Investing for retirement doesn’t mean making one big gamble on stocks that will tank or soar. In fact, that can lead to fear and anxiety over your nest egg. Consider what would have happened if all your savings were tied up in Tesla stock when it plummeted by 65% in 2022.
A better approach is to allocate a reasonable amount, invest consistently, and hold shares in a great business through its ups and downs. Nvidia (NVDA) is one such company that can help you achieve a comfortable retirement.
Nvidia’s stock has risen over 800% since the beginning of 2023, driven by its vast growth potential for artificial intelligence use cases. But it’s not just about potential – Nvidia’s results have been impressive, with revenue more than quadrupling in two years. Its GPUs are the industry standard, and dozens of tech companies rely on them to build and monetize generative AI models.
Investing $10,000 in Nvidia stock at the start of 2023 would now be worth nearly $92,000. While this return is uncommon, buying and holding Nvidia stock for years to come could still make you a millionaire.
Nvidia’s growth potential comes from its vast customer base and expanding product offerings. The company’s CEO, Jensen Huang, says demand for the Blackwell AI accelerator is “incredible,” and production ramps up next year will continue to drive revenue growth. Nvidia’s CUDA software platform helps developers broaden applications on different types of GPU-accelerated embedded systems, creating a GPU computing ecosystem.
While some large technology companies may slow their spending on Nvidia chips, the demand from its long line of customers should keep revenue strong. The company’s data center segment has stabilized its sequential quarter-over-quarter growth, and Huang is touting the next growth phase of “sovereign AI,” which refers to a nation’s investments in AI to propel innovation across many fields.
Achieving millionaire status through investing takes time and conviction. But with Nvidia’s bright long-term future, investors would likely do well to buy and hold the stock for years and decades to come.
Source: https://www.fool.com/investing/2024/12/17/could-nvidia-stock-help-you-retire-a-millionaire