In recent years, the artificial intelligence boom has become a core driver of both the economy and the stock market, with its macroeconomic foundation rooted in the thriving construction of data centers. To power these facilities and AI models, the market relies heavily on NVIDIA’s (NVDA) graphics processing units (GPUs), and its near-monopoly position in this business constitutes a significant competitive moat. As hyperscalers continue to invest, NVIDIA’s performance has grown rapidly, with revenue for the first quarter of fiscal year 2027 (ended April 26) surging 85% year-over-year to $81.6 billion. The company’s CEO, Jensen Huang, projects that cumulative sales of its Blackwell and Rubin product lines will reach $1 trillion from 2025 to 2027. Beyond pricing power, operating leverage has also driven a surge in profits, with net income growth reaching as high as 211% in the last fiscal year. Despite its impressive performance, its forward price-to-earnings ratio stands at only 25.6 times, making the valuation appear not overly expensive. Based on this, investors have reason to envision the stock achieving tenfold growth over the next decade (through 2036), yet this potential 900% return still pales in comparison to its historic gain of 14,280% over the past ten years (through August 17).
Compared to NVIDIA, another stock—Strategy (MSTR)—exhibits more noteworthy tenfold growth potential at the current juncture, despite its share price having been cut in half this year. The company, formerly MicroStrategy, is under heavy pressure from the Bitcoin bear market, holding $54 billion worth of digital assets, which causes its stock price volatility to be frequently amplified. Bitcoin’s inherent four-year boom-bust cycle suggests that bear markets are typically followed by sharp rebounds, with historical data hinting that the cryptocurrency may bottom out and recover later this year, creating a favorable environment for Strategy, a “leveraged Bitcoin bet.” Although the company’s business model involves complex financial engineering, its core solvency remains robust: even with Bitcoin prices down 48% from their peak, the company can still meet its dividend and interest payment obligations.
For investors who are bearish on Bitcoin, Strategy is naturally not favored, and they are more inclined to believe that NVIDIA has a higher probability of achieving tenfold growth in ten years. However, this would imply that NVIDIA’s market capitalization would inflate to $55 trillion by then (assuming no change in share count), which seems unrealistic. NVIDIA is deeply tied to the current AI spending boom, and its future performance is highly dependent on hyperscalers’ capital expenditures. Although such spending is still growing, a slowdown will eventually arrive, meaning its future returns will find it difficult to replicate past glories. In contrast, Strategy relies on two enduring trends—persistent currency depreciation and broader Bitcoin adoption—and has built a business model that converts unlimited fiat currency into scarce Bitcoin.
Recent data confirm the improvement in Strategy’s situation. On-chain data shows that the average purchase cost of its massive Bitcoin holdings is $75,385. With the cryptocurrency’s price recovering to around $75,085, unrealized losses have sharply contracted from $9.904 billion to $685 million. This drastic correction in the financial metric has substantially alleviated the book pressure that has long plagued the company. Once Strategy breaks through its breakeven point, its accumulation strategy will gain stronger support, which not only helps boost shareholder confidence but may also attract new investors who had previously been deterred by concerns over unrealized losses, signaling a shift in enterprise-level digital asset holdings from defense toward strategic expansion.
