cheaper alternatives, which may lead to a gradual erosion of its market share, whereas TSMC benefits from the diversification of market power, enhancing its bargaining position.
- Long-Term Investment Outlook: With a significant increase in demand for data center CPUs anticipated in the coming years, TSMC is poised for substantial growth, and its smaller company size combined with changing market dynamics positions its stock for better long-term performance.
See More
