This Year, One S&P 500 Stock Has Outperformed Bitcoin. Not Tesla Or Meta, Though.

The performance of BitcoinBTCUSD +1.01% this year has outperformed all but one stock, according to the stock market.

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The biggest cryptocurrency has made a comeback after plunging to new lows in the bear market that characterized 2022. Bitcoin's best point since June, $28,750, was reached on Wednesday. It had started the month of January at roughly $16,500. The digital asset has gained 74% year to date, outpacing both the Dow Jones Industrial AverageSPX +0.15%, which is down about 2%, and the S&P 500SPX +0.15%, which is up about 5%, during the same time period.

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As of Wednesday morning, just six S&P 500 components had gained more than 50% this year: Advanced Micro Devices (ticker: AMD), Align Technologies (ALGN), Warner Bros. Nvidia NVDA +3.61%, Meta Platforms META +1.24%, Tesla TSLA -0.64%, and Discovery (WBD) are some examples (NVDA).

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The true standout is that final name: With an 84% gain in share price, Nvidia is the only company in the S&P 500 to have outpaced Bitcoin this year.

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Nvidia is among the majority of the 50%-plus club's high-growth stocks. With stocks in the electric vehicle manufacturer Tesla rising 60% and the social networking firm Meta rising 69%, Tesla and Meta suit that description and aren't too far behind Bitcoin's performance. The Nasdaq Composite's high-growth stock component has performed well this year in part as a result of a change in market perceptions regarding the Federal Reserve's monetary policy.

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In an effort to curb the decades-high inflation, the Fed quickly increased interest rates last year, which skyrocketed bond yields and hurt stocks. Growth-oriented stocks took a beating as a result of lower returns from riskier investments like tech and cryptocurrency and better returns on risk-free treasury securities.

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This year, that story was different. Most traders now believe that the central bank would raise rates gradually, especially in light of recent bank failures.

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But Nvidia is doing more than that. The business is a significant producer of chips for tools supporting artificial intelligence. With the debut of the ChatGPT bot, stocks related to the technology increased.

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A continued focus on AI might maintain the wind in Nvidia's sails. Additionally, Bitcoin's enormous gains might not yet be over. There are still several months until a victor is declared.