Nvidia's valuation is built on optimism -- namely, optimism that its revenue and profit can continue to grow at blistering rates for years. The stock currently trades for more than 40 times expected earnings for fiscal 2025.

Growing NEV Adoption: The market for new market vehicles (NEVs) is on the rise in China. NIO expects vehicle deliveries in 2025 to double the output from 2023 (roughly 165,000 units). This still only makes up about 2% of the Chinese NEV market and gives NIO plenty of roadway to grab market share for years to come.

Graphics processing powerhouse Nvidia (NVDA) has delivered an astounding 1,780% return over the past five years, making it a multi-bagger