Bitcoin vs. NVIDIA: Digital Gold or AI Giant for Long-Term Growth?
For long-term investors, Bitcoin (BTC) remains a highly speculative and volatile asset facing significant selling pressure. In contrast, NVIDIA Corporation NVDA stands out as a stronger long-term investment thanks to its solid fundamentals and promising growth prospects. Here’s why –
Bitcoin Sinks as Crypto Winter Deepens
Bitcoin’s price has been declining steadily for some time, ushering in what many are calling a crypto winter. After reaching an all-time high of $127,000 in October last year, the digital asset dropped below $90,000 in December and then slipped under $80,000 in January. Following its most recent slide, Bitcoin is now down 22.9% year to date, trading around $67,000.
So, what triggered the downfall? Obviously, Bitcoin entered a correction after record highs, as selling pressure intensified and profit-taking weighed on the price. At the same time, institutional participation declined as interest in the so-called digital gold cooled, contributing to broader pessimism across the crypto market. U.S. spot Bitcoin ETFs saw an outflow of $3 billion in January this year, following withdrawals of $7 billion in November and $2 billion in December last year.
Geopolitical tensions also pushed investors toward safe havens like gold and silver, while demand for Bitcoin and other cryptocurrencies softened, as they are generally viewed as riskier investments. Overall, sentiment toward cryptocurrencies, including Bitcoin, remains weak, with the Crypto Fear & Greed Index firmly in the “extreme fear” territory.
NVIDIA Rides AI Boom as Revenues Soar on Easing Trade Woes
NVIDIA is undoubtedly encountering stiff competition from rivals like Intel Corporation INTC and Advanced Micro Devices, Inc. AMD as data center capital expenditure increases. Nevertheless, driven by the rapid rise of AI, NVIDIA continues to deliver impressive quarterly results. This sustained performance is largely due to the incessant demand for its cutting-edge chips, especially the latest Blackwell architecture, as well as the ever-increasing need for cloud-based graphics processing units (GPUs).
NVIDIA expects global data center spending to reach between $3 trillion and $4 trillion annually by 2030, creating a significant opportunity for the company to expand sales of its computing hardware. U.S.-China trade complications have also settled somewhat, which is a positive development for NVIDIA. Chinese officials have approved the sale of H200 AI chips to select customers, including ByteDance and Alibaba Group Holding Limited BABA. The Trump administration has already granted approval for these chips to be shipped to China.
NVIDIA now anticipates fiscal fourth-quarter 2026 revenues of nearly $65 billion, plus or minus 2%, according to investor.nvidia.com. In the third quarter of fiscal 2026, the company’s revenues surged 62% year over year and 22% quarter over quarter to $57 billion.
Bitcoin or NVIDIA: Which Is the Better Long-Term Bet?
After its peak, Bitcoin’s downfall has been fueled by profit-taking, reduced institutional interest, rising geopolitical tensions that pushed investors toward safer assets, and overall weak sentiment across the crypto market. For now, the market appears to be waiting for fresh catalysts to resume Bitcoin’s momentum. However, one thing is clear: it is a highly speculative asset, and it faces massive selling pressure during periods of negative investor sentiment, making it less suitable for a long-term investment.
On the other hand, NVIDIA is a proven stock that has delivered consistent returns despite geopolitical challenges and intense competition. NVIDIA remains strongly positioned for future growth fueled by rising demand for its chips and a continued increase in data center spending. NVIDIA’s net profit margin of 53% exceeds the Semiconductor – General industry’s average of 50.1%, underscoring its strong growth and making it an attractive long-term buy (read more: NVIDIA vs. Palantir: One AI Stock is a Clear Buy Right Now).
Image Source: Zacks Investment Research
NVIDIA, currently, has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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