Can Investing $10,000 in Nvidia Make You a Millionaire?

Nvidia (NVDA -1.92%) no doubt it has helped some investors reach the million dollar mark in recent years. The artificial intelligence (AI) chip leader has seen its stock rise more than 2,400% in five years. Moreover, Nvidia generated triple-digit gains in revenue and profits quarter after quarter. In fact, quarterly profits today are higher than a full year of profits recently, starting in fiscal 2023.

So it’s clear that Nvidia was a winning investment for those who got into the stock early before it became an AI powerhouse. Now, the big question: Going forward, could Nvidia once again help investors reach millionaire status? Demand has not let up for Nvidia’s AI chips, and the company is aggressively focused on staying ahead of the curve in the AI ​​market. At the same time, some investors worry that competition could hurt Nvidia’s market share or put pressure on its pricing power.

With all this in mind, can a $10,000 investment in Nvidia make you a millionaire today, or is it too late to count on Nvidia as a millionaire maker? Let’s find out.

Image source: Getty Images.

Nvidia’s past performance

First, it’s important to note that a single stock is unlikely to make you a millionaire unless you invest an incredibly large amount of money in it. It would be very risky so I wouldn’t recommend it. But a quality company — like Nvidia — could play a big role on the way to millions. We’ll use Nvidia’s past performance as an example.

If you had invested $10,000 in stocks five years ago, your investment would be worth more than $256,000 today. Along with a collection of other solid companies, you may have seen your portfolio reach $1 million. So, a good company may not do the complete job, but it can give you a significant boost to reach your goal.

Now, let’s get back to Nvidia’s potential to do it again and help you reach millionaire status. In recent weeks, Nvidia shares have lost momentum. Shares have fallen 7% in the past month as investors worried that rivals could hurt Nvidia’s market share or that any disappointment in economic growth could slow spending on AI projects — and that would mean less revenue for Nvidia.

Earlier this week, I wrote about why Nvidia shareholders shouldn’t worry about the competition. The bottom line is that major players looking to win the AI ​​race are looking to Nvidia as a source for the best graphics processing units (GPUs) to power their projects. “There’s nothing better than Nvidia hardware for AI right now.” adze Chief Executive Elon Musk said earlier this year when Nvidia announced its new architecture, Blackwell.

On the economics side, yes, any potential trouble here could hurt growth projects, but it wouldn’t just affect Nvidia. In tough economies, most companies in high growth mode suffer as projects are delayed or moved more slowly. But here’s the good news: history shows us that these phases are never permanent and are always followed by a return to growth.

Nvidia’s biggest customers

It’s also important to note that Nvidia’s biggest customers are considered to be some of the most powerful companies around — from Microsoft TO Meta platforms — meaning that even in tough times, it’s unlikely to completely abandon all growth investments.

Finally, another thing to consider is that it’s still early days in AI development, and Nvidia promises to update its AI chips annually, so there’s plenty of room for Nvidia to keep growing in the future. And Nvidia isn’t just about chips. The company has the products and services that make it a one stop shop for its customers.

Back to our question: Could Nvidia help you become a millionaire with a $10,000 investment today? I think the stock, as it has done in the past, could help you down the road in the long run. It is impossible to predict whether the performance of stocks will be as impressive, more impressive or slower than in the past. But over time, Nvidia has what it takes to play a key role in your goal of building a million dollar portfolio, making it a great stock to buy right now.