Been looking at some wild stock moves from the past couple years and there's definitely a pattern worth discussing.

So the S&P 500 is up like 60% over that stretch, which is already pretty solid. But some individual stocks have absolutely crushed it - we're talking 10-baggers or better. Three that stand out are Summit Therapeutics, Carvana, and Nvidia.

Let's start with Summit Therapeutics. This pharma play went up over 1,600% after their cancer drug ivonescimab showed it could outperform Keytruda in trials. That's the drug Merck has been making billions off for years. The thing is, Summit has no real revenue stream right now, so investors are basically betting the farm on this drug becoming a massive earner. The trial was done in China too, which adds some uncertainty on whether US regulators will be as convinced. With gains that massive already baked in, feels like a wait-and-see situation rather than a chase-the-momentum play.

Then there's Carvana. The used car dealer stock jumped like 1,330% as people got more bullish on auto sales and rates started dropping. They've actually been turning profitable recently, which is huge for a company that was burning cash hard just a couple years back. But here's the catch - their margins are thin, under 20%. That doesn't leave much room for error if costs spike or demand softens. We saw this exact scenario play out in 2022 when the stock tanked 98% in a single year. So yeah, the comeback looks impressive, but the underlying business still feels pretty fragile.

Now Nvidia - probably the least surprising on this list. Up 906% and it's basically the poster child for the AI boom. Their demand situation is insane right now. Jensen Huang literally said customers ordering their new Blackwell chips are looking at over a year wait times. That's the kind of supply crunch that keeps growth humming. They did $30 billion in sales last quarter with 122% year-over-year growth. The data center business especially is on fire. Even at a near-3.5 trillion valuation, there's an argument this stock could keep running for patient investors looking at undervalued growth stocks in the AI space.

The real question now is whether these are still undervalued growth stocks at current levels or if most of the gains are already priced in. Summit feels like pure speculation. Carvana's got operational risk. Nvidia's the most compelling long-term story, but the valuation is definitely something to think about. Depends on your risk tolerance and time horizon.