If You Buy $10,000 of Nvidia Stock Today, Will You Become a Millionaire in 10 Years?

Nvidia (NVDA 2.81%) clearly put many investors on the road to riches — and even made millionaires — in recent years. Over the past decade, investors rushed to get in on what may be the biggest artificial intelligence (AI) success story so far in this AI boom, and that’s pushed the stock to a mind-boggling 30,000% increase.

Investors turned to Nvidia for one good reason. The company was first to market with the most powerful graphics processing units (GPUs) around to drive key AI tasks, and this supercharged earnings — revenue and profit have gained in the double or triple digits every quarter over the past several years. And they’ve reached record levels, into the billions of dollars.

Today, with analysts predicting more growth ahead in the AI market, you may be wondering if you still might score a major investing victory through Nvidia. If you buy $10,000 of Nvidia stock today, for example, will you become a millionaire in 10 years? Let’s find out.

From $10,000 to $3 million

First, let’s start out by examining how Nvidia made millionaires over the past decade. If you had purchased $10,000 of Nvidia stock in September of 2015, today the value of that investment would be more than $3 million. The stock, as mentioned, soared more than 30,000% over that time period.

It’s clear that Nvidia has what it takes to continue building wealth for investors even after that spectacular gain. The company just recently predicted that AI infrastructure spending may climb to as much as $4 trillion over the next few years — and Nvidia, as the top seller of chips powering the high-potential area of inferencing — is well positioned to garner a lot of this business.

The company already counts the biggest tech companies — from Microsoft to Meta Platforms — as customers, and as these players aim to score an AI win, it’s likely they will want to continue using the most powerful tools around. Nvidia’s commitment to innovation suggests it will be the provider of those products and services — the company has promised to update its GPUs every year and has set out a plan through 2028 so far.

It’s also important to remember that beyond AI infrastructure buildout, additional phases of AI growth — from robotics to the application of AI to real world uses in industries from autos to healthcare — should drive earnings higher well into the future. Nvidia’s chips and other offerings are key because they will power these many uses of AI.

An impossible market value

So, it’s fair to say that, with earnings potentially climbing, Nvidia’s share price may follow over the coming decade. Now, let’s consider if this could turn your $10,000 investment today into millions over 10 years. If you invested $10,000 in Nvidia right now, and the stock replicated its performance of the past decade, gaining 30,000%, Nvidia stock would trade for $53,277. That would bring market value to more than $1 quadrillion. That’s not likely to happen.

It’s important to remember that Nvidia was able to increase 30,000% because, 10 years ago, the stock was trading for less than 60 cents a share. It’s much easier to soar by that degree when a stock price is extremely low and there is room for gains in market value. Today, Nvidia’s growth potential is limited to a certain degree by the company’s size.

But here’s some good news: Even if Nvidia doesn’t replicate the performance of the past decade, it still could help you along on the path to wealth. As I recently predicted, it’s very possible the stock could climb in the triple-digits, valuing Nvidia at $10 trillion by 2030.

With the AI boom going strong and Nvidia’s strengths established, the company has confirmed its potential for longtime dominance in the field and ongoing earnings growth. This makes it a safer bet than it was a decade ago, when the AI story hadn’t yet made the headlines. So today, Nvidia, especially as it trades at the reasonable valuation of 39x forward earnings estimates, makes a fantastic buy for any tech investor looking for a potential long-term winner. Nvidia, on its own may not make you a millionaire, but as part of a diversified portfolio, it could help you get there.