Nvidia (NASDAQ:NVDA), popular among investors and leading investment firms for its remarkable growth trajectory, faces competition. An S&P 500 stock is forecasted to achieve even more rapid expansion than this AI tech giant.
Data analysis from Investor’s Business Daily, utilizing information from S&P Global Market Intelligence and MarketSmith, suggests that casino operator Las Vegas Sands Corp (NYSE:LVS) could realize a whopping 150.7% revenue growth in 2023. This prediction outstrips Nvidia Corp’s (NASDAQ:NVDA) anticipated 100.5% top-line growth for the same year.
However, while Nvidia’s stock has risen by an impressive 211.6% this year, shares of Las Vegas Sands have seen a modest increase of just 1.1%. This highlights a prevalent sentiment: the general investor community remains more bullish on tech stocks like Nvidia than others, says Nicholas Colas of DataTrek Research.
The Allure of Growth
Uncovering substantial growth in firms like Las Vegas Sands and Nvidia is becoming challenging as the overall growth of many S&P 500 entities decelerates. The consolidated revenue growth prediction for S&P 500 companies is a mere 2.4% for this year, according to John Butters of FactSet.
Many businesses, facing a slowdown in growth, are attempting to capture investor attention by weaving promising narratives around AI. Since June 15, a record 177 companies have invoked “AI” in their investor conference calls – three times the average of the last five years. Companies discussing AI have seen their shares go up by 13.3% this year, outperforming those that didn’t mention AI by a wide margin.
However, in the long run, mere mentions of AI must translate into palpable growth figures.
The Surge of Las Vegas Sands
Las Vegas Sands, predominantly operating casinos in Asia, epitomizes corporate resurgence in the post-pandemic era. Analysts project the company’s 2023 revenue to touch $10.3 billion, a potential 151% jump from its 2022 figures. This outpaces even Nvidia’s anticipated growth. Over the subsequent two years, the casino giant’s average annual growth rate is expected to reach 85.2%, surpassing Nvidia’s forecasted 71.3%. However, the market remains tepid, with the stock’s Relative Strength Rating at a modest 53.
Travel and leisure appear to be pivotal themes for S&P 500’s growth narrative, with companies like Carnival Corp (NYSE:CCL), Norwegian Cruise Line Holdings Ltd (NYSE:NCLH), Wynn Resorts, Limited (NASDAQ:WYNN), and Royal Caribbean Group (NYSE:RCL) leading the charge.
Tech’s Diminished Dominance
Investors’ affinity for tech remains undiminished, yet expansive growth is becoming elusive, Nvidia being an exception.
Among the fastest-growing S&P 500 stocks, Nvidia and solar installation company First Solar Inc (NASDAQ:FSLR) are the only representatives from the IT sector. Predictions indicate First Solar’s annual revenue might reach $3.5 billion, marking a 34% growth from the previous year.
On the tech behemoth front, Apple Inc (NASDAQ:AAPL) continues to be an S&P 500 heavyweight, but not due to its growth. Analyst projections hint at a meager 0.6% growth for 2023, with a modest 7.4% for 2024.
In the consumer discretionary sector, Tesla Inc (NASDAQ:TSLA) holds its ground as one of the Magnificent Seven stocks. The EV titan’s revenue is expected to touch $129.0 billion, reflecting a 22.8% increment from last year. Yet, these figures still don’t seem to sway Las Vegas Sands’ stakeholders.
Featured Image – Freepik
Author Kristen Moran 
