3 Stocks That Have Generated 1,000% Returns in Just 2 Years

In the last two years, the S&P 500 has experienced remarkable gains, rising nearly 60%. This performance is exceptional, especially when compared to its long-term average return of about 10% per year.

During this period, several stocks have delivered extraordinary returns due to robust business models and significant value creation in their respective markets. Three notable stocks that have yielded 1,000% returns in just two years are Summit Therapeutics (SMMT), Carvana (CVNA), and Nvidia (NVDA). However, the question remains: is it too late to invest in these stocks, or do they still have the potential for further growth?

Summit Therapeutics: Up 1,600%

Summit Therapeutics, a pharmaceutical company, has seen its stock surge after positive results from trials of its cancer drug, ivonescimab. This drug outperformed Keytruda, a blockbuster medication from Merck that has generated billions of dollars. Currently, Merck has a market capitalization of around $270 billion, which is roughly 17 times greater than Summit's current valuation.

Investors are excited not just for potential approval of ivonescimab but also for its long-term revenue prospects. However, with no existing recurring revenue, investing in this stock carries significant risk. The trial results, while promising, were conducted in China, and it remains uncertain if they will be sufficient to garner U.S. regulatory approval.

Given Summit's impressive gains, it may be prudent for investors to adopt a cautious approach. While there is still potential for growth, the associated risks should not be ignored.

Carvana: Up 1,330%

Carvana, an online platform for purchasing used cars, has also seen its stock prices soar as investor sentiment improves in the auto market alongside falling interest rates. The company has shown improved financial performance, reporting profits in recent quarters, which has helped boost investor confidence.

There may be increased demand for used cars during economic downturns, as budget-conscious consumers seek more affordable alternatives. However, Carvana operates with low gross margins, below 20%, which offers little leeway to confront rising costs. Last year, the company recorded an operating loss of $72 million, indicating the need for careful financial management.

The unpredictability of Carvana's earnings and its narrow profit margins make it a risky investment. Notably, the stock fell 98% during a market downturn in 2022, highlighting its volatile nature. This risk factor calls for potential investors to consider waiting for more consistent earnings results before making a long-term commitment.

Nvidia: Up 906%

Nvidia, the leading chipmaker, is another stock on this impressive list, primarily due to its involvement in the AI boom. The demand for Nvidia's products has surged, and the company has consistently reported strong sales figures, with expectations for continued growth.

CEO Jensen Huang has noted an overwhelming demand for their Blackwell AI chip, with a backlog that could cause delays exceeding a year for new customers. This scenario positions Nvidia favorably for sustained growth in the near future.

In its latest quarterly report, Nvidia achieved a remarkable 122% year-over-year increase in sales, totaling $30 billion, with a 154% surge in data center revenue. This robust performance makes Nvidia an appealing option for investors focusing on the AI sector. Although its nearly $3.5 trillion valuation might limit future returns, it remains a potentially strong long-term investment.

This article offers an overview of stocks with remarkable growth over the past two years. At this point, investors should carefully consider the associated risks and the potential for continued gains.

stocks, investment, returns