The Nvidia (NASDAQ:NVDA) share price continues to maneuver larger after outcomes earlier this week. Up nearly 10x from the beginning of 2021, the inventory has been flying. As I feel the rally may begin to stall, I’m eager to take a look at what made the corporate take off and attempt to discover a comparable UK inventory that might doubtlessly provide me comparable returns.

Eager about key factors

There are a number of parts which have helped Nvidia achieve this effectively over the previous few years. To start with, the enterprise was on the coronary heart of a development sector, specifically synthetic intelligence (AI). This isn’t only a flash within the pan, that is going to be an enormous theme for years to come back.

One other issue was recognition. Each retail and institutional buyers jumped in as soon as the inventory began to get extra publicity. From then on, it has change into nearly a self-fulfilling prophecy because it has nearly change into unusual for somebody to not personal the inventory.

Lastly, the inventory must have the potential for development. Nvidia had a comparatively small market cap again in 2021. This meant that it may actually surge in worth for a protracted interval earlier than the market cap reached the dizzying heights that it’s at as we speak.

An concept I like

Based mostly on these elements, I just like the look of ITM Energy (LSE:ITM). It’s an power storage and clear gasoline firm, that manufactures electrolysers that assist to supply inexperienced hydrogen.

It will get an enormous tick within the field for being in a development sector. Renewable power goes to be key over the following decade. The power for inexperienced hydrogen to assist generate electrical energy implies that it has an enormous quantity of economic makes use of. There actually is not any restrict on the potential income alternative.

Reputation is one other level that ITM Energy definitely had up to now, and will have once more. From the beginning of 2020 to the center of Q1 2021, the share price jumped tenfold. This was on the again of a mixture of excellent news concerning it signing new offers, in addition to an enormous quantity of retail investor curiosity.

The inventory is now again at 51p, so much like late 2019 ranges. Greater-than-expected losses in recent times have harm the share price, which is down 28% over the previous 12 months. This implies the market cap is now at £316m. It’s not a penny inventory, however definitely not a large-cap identify. As such, the share price has room to run larger earlier than the market cap will get unrealistic.

Funds are an issue

One key distinction between ITM Energy and Nvidia is the funds. Nvidia was (and nonetheless is) a really worthwhile firm. ITM Energy misplaced £101m within the final monetary 12 months. The agency must concentrate on extra product and repair income with the intention to flip to being worthwhile. Finally, if it may well’t get to a place of posting a revenue, any massive share price rally goes to be robust.

I do see worth in ITM Energy shares proper now and am fascinated with investing a small quantity. After all, it’s not a low-risk concept. However then once more, if somebody was taking a look at Nvidia again in 2021, I doubt few would have predicted the meteoric rise both.